Health and wellness doesn’t appear to be adversely affected by other negative stock trends—that’s great news for investors.
Are you ready to benefit from this rally?
Here are six ways to get started. Let’s begin with some must-buy large-cap healthcare stocks…
UnitedHealth’s earnings per share are impressive, along with a strong revenue growth, return on equity, overall stock performance, and increased net income of 1% to $1.62 billion.
Sales are healthy and have increased by 27% to $41.5 billion. This not only met investors’ expectations, it exceeded them.
Still, some investors are a bit wary. At the beginning of the regular trading season, this stock was down 4%, but that shouldn’t dissuade you from buying it.
Overall, there is every indication that UnitedHealth Group will continue to be successful over the long term.
With its ingenuity in navigating health trends, UnitedHealth Group is one of the must-buy stocks of the year.
Hot Healthcare Rally Stocks: MEDNAX (MD)
MEDNAX (MD) specializes in anesthesia, maternal-fetal, neonatal, and subspecialty services in the pediatric physician markets.
MEDNAX serves the following:
- More than 400 hospitals in the United States
- 2,750 physicians
- 350+ practices
- Has a presence in 35 states, as well as Puerto Rico
Over the past year, MEDNAX shares skyrocketed up by 48.85% by most recent reports. This is significant because it exceed the S&P 500 Index.
This stock is a buy for a variety of reasons…
For one, the current debt-to-equity ratio is low at 0.58 and has improved overall earnings per share by 13.9%, as reported last quarter.
It will be interesting to compare how MEDNAX fared in Q3 when it announces its earnings October 29.
Hot Healthcare Rally Stocks: Stryker (SYK)
Stryker (SYK), a medical devices and equipment company is active in more than
Products include reconstructive devices, medical and surgical tools/equipment, and neurotechnology and spine products.
What makes Stryker an attractive investment is its current debt-to-equity ratio of 0.41, an indicator that debt levels have been kept under control. This figure is below industry averages.
Stryker’s most recently recorded profit margin stands at 68.13%, an attractive selling point for investors.
With its recent acquisition of Turkey-based Muka Metal, Stryker will expand its reach in Turkey as well as Latin America, where Muka has a significant presence and market hold. Muka manufactures patient furniture, stretchers, hospital beds, and accessories.
Critics may point out Stryker’s weak operating cash flow; however, all of the benefits that this company has to offer offset this one negative.
Bottom line: this stock is a definite buy.
Now, let’s look at some robust mid-cap stocks to bank on…
Hot Healthcare Rally Stocks: VCA (WOOF)
Healthcare stocks are not just for industries that serve people.
If you’re an animal lover, consider investing in VCA (WOOF).
VCA provides healthcare services for more than 600 veterinary hospitals in the United States and Canada.
The low debt-to-equity ratio of 0.66 is an indicator that VCA has successfully managed debt levels. And when compared to the same quarter last year, operating cash flow has increased significantly by 20.86% to $45.16 billion.
Animal healthcare stocks are big business, especially when you consider up to 47 percent of households in the United States own dogs and approximately 37 percent own cats, according to the ASPCA.
If the current prediction holds true, Americans are expected to spend upwards of $58.5 billion on pet medical care this year.
For these reasons, VCA Inc. stock is a buy.
Hot Healthcare Rally Stocks: LHC Group (LHCG)
LHC Group (LHCG) provides post-acute care in conjunction with physicians, hospitals, and families—primarily for Medicare—nationwide.
For one, net income growth has increased by a remarkable 47.7% when compared to the same quarter last year. As a result, this stock has increased by 82.72%.
Impressive, to say the least.
Furthermore, LHC’s low debt-to-equity ratio of 0.12 is notable, along with its quick ratio of 1.58.
With a gross profit margin of 41.73%, LHCG is an attractive stock that shows profitability, strength, and the ability to cover short-term liquidity requirements.
With its recent acquisition of Halcyon Hospice LLC, LHC is on track to expand its reach into the hospice services industry.
Located in Cumming, GA, Halcyon is one of the heavy hitters in the hospice industry, operating mainly in the southeastern United States.
For all of these reasons, LHC Group is a buy.
Hot Healthcare Rally Stocks: AMN Healthcare (AHS)
AMN Healthcare Services (AHS) provides workforce and staffing solutions for clinicians, clients, and physicians in the United States. Its primary focus: managed services programs, recruitment process outsourcing, and consulting services.
Here’s why AMN Healthcare Services is a buy…
Reasonable management of debt levels is indicated by a debt-to-equity ratio of 0.79 and a decent quick ratio of 1.21.
Additionally, when compared to the same quarter a year ago, the net cash flow has increased exponentially by 305.91%. This stock is soaring. In fact, sales increased by 40% to $350.1 million.
When AMN announces earnings 11/05/15, it’s estimated that Q3 revenue will be approximately $365 million.
With projections of strong revenues that show no signs of slowing down, AMN is expected to enjoy a healthy growth trend for some time.
With whispers of a bear market emerging in the near future, it’s time to invest in stocks that continue to prosper.
Healthcare stocks—in both the human and pet care sectors—are investments that will keep your portfolio healthy and strong.
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This post originally appeared in mainstreetinvestor.com.
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