What could happen to stocks if Obamacare faces more legal battles?

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By James Dennin for Kapitall.

A federal appeals court in Washington, D.C.  has handed down a decision that could threaten the implementation of President Obama's healthcare law.

Bringing further confusion to the matter was another ruling from an appeals court in Virginia, which ruled the exact opposite and was released on the same day. 

At the heart of the issue was whether it was legal for the federal government to offer subsidies to low- and middle-income consumers in states that don't have a state exchange. Since most states with Republican legislatures refused to set up exchanges, this would affect the poor uninsured in 37 states. 

While Obamacare is probably here to stay in some form or another, attempts to dismantle the law have proved resilient. We decided to revisit previous lists  that investigated which companies would benefit from a ruling against Obamacare. 

Conventional wisdom held that the law would be good for insurance companies, who would benefit from all the new customers as insurance became compulsory. From a year ago today, 12 of the 13 public health care providers are up, half by 25% or more. 

Generic drug makers were also supposed to benefit-and two-thirds of them have also performed well over the last year as the law has been implemented. 

On the other hand, determining which companies don't benefit from Obamacare is much more difficult. Critics of the law have argued that the law harms the housing market , by forcing families to devote more resources to healthcare instead of their home.

And hospitals were also expected to suffer under the law, since stipulations within Obamacare are criticized as making it too hard to turn a profit. We decided to build a list of these four industries within the healthcare and housing sector to help you follow Obamacare through the courts (again).

Do you think it's here to stay? Use the list below to begin your analysis, and let us know what you think in the comments. 

Click on the interactive chart to view data over time. 

Health insurance and generic drug providers (largest by market cap.)

1. Actavis plc ( ACT , Earnings , Analysts , Financials ): Integrated specialty pharmaceutical company. Market cap at $57.84B, most recent closing price at $218.18. 

2. Mylan, Inc. ( MYL , Earnings , Analysts , Financials ): Engages in the development, manufacture, marketing, licensing, and distribution of generic and branded generic pharmaceuticals, specialty pharmaceuticals, and active pharmaceutical ingredients (APIs) worldwide. Market cap at $19.4B, most recent closing price at $51.90. 

3. Unitedhealth Group, Inc. ( UNH , Earnings , Analysts , Financials ): Provides healthcare services in the United States. Market cap at $83.8B, most recent closing price at $85.52. 

4. WellPoint Inc. ( WLP , Earnings , Analysts , Financials ): Operates as a health benefits company in the United States. Market cap at $32.14B, most recent closing price at $114.93. 

Home construction and hospitals, by market cap. 

5. Lennar Corp. ( LEN , Earnings , Analysts , Financials ): Operates as a home builder and provider of financial services in the United States. Market cap at $7.86B, most recent closing price at $39.43. 

6. DR Horton Inc. ( DHI , Earnings , Analysts , Financials ): Operates as a homebuilding company in the United States. Market cap at $7.77B, most recent closing price at $23.90.

7. HCA Holdings, Inc. ( HCA , Earnings , Analysts , Financials ): Offers health care services in the United States. Market cap at $27.76B, most recent closing price at $62.44.

8. Universal Health Services Inc. ( UHS , Earnings , Analysts , Financials ): Operates acute care hospitals, behavioral health centers, surgical hospitals, ambulatory surgery centers, and radiation oncology centers. Market cap at $9.52B, most recent closing price at $96.30. 

(List compiled by James Dennin. Monthly returns sourced from Zacks Investment Research, all other data sourced from Finviz.)

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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