7 Healthcare Stocks That Are Coming to Life

These seven healthcare stocks are on the move Monday

By Anthony Mirhaydari, InvestorPlace Market Strategist

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U.S. equities continue to churn near major technical resistance levels — S&P 500 2,800 and 25,000 on the Dow Jones Industrial Average — as investors digest a heavy serving of headlines.

These include everything from trade war emanations to President Donald Trump to the ongoing flow of second-quarter earnings reports. Indeed, there are a lot of catalysts in play.

To aid the chaos, healthcare stocks are inching higher. The Health Care Select SPDR (NYSEARCA:XLV) returning to levels not seen since early February. The iShares Biotechnology (NYSEARCA:IBB) is challenging its January high, threatening to push to levels not seen since the summer of 2015.

With all that in mind, here are seven healthcare stocks on the move:

Healthcare Stocks to Buy: Amneal Pharmaceuticals (AMRX)

Amneal Pharma (NYSE:AMRX) shares are jumping above their 200-day moving average today, returning to the highs last seen in June which marked the upper end of a trading range going back to last summer.

Investors have cheered a batch of good news lately, with the FDA granting approval for its generic Potassium Chloride oral solution as well as its generic version of Cytoxan, an anti-cancer chemotherapy drug.

Analysts at FBR recently initiated coverage with a Buy rating, looking for a $26 price target on organic growth, cost synergies, and balance sheet deleveraging.

Healthcare Stocks to Buy: GlaxoSmithKline (GSK)

GlaxoSmithKline (NYSE:GSK) shares are in the process of testing double-top resistance formed over the last two months, setting up a breakup and over the highs seen in each of the last four years in a bid to return to levels not seen since 2014.

There are reports the company is considering a possible split, spinning off its consumer division amid pressure from investors.

The company will next report results on July 25, with analyst looking for earnings of 26 cents per share on revenues of $7.2 billion.

When the company last reported on April 25, earnings of 25 cents per share beat estimates by a penny on a 2.2% decline in revenues.

Healthcare Stocks to Buy: Horizon Pharma (HZNP)

Horizon Pharma (NASDAQ:HZNP) shares have been on a tear, rising some 50% from their loss in May to return to levels last seen in 2016, shaking off a downgrade from analysts at Citigroup back in June. The company, based in Ireland, focuses on treatments for rare and thematic diseases.

The company will next report results on August 8 before the bell. Analysts are looking for earnings of 31 cents per share on revenues of $276 million. When the company last reported on May 9, earnings of three cents per share missed estimates by three cents on a 1.4% rise in revenues.

Healthcare Stocks to Buy: Baxter International (BAX)

Baxter International (NYSE:BAX) shares are challenging their early June highs, capping a doubling from their early 2016 lows.

The company, a maker of dialysis therapies and services, recently received a resumption of coverage from Piper Jaffray with a Buy rating. Management is optimistic, with strong forward guidance forecasting top-line growth of upwards of 8% on a year-over-year basis.

The company will next report results on July 26 before the bell. Analysts are looking for earnings of 71 cents per share on revenues of $2.8 billion. When the company last reported on April 26, earnings of 70 cents per share beat estimates by eight cents on an 8.2% rise in revenues.

Healthcare Stocks to Buy: Edwards Lifesciences (EW)

Edwards Lifesciences (NYSE:EW) shares are challenging their June high, extending to new highs and capping a 50%+ move off of its October. Analyst coverage has been pouring in, with Bernstein and Raymond James both assigning buy ratings. The company develops products and technologies to treat structural heart disease.

The company will next report results on July 26 after the close. Analysts are looking for earnings of $1.13 per share on revenues of $968.3 million. When the company last reported on April 24, earnings of $1.22 beat estimates by 11 cents on a 6.2% rise in revenues.

Healthcare Stocks to Buy: Henry Schein (HSIC)

Henry Schein (NASDAQ:HSIC) shares are rallying to test the upper end of its year-to-date trading range, setting up a run back to its mid-2017 record. There are reports of activist-related speculation making the rounds as management focuses on cutting expenses and boosting profitability.

The company will next report results on August 7 before the bell. Analysts are looking for earnings of $1.01 per share on revenues of $3.3 billion. When the company last reported on May 8, earnings of 95 cents per share beat estimates by three cents on a 10.2% rise in revenues.

Healthcare Stocks to Buy: Tenet Healthcare (THC)

Tenet Healthcare (NYSE:THC) shares are surging on Monday, rising more than 9% to test its June highs — capping more than a 2x rise off of its December lows.

The rally returns prices to levels not seen since 2015. The company operates hospitals, clinical labs, and pharmacies. Investors have been betting that growth acceleration will drive an expansion of earnings multiples.

The company will next report results on August 6 after the close. Analysts are looking for earnings of 23 cents per share on revenues of $4.6 billion. When the company last reported on April 30, earnings of 57 cents per share beat estimates by 61 cents on a 2.4% decline in revenues.

Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.


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