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Top Five Guru-Held Health Care Companies

September 24, 2013 | About:
Monica Wolfe

Monica Wolfe

122 followers
Using the GuruFocus Aggregated Portfolio Screener you can filter results to see what companies maintain the highest amount of guru ownership. By using this screener, we filtered down to see which healthcare companies are held by the most gurus. As of the second quarter, the following five health care companies are held by the largest number of gurus.

Johnson & Johnson (JNJ)


As of the close of the second quarter there were 42 guru owners of Johnson & Johnson. During the past quarter there were 11 gurus buying shares of JNJ and there were 25 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 87.18%%.

The top three guru shareholders of Johnson & Johnson:

1. Jeremy Grantham: 23,171,691 shares, representing 0.82% of the company’s shares outstanding and 5.2% of his total portfolio.

2. James Barrow: 17,156,379 shares, representing 0.61% of the company’s shares outstanding and 2.5% of his total portfolio.

3. PRIMECAP Management: 13,996,087 shares, representing 0.5% of the company’s shares outstanding and 1.7% of the fund’s total assets managed.

Johnson & Johnson is engaged in the research and development, manufacture and sale of a range of products in the health care field. It is a holding company, which has more than 250 operating companies conducting business in virtually all countries of the world.

Johnson & Johnson’s historical revenue and net income:

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The company recently announced that they product STELARA received FDA approval to treat active psoriatic arthritis.

The analysis on Johnson & Johnson reports:

· The operating margin is expanding.

· It has issued $3.3 billion of debt over the past three years.

· The price is nearing a 10-year high.

· JNJ has shown predictable revenue and earnings growth.

· The dividend yield is nearing a three-year low.

The Peter Lynch Chart suggests that the company is currently overvalued:

1380049917754.png

Johnson & Johnson has a market cap of $249.09 billion. Its shares are currently trading at around $88.39 with a P/E ratio of 19.60, a P/S ratio of 3.60 and a P/B ratio of 3.60. Johnson & Johnson had an annual average earnings growth of 6.3% over the past 10 years.

GuruFocus rated JNJ the business predictability rank of 3-star.

Pfizer (PFE)

As of the close of the second quarter there were 32 guru owners of Pfizer. During the past quarter there were nine gurus buying shares of PFE and there were 27 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 46.82%.

The top three guru shareholders of Pfizer:

1. Dodge & Cox: 69,191,798 shares, representing 1.03% of the company’s shares outstanding and 2.3% of their total portfolio.

2. James Barrow: 60,830,964 shares, representing 0.92% of the company’s shares outstanding and 2.9% of his total portfolio.

3. Jeremy Grantham: 58,022,697 shares, representing 0.88% of the company’s shares outstanding and 4.2% of his total portfolio.

Pfizer is a global pharmaceutical firm which develops and produces medicines and vaccines for a range of conditions which include areas of immunology, inflammation, oncology, cardiovascular and metabolic diseases, neuroscience and pain.

Pfizer’s historical revenue and net income:

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The company’s most recent quarterly results reported:

· Revenues of $13 billion and adjusted EPS of $0.56 and reported diluted EPS of $1.98.

· Repurchased $3.3 billion and $8.7 billion of common stock in Q2 and year-to-date, respectively.

· Accepted 405.1 million shares of common stock in exchange for remaining Zoetis interest.

· Announced plan to create separate, internal, global innovative and value businesses.

The analysis on Pfizer reports that the company’s revenue has been in decline over the past year, its price is nearing a five-year high and its operating margin is expanding.

The Peter Lynch Chart suggests that the company is currently undervalued:

1380051749308.png

Pfizer has a market cap of $191.06 billion. Its shares are currently trading at around $28.86 with a P/E ratio of 19.10, a P/S ratio of 3.70 and a P/B ratio of 2.40. The company had an annual average earnings growth of 4.9% over the past 10 years.

Pfizer has the business predictability rank of 3-star.

Merck & Co (MRK)

As of the close of the second quarter there were 32 guru owners of Merck & Co. During the past quarter there were 15 gurus buying shares of MRK and there were 14 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 36.38%.

The top three guru shareholders of Merck & Co:

1. Dodge & Cox: 50,697,146 shares, representing 1.73% of the company’s shares outstanding and 2.8% of their total portfolio.

2. Vanguard Health Care Fund: 35,919,648 shares, representing 1.23% of the company’s shares outstanding and 6.1% of the fund’s total assets managed.

3. James Barrow: 29,318,754 shares, representing 1% of the company’s shares outstanding and 2.3% of his total portfolio.

Merck & Co is a global health care company that delivers innovative health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures.

Merck’s historical revenue and net income:

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The company recently entered a license agreement with AstraZeneca for the investigational Oral WEE1 Kinase Inhibitor therapy for cancer. Merck was also recently named one of the top 100 companies to work for by working mothers.

The analysis on Merck reports that the company’s revenue has been in decline over the past year, the price is near a five-year high and that the company has issued $10.1 billion of debt in the past three years.

The Peter Lynch Chart suggests that Merck is currently overvalued:

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Merck & Co has a market cap of $139.73 billion. