The Zacks Analyst Blog Highlights: Computer Programs And Systems, BioTelemetry, HMS, Amedisys And Molina Healthcare
Zacks Investment Research | Dec 27, 2018 07:31AM ET
For Immediate Release
Chicago, IL – December 27, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Computer Programs and Systems, Inc. (NASDAQ:CPSI) , BioTelemetry, Inc. (NASDAQ:BEAT) , HMS Holdings Corp. (NASDAQ:HMSY) , Amedisys, Inc. (NASDAQ:AMED) and Molina Healthcare, Inc. (NYSE:MOH) .
Here are highlights from Wednesday’s Analyst Blog:
5 Great Healthcare Stocks to Buy for 2019
In November, healthcare stocks emerged as investors’ favorites. The Health Care Select Sector SPDR (XLV) gained 8.2% over last month, emerging as the leader among the S&P 500’s 11 sectors. With stocks inching close to the bear-market territory, XLV is currently down 2.4% year to date, coming in at the third place behind utilities and communication services stocks.
Rapid innovation, major advances and the United States’ ageing population have managed to sustain the popularity of healthcare stocks. Further, this is a defensive option which has caught the fancy of investors in difficult market conditions. With the economy likely to weaken and a gridlocked Congress unlikely to make major legislative changes, picking select healthcare stocks looks like a smart strategy for 2019.
2018’s Challenges Leave Sector Largely Unscathed
Several roadblocks confronted healthcare this year and most of them had to do with the Affordable Care Act (ACA). The Trump administration has been trying to replace and repeal Obamacare since it began its term. And it succeeded to some extent this year, removing the individual mandate as part of its well-received tax cuts.
The abolishment of the individual mandate led a federal judge in Texas to declare that the ACA was unconstitutional. However, the law will remain in force until the time that all appeals are exhausted. Market watchers point out that time and again, the ACA has proved hard to kill. An appeals court is likely to overturn this latest ruling.
Prospects for 2019 Remain Bright
Meanwhile, voices calling for action on overpriced drugs were heard time and time again. However, a divided Congress will likely prevent any major legislative changes in the near future. Healthcare was a key issue for Democrats during this year’s mid-term polls and their House victories illustrate its emotive power among voters.
Also, 2018 was witness to heated mergers and acquisitions activity. Aetna (NYSE:AET) sealed a $70 billion merger with pharmacy major CVS Health (NYSE:CVS). Meanwhile, Cigna (NYSE:CI) acquired Express Scripts (NASDAQ:ESRX) for $54 billion.
These developments illustrate a trend which seeks to reduce healthcare costs by creating a single entity which offers both medical and drug benefits. The trend is likely to continue next year, invigorating the sector with further mergers and acquisitions activity.
Overall, 2019 is likely to be another year filled with innovations and new technologies. Players from outside the sector are also likely to step into the healthcare space. This is more than evident from the efforts of Amazon (NASDAQ:AMZN), JPMorgan (NYSE:JPM) and Berkshire Hathaway (NYSE:BRKa) to provide healthcare benefits to 1 million employees. Longer term, the venture is an attempt to enter the ever resilient $3.5 trillion healthcare industry.
Our Choices
As the year comes to a dismal close, the popularity of healthcare stocks among investors is likely to grow. Despite efforts to demolish the ACA, Obama’s signature healthcare law will likely remain intact. A lack of consensus on drug pricing controls is likely to prevail in the near future.
The prospects of healthcare will remain largely undimmed in 2019, thanks in no small measure to America’s ageing population. This is why it makes sense to add healthcare stocks to your portfolios for next year. However, picking winning stocks may be difficult.
This is where our Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.