New advances seem to be coming out every day in healthcare. We are developing new drugs, devices and techniques to improve and even extend our lives beyond what would have been thought possible not too many years ago.
Hospital management is way to make money off all the new medical technologies and procedures as well as profit from the rising need for healthcare as baby boomers age. The companies that run hospitals and provide the needed space are doing very well as a result.
Here are three healthcare stocks to buy:
HCA Holdings (HCA)
HCA Holdings (HCA) is one of the largest hospital and healthcare facilities operators. HCA own and operate 165 hospitals consisting of 159 general care hospitals, five psychiatric hospitals and one rehabilitation hospital. Additionally, HCA has 115 freestanding surgery centers in the United States and England.
HCA produced a positive earnings surprise of almost 50% in the most recent quarter and analysts have been upping their estimates for 2014 as well as 2015. After the most recent earnings report, Portfolio Grader noted the strong improvements and upgraded HCA stock to an “A.” HCA Holdings is a “strong buy” at the current price.
Omega Healthcare Investors (OHI)
Omega Healthcare Investors (OHI) is a real estate investment trust that owns long-term care facilities. At the end of the second quarter, Omega owned or held mortgages on 563 skilled nursing facilities, assisted living facilities and other specialty hospitals with approximately 63,733 licensed located in 37 states. Omega properties are operated by 49 third-party healthcare companies.
Analysts have been raising their expectations of OHI stock for both 2014 and 2015. Portfolio Grader noticed Omega’s continued strong performance and upgraded OHI stock to a “strong buy” in August. The REIT also pays you to own the shares as the current dividend yield is 5.5%.
LifePoint Hospitals (LPNT)
LifePoint Hospitals (LPNT) has carved out a nice niche owning hospitals in more rural and small towns of the United States. LifePoint owns 62 hospitals across the U.S. and is the only hospital in those towns where it operates. So, LifePoint has no competition for its services.
LPNT earnings in the most recent quarter were up 17% year over year and exceeded Wall Street’s expectations by more than 50%. After LifePoint’s positive surprise, analysts have been scrambling to raise their estimates for LifePoint for fiscal 2014 and 2105.
The strong performance and sparkling fundamentals caused Portfolio Grader to upgrade LPNT stock to an “A,” and LifePoint stock is a “strong buy” right now.
Proving the space needed to take care of people and develop the new technologies and products that are driving healthcare forward is a lucrative business, and investors should take note of the excellent fundamentals in this sector.
Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.