U.S. equities are coming under some pressure on Friday, as investors cool their heels after a run to new record highs. A surprisingly strong Q1 GDP report raised a lot of eyebrows and is calling into question hopes of Federal Reserve interest rate cuts. In fact, with energy prices rising powerfully in recent weeks, and with the economy catting a tailwind, further rate hikes cannot be dismissed.
This whipsawing of sentiment is resulting in some profit-taking. And some sector rotation as well.
Energy stocks, which have been hot, are cooling a bit after President Trump said he called OPEC and they are going to ramp production in response to its efforts to cut oil exports out of Venezuela and Iran. In their place, health care stocks are perking up.
Here are four health care stocks in the group that are worth a look now:
Johnson & Johnson (JNJ)
Shares of Johnson & Johnson (NYSE:JNJ) look ready to push up and out of their three-month consolidation range with a challenge of triple-top resistance near the $140-a-share level. Watch for a move to the December high, which would be worth a gain of nearly 6% from here. The company announced earlier this week that it would increase its quarterly dividend by more than 5%.
The company will next report results on July 16 before the bell. Analysts are looking for earnings of $2.42 per share on revenues of $20.3 billion. When the company last reported results on April 16, earnings of $2.1 beat estimates by 6 cents on a 0.1% rise in revenues.
Align Technology (ALGN)
Shares of Align Technology (NASDAQ:ALGN), a medical device company behind products like Invisalign, are breaking out of a month-long flirtation with its 200-day moving average returning to levels not seen since late October. Watch for a return to the highs seen in September, which would be worth a gain of nearly 30% from here.
The company will next report results on July 24 after the close. Analysts are looking for earnings of $1.5 per share on revenues of $596.3 million. When the company last reported on April 24, earnings of 89 cents per share beat estimates by 6 cents on a 25.7% rise in revenues.
Quest Diagnostics (DGX)
Shares of Quest Diagnostics (NYSE:DGX) are pushing up and over their 200-day moving average, challenging the highs set back in November. This has set up a roll-up to the upper end of a sideways range that goes back to early 2017. Shares were recently upgraded by Jefferies analysts, who are looking for a price target of $107.
The company will next report results on July 23 before the bell. Analysts are looking for earnings of $1.7 per share on revenues of $1.95 billion. When the company last reported on April 23, earnings of $1.40 beat estimates by 2 cents on a 0.4% rise in revenues.
Henry Schein (HSIC)
Shares of Henry Schein (NASDAQ:HSIC), a provider of health care products and services to dental offices, is enjoying a share price breakout to levels not seen since early December. Powered with momentum from a move above both its 50-day and 200-day moving averages, watch for a challenge of recent highs near $70, which would be worth a gain of more than 10% from here.
The company will next report on May 7 before the bell. Analysts are looking for earnings of 76 cents per share on revenues of $3.3 billion. When the company last reported on Feb. 20, earnings of $1.12 beat estimates by a penny on a 1.7% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
