The following are the top rated Healthcare stocks according to Validea’s Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
NOVO NORDISK A/S (ADR) (NVO) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Warren Buffett is 92% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Novo Nordisk A/S is a global healthcare company engaged in diabetes care. The Company is also engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The Company operates through two business segments: diabetes and obesity care, and biopharmaceuticals. The Company’s diabetes and obesity care segment covers insulin, GLP-1, other protein-related products, such as glucagon, protein-related delivery systems and needles, and oral anti-diabetic drugs. The Company’s biopharmaceuticals segment covers the therapy areas of hemophilia care, growth hormone therapy and hormone replacement therapy. The Company also offers Saxenda product to treat obesity. It offers a range of products, including NovoLog/NovoRapid; NovoLog Mix/NovoMix; Prandin/NovoNorm; NovoSeven; Norditropin, and Vagifem. As of December 31, 2016, it marketed its products in over 180 countries. Its regional structure consists of two commercial units: North America and International Operations.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
EARNINGS PREDICTABILITY: | PASS |
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DEBT SERVICE: | PASS |
RETURN ON EQUITY: | PASS |
RETURN ON TOTAL CAPITAL: | PASS |
FREE CASH FLOW: | PASS |
USE OF RETAINED EARNINGS: | PASS |
SHARE REPURCHASE: | NEUTRAL |
INITIAL RATE OF RETURN: | PASS |
EXPECTED RETURN: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
CORVEL CORPORATION (CRVL) is a small-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on Warren Buffett is 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: CorVel Corporation (Corvel) is a provider of workers’ compensation solutions for employers, third party administrators, insurance companies and government agencies. The Company offers its services as a bundled solution, which includes claims management, as a standalone service, or as add-on services to existing customers. The Company offers its services as a bundled solution, which includes claims management, as a standalone service, or as add-on services to existing customers. The Company’s network solutions include bill review, preferred provider organization (PPO) management, professional review, provider reimbursement, pharmacy services, directed care services, medicare solutions and clearinghouse services. The Company’s patient management services include claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, life care planning, disability management, liability claims management and auto claims management.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
EARNINGS PREDICTABILITY: | PASS | EARNINGS PREDICTABILITY: | PASS |
---|---|---|---|
DEBT SERVICE: | PASS | DEBT SERVICE: | PASS |
RETURN ON EQUITY: | PASS | RETURN ON EQUITY: | PASS |
RETURN ON TOTAL CAPITAL: | PASS | RETURN ON TOTAL CAPITAL: | PASS |
FREE CASH FLOW: | PASS | FREE CASH FLOW: | PASS |
USE OF RETAINED EARNINGS: | PASS | USE OF RETAINED EARNINGS: | FAIL |
SHARE REPURCHASE: | NEUTRAL | SHARE REPURCHASE: | PASS |
INITIAL RATE OF RETURN: | PASS | INITIAL RATE OF RETURN: | PASS |
EXPECTED RETURN: | PASS | EXPECTED RETURN: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
CHEMED CORPORATION (CHE) is a mid-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on Warren Buffett is 85% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Chemed Corporation purchases, operates and divests subsidiaries engaged in various business activities. The Company operates through two segments: the VITAS segment (VITAS) and the Roto-Rooter segment (Roto-Rooter). The Company’s VITAS provides hospice and palliative care services to its patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers. VITAS is the provider of hospice services in an industry dominated primarily by small, non-profit, community-based hospices. VITAS provides hospice care to Medicare beneficiaries participating in these managed care programs. A portion of its VITAS business is operated in the state of Florida. The Roto-Rooter segment provides plumbing, drain cleaning, water restoration and other related services to both residential and commercial customers.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
