4 Sick Healthcare Stocks to Sell

by Portfolio Grader | May 2, 2012 9:00 am

Healthcare is recession-proof, since people need their medications and treatment in any market. However that doesn’t mean that there aren’t winners and losers. Patent expirations, lucrative government contracts and favorable pricing with insurers and hospitals can make a huge difference in whether a healthcare stock rises or falls.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures. And this week, I found four healthcare stocks to sell.

Here they are, in alphabetical order. Each one of these stocks gets a “D” or “F” according to my research, meaning it is a “sell” or “strong sell.”

Becton Dickinson (NYSE:BDX[2]) develops medical devices, instrument systems and reagents. In the last year, Becton Dickinson stock has posted a loss of 9%, compared to a gain of 3% for the Dow Jones in the same time. BDX stock gets a “D” grade for sales growth. For more information, view my complete analysis of BDX stock[3].

Fresenius Medical Care (NYSE:FMS[4]) is a kidney dialysis company that has posted a stock loss of 10% since last May. Fresenius stock gets a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “D” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of FMS stock[5].

Novartis (NYSE:NVS[6]) develops medicines, eye care products, cost-saving generic pharmaceuticals, preventive vaccines and diagnostic tools, among other products. NVS is down 7% in the last year. Novartis stock gets a “D” grade for sales growth, a “D” grade for operating margin growth, a “D” grade for earnings growth, a “D” grade for earnings momentum and a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street. For more information, view my complete analysis of NVS stock[7].

St. Jude Medical (NYSE:STJ[8]) develops, manufactures and distributes cardiovascular medical devices. St. Jude is the biggest loser on this list, down 28% since this time last year. STJ stock gets a “D” grade for operating margin growth and a “D” grade for earnings growth. For more information, view my complete analysis of STJ stock[9].

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[10] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

 

Source URL: https://investorplace.com/2012/05/4-healthcare-stocks-to-sell-bdx-fms-nvs-st/

---