Healthcare Stocks

[EricL]

I put up a post about some good things I'm seeing in a few of my healthcare related stocks.

Finding Green Shoots Among My Healthcare Stocks

Discussion mostly covers OHI, CVS, ABT, GILD and AMGN.

Enjoy!

[DividendGarden]

Great article, and I added to GILD and CVS over the last few weeks.

[EricL]

My article covering the Top Ten Healthcare Stocks For Dividend Growth And Income was just posted on Seeking Alpha.

It has my 23 company watch list showing my valuation targets, dividend growth predictions, and 5YR total return projections for each company.

I also have expanded discussion on the top ten stocks at current prices.

Enjoy!

[DividendGarden]

Good article, and I agree on GILD. It's difficult to project going forward, but it's still cheap despite expectations of negative EPS growth for the next few years. I'm happy to hold.

[EricL]

(04-10-2017, 06:42 PM)DividendGarden Wrote: Good article, and I agree on GILD. It's difficult to project going forward, but it's still cheap despite expectations of negative EPS growth for the next few years. I'm happy to hold.

GILD is definitely an enigma. I'm guessing it will continue to tread water until it finally comes out with a quarter of revenue growth again. That might be several quarters away yet until it can get HCV to stabilize. I've been trying to be patient and look at the big picture rather than this current blip. With a 25+ year time frame for me, I think GILD will do just fine in the long run.

[divmenow]

Eric thanks for the great article. I just have one question. ABT has such a high PE. Can it sustain that? I'm looking to get in but am thinking after such a big run up the stock has to come down a bit more. Thoughts?

[EricL]

(04-13-2017, 09:02 AM)divmenow Wrote: Eric thanks for the great article. I just have one question. ABT has such a high PE. Can it sustain that? I'm looking to get in but am thinking after such a big run up the stock has to come down a bit more. Thoughts?

ABT's PE is 17.4 based on 2017 earnings estimates, so it may be a little high, but not outrageously so. Compared with BDX at 19.4, BAX at 24.5, MDT at 17.5, STE at 18.7 it seems reasonable compared to some of its peers.

It is a little tough to gauge what "normal PE" is considering its fairly recent split with ABBV, the takeover of STJ, and ongoing drama with the potential ALR acquisition.

Overall, I'd say ABT is on the high side of fair value but not crazy so. 

This isn't a price I'd jump all-in on, but if you wanted to buy a 1/4 or 1/2 position it's a place to start. You can always add again down the road if there is a big drop.

That said, looking at the chart ABT has traded between $38 and $45 several times in the last two years, if you are patient you may get a chance at another pullback.

Sorry for the rambling non-answer, but those are my $0.02 anyways!

[divmenow]

Makes sense Eric thanks. The reason why I asked about the high PE is because yahoo has it at 45 and Google at 60. I thought that was way off which is why I asked lol. But I will wait a bit to get in. Meanwhile BMY seems cheap and has a nice 3% yield. BAX I'm looking to get into as well but is has had such a run-up.

[EricL]

My latest update on the Healthcare sector was posted on Seeking Alpha this morning.

Updated spreadsheet of my twenty-five stock watch list, and my top ten picks at current valuations.

Top Ten Healthcare Stocks For Dividend Growth & Income

Enjoy!

[fenders53]

(07-06-2020, 01:47 PM)EricL Wrote: My latest update on the Healthcare sector was posted on Seeking Alpha this morning.

Updated spreadsheet of my twenty-five stock watch list, and my top ten picks at current valuations.

Top Ten Healthcare Stocks For Dividend Growth & Income

Enjoy!

Thanks again.  I always enjoy your articles.  Fast graphs are always insightful, and you don't make up another dozen charts, just for the sake of making charts. 

I hold similar views on a lot of your top ten.  I have a large position in PFE and growth prospects remain uninspiring.  I think I will continue to sell covered calls on part of my position and lighten it up some.  I may just have to accept I am going to have to pay a higher PE when I move the funds to other healthcare stocks.