Health care stocks are generally thought of as defensive plays where investors can put their money to weather a market storm like the one we’ve witnessed since the start of June. And while that is certainly true, there are also some smaller health care stocks that are much more volatile.
Today, I have three names in particular for you. These stocks all trade for less than $5 per share, and as such, they are prone to disproportionate losses when the market sells off. However, that also means they are likely to score you outsized gains when the market takes off again.
So if you believe the market is going to stage a comeback in the next few months, these little health care stocks may be some of this summer’s hottest tickets.
PHC Inc. (PHC)
National health care company PHC Inc. (AMEX: PHC) provides psychiatric services to individuals who have behavioral health disorders. Most of its patients deal with some sort of drug or alcohol dependency, and the company owns numerous outpatient facilities and psychiatric hospitals across the United States.
PHC stock is up % since the start of 2011, and it has soared 159% in the last 12 months. The penny stock also posted a quarterly revenue growth of 14% in its last income statement.
Genetic Technologies (GENE)
Genetic Technologies (NASDAQ: GENE) operates in three business segments: genetic testing, licensing and research. Based in Australia, GENE translates its genetic tests into products and services.
It is up an incredible 367% since last June. More recently, GENE has gained 152% in the last three months alone. With a 52-week range of 65 cents – $9.80, this health care stock could see much higher prices again.
Columbia Laboratories Inc. (CBRX)
Rounding out the list of health care stocks to buy is Columbia Laboratories Inc. (NASDAQ: CBRX), which develops bioadhesive drug delivery technologies. Its most well-known product is CRINONE 8%, which is marketed across the world.
This pharmaceutical company has watched its stock value climb 211% in the last year, compared to much smaller gains by the broader markets. More recently, CBRX is up 56% since the start of 2011. This penny stock is currently trading at nearly four times its 52-week low of 88 cents.
