"With high-quality stocks on sale, now seems an opportune time to look for bargains among small and midcap blue chips," suggests Richard Moroney.

In his Upside Stocks advisory, which uses the quantitative-based Quadrix ratings system, he says, "We've found several 'Best Buys' with superior year-ahead potential."

Here, the analyst looks at Aeropostale (NYSE: ARO), Catalyst Health (NASDAQ: CHSI) and Hornbeck Offshore (NYSE: HOS).

"One of my favor defensive sectors is healthcare," says Elliott Gue; the contributing editor to Personal Finance looks to Quality Systems (NSDQ: QSII), a company that helps automate medical records.

Quantitative analyst Richard Moroney also sees opportunity in the same niche sector. In his Upside newsletter, he looks to a competing play, Cerner (NASDAQ: CERN). Here are their reviews.

"The President made health care a centerpiece of his campaign, including investments in health care-related information technology (IT).

"Health care IT systems can save doctors' offices and hospitals significant administrative costs as well as prevent mistakes. In addition, some major health insurance firms are already putting heavy pressure on their physician networks to adopt these systems."

"Medical offices and hospitals are seeking to automate many functions, from storing patient records online to automatically submitting insurance claims for reimbursement.

"It's estimated that as much as 90% of health care records at smaller medical practices are still maintained in paper form, while even bigger hospitals keep close to half of their records manually.

"Quality Systems, a holding in our growth portfolio, is a leading provider of such systems. It sells software used to manage electronic patient records, billing, scheduling and other common administrative functions for medical and dental practices.

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"Amedisys (NASDAQ: AMED), a provider of home health services," notes Richard Moroney, whose Upside Stocks newsletter uses a quantitative system to select high growth, smaller cap issues.

"The company operates more than 500 locations, focuses on Medicare-eligible patients because of favorable reimbursement rates as well as a large and growing patient base.

"The U.S. Census Bureau estimates that some 8,000 Americans will become Medicare eligible each day beginning in 2011. By 2030, nearly 58 million baby boomers will be eligible for Medicare benefits.

"In 2007, nearly 90% of the company's revenue was derived from Medicare. "Acquisitions and market-share gains should fuel strong results. In addition, Amedisys should benefit from an aging population beset by chronic illnesses.

"The company has developed specialized services that focus on high-cost diseases and chronic conditions. An estimated one-half of the U.S. population will have a chronic condition in 2020, or nearly 160 million people.

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.

"One way to deal with a choppy market is to focus on steady performers with strong market positions in growing industries," says Richard Moroney.

In his Upside Stocks, a leading newsletter focused on small and mid-cap stocks,, he notes, "PetMed Express (NASDAQ: PETS), a leading nationwide pet pharmacy and retailer, fits the bill nicely." Here, the advisor offers his review.

"PetMed Express sells prescription (30% of fiscal 2007 revenue) and nonprescription medications and health products (70%) to retail customers ordering by phone, via the Internet, or through a catalog. The company's Web site generates nearly two-thirds of annual sales.

"Fiscal 2008 ending March should represent the firm's sixth consecutive year of at least 20% per-share profit growth. While earnings growth is expected to slow to about 10% in fiscal 2009, recent operating results suggest PetMed is capable of exceeding consensus expectations.

"PetMed is benefiting from strong market fundamentals and constructive trends. An estimated 63% of U.S. households own a pet, up from 56% in 1988. The U.S. dog and cat population is estimated at a staggering 163 million.