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Healthcare Ideas: 8 Rallying Healthcare Stocks Being Snapped By The Smart Money

By: Kapitall
Posted: 5/18/2011 10:42:00 AM
Referenced Stocks: ATEC;AVNR;ECYT;HCA;HWAY;IRWD;SQNM;TLCR

Looking to go with the trend while getting exposure to the healthcare sector? If so, then this may be an interesting starting point for your own analysis.

To construct this list we looked for stocks with the following characteristics:

-       Healthcare related with market cap of over $300M

-       Trading above the 20-, 50-, 200-day moving averages

-       Experienced significant institutional buying over the current quarter

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Given the bullish trend, which of these names will continue to trade higher and which will do otherwise?

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List sorted by institutional buying as a percentage of the floating shares.

1. HCA Inc. (HCA): Hospitals Industry. Market cap of $17.66B. This stock is trading 3.73% above its 20-day MA, 4.82% above its 50-day MA, 4.82% above its 200-day MA. On a net basis, institutional investors purchased 75.9M shares during the current quarter - which is equivalent to 72.42% of the outstanding shares. The stock has gained 0.% over the last year.

2. Endocyte, Inc. (ECYT): Drug Manufacturers - Major Industry. Market cap of $350.76M. This stock is trading 6.8% above its 20-day MA, 26.59% above its 50-day MA, 35.45% above its 200-day MA. On a net basis, institutional investors purchased 9.5M shares during the current quarter - which is equivalent to 37.37% of the outstanding shares. Exhibiting strong upside momentum--currently trading 6.8% above its SMA20, 26.59% above its SMA50, and 35.45% above its SMA200. The stock has had a good month, gaining 30.5%.

3. Talecris Biotherapeutics Holdings Corp. (TLCR): Biotechnology Industry. Market cap of $3.55B. This stock is trading 0.43% above its 20-day MA, 3.3% above its 50-day MA, 15.79% above its 200-day MA. On a net basis, institutional investors purchased 16.9M shares during the current quarter - which is equivalent to 32.73% of the outstanding shares. The stock has gained 56.76% over the last year.

4. Sequenom Inc. (SQNM): Biotechnology Industry. Market cap of $782.57M. This stock is trading 6.92% above its 20-day MA, 17.85% above its 50-day MA, 17.41% above its 200-day MA. On a net basis, institutional investors purchased 19.8M shares during the current quarter - which is equivalent to 22.09% of the outstanding shares. Relatively low correlation to the market (beta = 0.28), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 17.22% (equivalent to 7.53 days of average volume). Exhibiting strong upside momentum--currently trading 6.92% above its SMA20, 17.85% above its SMA50, and 17.41% above its SMA200. The stock has had a good month, gaining 11.42%.

5. Avanir Pharmaceuticals (AVNR): Drug Manufacturers - Other Industry. Market cap of $492.68M. This stock is trading 1.98% above its 20-day MA, 5.0% above its 50-day MA, 10.6% above its 200-day MA. On a net basis, institutional investors purchased 15.7M shares during the current quarter - which is equivalent to 13.1% of the outstanding shares. This is a risky stock that is significantly more volatile than the overall market (beta = 2.44). The stock is a short squeeze candidate, with a short float at 27.25% (equivalent to 5.94 days of average volume). The stock has gained 44.36% over the last year.

6. Ironwood Pharmaceuticals Inc. (IRWD): Medical Laboratories & Research Industry. Market cap of $1.48B. This stock is trading 0.67% above its 20-day MA, 6.0% above its 50-day MA, 28.96% above its 200-day MA. On a net basis, institutional investors purchased 6.0M shares during the current quarter - which is equivalent to 12.65% of the outstanding shares. The stock is a short squeeze candidate, with a short float at 5.55% (equivalent to 9.81 days of average volume). The stock has gained 13.06% over the last year.

7. Alphatec Holdings, Inc. (ATEC): Medical Instruments & Supplies Industry. Market cap of $303.04M. This stock is trading 7.45% above its 20-day MA, 15.73% above its 50-day MA, 32.53% above its 200-day MA. On a net basis, institutional investors purchased 6.5M shares during the current quarter - which is equivalent to 12.08% of the outstanding shares. Exhibiting strong upside momentum--currently trading 7.45% above its SMA20, 15.73% above its SMA50, and 32.53% above its SMA200. The stock has had a couple of great days, gaining 11.11% over the last week.

8. Healthways Inc. (HWAY): Specialized Health Services Industry. Market cap of $556.60M. This stock is trading 3.32% above its 20-day MA, 5.65% above its 50-day MA, 26.39% above its 200-day MA. On a net basis, institutional investors purchased 3.7M shares during the current quarter - which is equivalent to 11.21% of the outstanding shares. The stock has had a good month, gaining 15.02%.

Data sourced on May 17th from Fidelity and Finviz.