Health care has long been considered a recession-resistant business. Given the current economic challenges, it's little surprise that in our survey of favorite stocks for the coming year, a number of leading advisors turned to this classic defensive sector.
In this year's Top Stock Picks from 75 advisors report, we found an intriguing group of medical-related stocks, from speculation in emerging biotech to well-established pharmaceutical firms, and from medical products makers to medical services firms focused on increasing health care efficiency and early disease detection.
Mike Cintolo, editor of The Cabot Market Letter, thinks Myriad Genetics (NASDAQ: MYGN) could be a "big winner in 2009," The company is a lead in the new field of cancer predisposition testing. For Mike's full report, read Top Stock Picks '09: Myriad Genetics.
Chuck Carlson, editor of The DRIP Investor, sees both quality and potential in Bristol-Myers Squibb (NYSE: BMY). For Chuck's full report, read Top Stock Picks '09: Bristol-Myers Squibb.
John Reese, editor of Validea, turns to Johnson & Johnson (NYSE: JNJ), which passes his "screen" for stocks that would meet the investment criteria of Warren Buffett and Peter Lynch. For John's full report, read Top Stock Picks '09: Johnson & Johnson.
Alan Newman, editor of CrossCurrents is cautious on the general market, but when pushed for a favorite idea, considers Pfizer (NYSE: PFE) a solid buy in light of its "huge cash hoard and hefty 7.5% yield." For Alan's full report, read Top Picks '09: Pfizer.
Richard Moroney, editor of Dow Theory Forecasts looks to Biogen Idec (NASDAQ: BIIB), a leading player in biotechnology and drug development. The stock has been volatile due to its drug Tysabri, an effective but controversial treatment for multiple sclerosis. For Richard's full report read Top Stock Picks '09: Biogen Idec.
In his small cap focused services, Upside, Richard Moroney selects Amedysis (NASDAQ: AMED), a leader in home health care services -- a stock that earns a score of 98 out of 100 on his quantitative ranking scale. For Richard's full report read Top Stock Picks '09: Amedysis.
For his 2009 favorite, Sy Harding -- editor of Street Smart Report -- steps up to Zimmer Holdings (NYSE: ZMH), which makes orthopedic implants such as joint and spinal replacements. Trading at 1.6 times book and 9.5 times sales, the advisor says, "The stock is on the bargain table." For Sy's full report, read Top Stock Picks '09: Zimmer Holdings.
In The Dave Dyer Newsletter, the growth stock advisor looks to HMS Holdings (NASDAQ: HMSY), a fast-growing stocks involved in assisting in Medicaid billing practices. Dyer says, "The stock's outlook improves when the economy declines." For Dave's full report, read Top Stock Picks '09: HMS Holdings.
A more speculative idea can be found from Timothy Lutts, in his Cabot Stock of the Month, looks at Emergent Biosolutions (NYSE: EBS), which is known for its work in anthrax vaccines and its ongoing development of other vaccines that could play a role in the government's battle against bio-terrorism. For Timothy's full report, read Top Stock Picks '09: Emergent BioSolutions.
Looking to Asia, Benson George favors small cap medicinal and diagnostic products maker China Sky Medical (NASDAQ: CSKI). In his The Growth Report, he notes, "The stock's forward p/e of 7 is remarkably low." For Benson's full report, read Top Stock Picks '09: China Sky One Medical.
You can see all of the favorite stocks chosen by 75 newsletter advisors in our post, Top Stock Picks '09.
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Reader Comments (Page 1 of 1)
1-06-2009 @ 4:56AM
sgentilejr said...
With all of the layoffs taking place tody more and more people will be without health care coverage and they will reduce and put off their visits for medical care.
As a result the entire health care industry could take a big negative hit during 2009