Most of the global market’s sectors have been suffering from the economic slowdown while the health care sector has emerged as a safe environment. Year to date the SPDR S&P 500 ETF increases more than 6%. Meanwhile, the Health Care SPDR exchange-traded fund has been somewhat flat. However, according to analysts, the sector will perform in greatly various ways as businesses have the greatest potential due to innovative devices and new drugs while others’ earnings will take a hit. The following are top health care stocks to buy.
Novo Nordisk (OMX: NOVO B, NYSE: NVO) has become one of the world’s leading companies in diabetes cares. It accounts for 71% of total sales of insulin in China which is one of Asian countries with incidence of diabetes on the rise. Fortune has named Novo Nordisk in the list of 100 Best companies to work for 2010.
The Denmark-headquartered company has international production facilities in seven countries.
Perrigo, which manufactures and distributes OTC and general prescription pharmaceuticals, active pharmaceutical ingredients, and nutritional products, is projected to benefit from its OTC generic drug business. According to Roosevelt Investments Portfolio Manager John Roscoe, the world’s leading healthcare supplier has a 70% market share in OTC store-brand drugs.
Perrigo’s primary markets and locations of logistics operations include the United States, Mexico, and the United Kingdom.
Express Scripts, Inc. (NASDAQ: ESRX) will benefit from the boom in the generic drug market amid more big companies losing their patents on blockbuster drugs.
Missouri-based company is a Fortune 100 company.
Celgne Corporation (NASDAQ: CELG) completed its acquisition of Abraxis in June 2010. Besides manufacturing drug therapies for cancer and inflammatory disorders, the company is ambitious to expand the treatment into other forms of the disease. Celgene is expected to outperform its biotech peer over the upcoming few quarters.
Celgene and Abraxis BioScience Inc. signed a definitive agreement in June 2010.
UnitedHealth Group (NYSE: UNH), headquartered in Minnetonka, Minnesota, offers a spectrum of services and products through seven operating businesses namely AmeriChoice, UnitedHealthcare, OptumHealth, Ovations, Uniprise, Ingenix, and Prescription Solutions. The company posted a 2008 net income of $ 3 billion.
UnitedHealth Group is believed to be one of the long-term survivors of the health care reform.
Baxter International Inc. is mainly engaged in manufacturing products to treat kidney disease, hemophilia, and other chronic and acute medical conditions. Its sales reached $ 12.6 billion last year.
According to Cynthia R. Axelrod, an analyst for Glenmede Investment Management, the stock of Baxter International Inc. (NYSE: BAX) is driven by the growing demand for plasma.
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Metal companies are expected to be under pressure in the short term, says Robert Aspin, Head Equities Investment Strategy at Standard Chartered Bank. He expects consolidation in the metals space based on China’s economic outlook. He is underweight consumer staples as they have expensive valuations, but tells investors that it is a safe way to play Indian markets.
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