Blue Chip Stock to Buy #2 – Hospira, Inc.
Illinois health care company Hospira, Inc. (NYSE: HSP) is another great blue chip stock to buy. HSP stock was spun off from drug stock Abbott Laboratories (NYSE: ABT) and makes specialty injectable pharmaceuticals (primarily generics) and other drug delivery-related equipment. Almost half of Hospira’s sales are to group purchasing organizations (GPOs), including Premier, Broadlane and Novation, which means it can see a sales windfall in a hurry by virtue of a big order.
As with ABC, health care reform has been kind to Hospira. The company’s latest earnings report at the end of April blew away forecasts by more than 30%. That would be impressive enough, but it’s the fourth-straight earnings surprise of over 20% for HSP stock. Investors can rely on earnings strength like that in any market.
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