EARNINGS PREDICTABILITY: | PASS | EARNINGS PREDICTABILITY: | PASS | EARNINGS PREDICTABILITY: | PASS |
---|---|---|---|---|---|
DEBT SERVICE: | PASS | DEBT SERVICE: | PASS | DEBT SERVICE: | PASS |
RETURN ON EQUITY: | PASS | RETURN ON EQUITY: | PASS | RETURN ON EQUITY: | PASS |
RETURN ON TOTAL CAPITAL: | PASS | RETURN ON TOTAL CAPITAL: | PASS | RETURN ON TOTAL CAPITAL: | PASS |
FREE CASH FLOW: | PASS | FREE CASH FLOW: | PASS | FREE CASH FLOW: | PASS |
USE OF RETAINED EARNINGS: | PASS | USE OF RETAINED EARNINGS: | FAIL | USE OF RETAINED EARNINGS: | PASS |
SHARE REPURCHASE: | NEUTRAL | SHARE REPURCHASE: | PASS | SHARE REPURCHASE: | NEUTRAL |
INITIAL RATE OF RETURN: | PASS | INITIAL RATE OF RETURN: | PASS | INITIAL RATE OF RETURN: | PASS |
EXPECTED RETURN: | PASS | EXPECTED RETURN: | PASS | EXPECTED RETURN: | FAIL |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
CELGENE CORPORATION (CELG) is a large-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Warren Buffett is 82% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Celgene Corporation is an integrated global biopharmaceutical company. The Company, together with its subsidiaries, is engaged in the discovery, development and commercialization of therapies for the treatment of cancer and inflammatory diseases through solutions in protein homeostasis, immuno-oncology, epigenetics, immunology and neuro-inflammation. Its commercial-stage products include REVLIMID (lenalidomide), POMALYST/IMNOVID (pomalidomide), OTEZLA (apremilast), ABRAXANE (paclitaxel albumin-bound particles for injectable suspension), VIDAZA, azacitidine for injection (generic version of VIDAZA) and THALOMID (thalidomide). Its clinical trial activity includes trials across the disease areas of hematology, solid tumors, and inflammation and immunology. The Company also markets ISTODAX, which is an epigenetic modifier. The Company is also evaluating AG-221 (enasidenib) in combination with VIDAZA in newly diagnosed acute myeloid leukemia with isocitrate dehydrogenase-2 mutations.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
EARNINGS PREDICTABILITY: | PASS | EARNINGS PREDICTABILITY: | PASS | EARNINGS PREDICTABILITY: | PASS | EARNINGS PREDICTABILITY: | PASS |
---|---|---|---|---|---|---|---|
DEBT SERVICE: | PASS | DEBT SERVICE: | PASS | DEBT SERVICE: | PASS | DEBT SERVICE: | PASS |
RETURN ON EQUITY: | PASS | RETURN ON EQUITY: | PASS | RETURN ON EQUITY: | PASS | RETURN ON EQUITY: | PASS |
RETURN ON TOTAL CAPITAL: | PASS | RETURN ON TOTAL CAPITAL: | PASS | RETURN ON TOTAL CAPITAL: | PASS | RETURN ON TOTAL CAPITAL: | FAIL |
FREE CASH FLOW: | PASS | FREE CASH FLOW: | PASS | FREE CASH FLOW: | PASS | FREE CASH FLOW: | PASS |
USE OF RETAINED EARNINGS: | PASS | USE OF RETAINED EARNINGS: | FAIL | USE OF RETAINED EARNINGS: | PASS | USE OF RETAINED EARNINGS: | PASS |
SHARE REPURCHASE: | NEUTRAL | SHARE REPURCHASE: | PASS | SHARE REPURCHASE: | NEUTRAL | SHARE REPURCHASE: | PASS |
INITIAL RATE OF RETURN: | PASS | INITIAL RATE OF RETURN: | PASS | INITIAL RATE OF RETURN: | PASS | INITIAL RATE OF RETURN: | PASS |
EXPECTED RETURN: | PASS | EXPECTED RETURN: | PASS | EXPECTED RETURN: | FAIL | EXPECTED RETURN: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
Since its inception, Validea’s strategy based on Warren Buffett has returned 234.10% vs. 193.97% for the S&P 500. For more details on this strategy, click here
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world’s richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures — a cherry Coke, a good burger, and a good book are all near the top of the list — have been well-documented.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
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