6 Flatlining Healthcare Stocks to Sell

by Portfolio Grader | May 9, 2012 12:45 pm

[1]Health care stocks are pretty stable considering the built-in demand for drugs and medical devices that keep Americans healthy.

However, with looming patent expirations for some pharmaceutical companies and hot competition for business, that doesn’t mean that all medical stocks are in healthy shape right now.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[2] tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve identified six health care 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.”

AstraZeneca (NYSE:AZN[3]) is involved with issues pertaining to cardiovascular, gastrointestinal, infection, neuroscience, oncology, and respiratory and inflammation. In the last 12 months, AstraZeneca stock has dipped 13%, compared to gains by the broader markets. AZN stock gets an “F” grade for sales 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 in my Portfolio Grader tool. For more information, view my complete analysis of AZN stock[4].

Becton Dickinson (NYSE:BDX[5]) is a global medical technology company that has posted an 11% loss in the last year. Becton Dickinson stock gets a “D” grade for sales growth and a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street in my Portfolio Grader tool. For more information, view my complete analysis of BDX stock[6].

Medtronic (NYSE:MDT[7]) develops products that alleviate pain, restore health and extend life. Since last May, Medtronic stock has dropped 10%. MDT stock gets a “D” grade for sales growth and a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street in my Portfolio Grader tool. For more information, view my complete analysis of MDT stock[8].

Novartis (NYSE:NVS[9]) operates a portfolio of products including medicines, eye care, cost-saving generic pharmaceuticals, preventive vaccines, over-the-counter medicines and animal health products. Since May of 2011, NVS stock is down 10%. 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 a “D” grade for its ability to exceed the consensus earnings estimates on Wall Street in my Portfolio Grader tool. For more information, view my complete analysis of NVS stock[10].

St. Jude Medical (NYSE:STJ[11]) develops cardiovascular medical devices and has posted a loss of 28% since last May. St. Jude stock gets a “D” grade for sales growth and a “D” grade for operating margin growth in my Portfolio Grader tool. For more information, view my complete analysis of STJ stock[12].

WellPoint (NYSE:WLP[13]) is a health benefit company that serves more than 34 million people nationwide. WellPoint rounds out the list with a loss of 14% in the last year. WLP stock gets a “D” grade for sales growth and a “D” grade for operating margin growth in my Portfolio Grader tool. For more information, view my complete analysis of WLP stock[14].

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[15] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

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