11 Health Care Stocks to Sell

by Louis Navellier | August 2, 2010 9:03 pm

Health care stocks are a vital part of most investors’ portfolio. The theory goes that people will always get sick, so these companies will always have healthy profits. Well unfortunately, some rough quarterly earnings reports and dips in share values in recent weeks have proven that even the health car sector is subject to some volatility and that no earnings are guaranteed.

Here are a number of pharma and medical blue chips that have not lived up to expectations and are hazardous to the health of your portfolio:

Amgen (AMGN)

Market Cap: $52.6 billion

Dividend Yield: N/A

Amgen Inc. (NASDAQ: AMGN[1]) is an independent biotechnology medicines company. The Company discovers, develops, manufactures and markets medicines for grievous illnesses focusing on human therapeutics and medicines based on advances in cellular and molecular biology.  Its current quarter growth estimate is at -14.8% and AMGN sales were slightly down with some of the big name drugs in its catalog. Amgen is a better bet as a sell than a hold.

Gilead Sciences (GILD)

Market Cap: $30.7 billion

Dividend Yield: N/A

Gilead Sciences, Inc. (NASDAQ: GILD[2]) is a biopharmaceutical company that discovers, develops and commercializes therapeutics. The Company products include Truvada, Atripla, Viread, and Emtriva. Coming off a quarter with lower than expected revenue stream, GILD is also in the wake of a negative earnings report and shares have dropped more than -20% year-to-date. Don’t let Gilead infect the rest of your portfolio as it rides out its unhealthy wave.

Celgene (CELG)

Market Cap: $25.9 billion

Dividend Yield: N/A

Celgene Corporation (NASDAQ: CELG[3]) is an integrated biopharmaceutical company primarily engaged in the discovery, development and commercialization of therapies designed to treat cancer and immune-inflammatory related diseases. With stock returns down -9.4% in the past three months and the company slow to gain momentum, the future for CELG shares present a high risk threat.

Baxter (BAX)

Market Cap: $26.7 billion

Dividend Yield: 2.59%

Baxter International Inc. (NASDAQ: BAX[4]) develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. While the company did just announce a dividend payable on October 1, since February of this year BAX has diverged greatly from the performances of the broader markets—falling more than -20% below both the S&P and Dow Jones in that time.

Covidien (COV)

Market Cap: $18.8 billion

Dividend Yeild: N/A

Covidien Public Limited Company (NYSE: COV[5]) is engaged in the development, manufacture and sale of healthcare products for use in clinical and home settings. The Company operates in three business segments: medical devices, pharmaceuticals and medical supplies. Analysts have already projected negative growth estimates for this quarter and next quarter on Covidien stock, so investors should proceed with caution when pairing money with this projected loser.

St. Jude Medical (STJ)

Market Cap: $12.2 billion

Dividend Yield: N/A

St. Jude Medical, Inc. (NYSE: STJ[6]) develops, manufactures and distributes cardiovascular medical devices for the global cardiac rhythm management, cardiology and cardiac surgery and fibrillation therapy areas and neurostimulation medical devices for the management of chronic pain. In July 2010, St. Jude acquired LightLab Imaging, Inc. but showed little financial upside to investors with an ongoing weak performance at -8.9% over the past three months.

Thermo Fisher Scientific (TMO)

Market Cap: $18.5 billion

Dividend Yield: N/A

Thermo Fisher Scientific Inc. (NYSE: TMO[7]) provides analytical instruments, equipment, reagents and consumables, software and services for research, manufacturing, analysis, discovery and diagnostics. It operates through two segments: analytical technologies and laboratory products and services. TMO shares are in the midst of a nosedive while the Dow and S&P trend upward this past week, losing more than-12% since last Monday.

Johnson & Johnson (JNJ)

Market Cap: $161.9 billion

Dividend Yield: 3.68%

Johnson & Johnson (NYSE: JNJ[8]) is engaged in the research and development, manufacture and sale of a range of products in the health care field. The Company operates in three business segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics. Perhaps best known for its Band-Aid bandages, Tylenol, baby products and other household items, lately JNJ has also become associated with lackluster stock performance. By hitting its 52-week low less than two weeks ago, this stock should be on sell list for shareholders.

Pfizer (PFE)

Market Cap: $123.8 billion

Dividend Yield: 4.7%

Pfizer Inc. (NYSE: PFE[9]) is a research-based, global biopharmaceutical company. The Company applies science and its global resources to improve health and well-being at every stage of life. Popular drugs manufactured by Pfizer include Celebrex, Lipitor, and Viagra. With earnings set to be released this week, the outlook for investing in Pfizer stock does not appear to be positive.

Sanofi-Aventis (SNY)

Market Cap: $78.8 billion

Dividend Yield: 4.9%

Sanofi-Aventis (NYSE: SNY[10]) is a pharmaceutical group engaged in the research, development, manufacture and marketing of healthcare products. SNY business includes two main activities: pharmaceuticals and human vaccines through sanofi pasteur. The Parisian –based company has lost more than -12% in share value in the past three months alone. It should also be noted that while earnings estimates are consistently poor, SNY is projected to underperform even the bleak projections in the coming months.

Teva Pharmaceuticals (TEVA)

Market Cap: $46.7 billion

Dividend Yield: 1.43%

Teva Pharmaceutical Industries Limited (NASDAQ: TEVA[11]) is a global pharmaceutical company whose principal products are Copaxone for multiple sclerosis and Azilect for Parkinson’s disease,  respiratory products, and women’s health products. Even with growth in international sales show some promise, the Israeli drugmaker is giving its shareholders a tough pill to swallow with the loss of 14% in earnings since May of this year.

As of this writing, Louis Navellier did not own a position in any of the stocks named here.

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  1. AMGN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMGN
  2. GILD: http://studio-5.financialcontent.com/investplace/quote?Symbol=GILD
  3. CELG: http://studio-5.financialcontent.com/investplace/quote?Symbol=CELG
  4. BAX: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAX
  5. COV: http://studio-5.financialcontent.com/investplace/quote?Symbol=COV
  6. STJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=STJ
  7. TMO: http://studio-5.financialcontent.com/investplace/quote?Symbol=TMO
  8. JNJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNJ
  9. PFE: http://studio-5.financialcontent.com/investplace/quote?Symbol=PFE
  10. SNY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SNY
  11. TEVA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TEVA
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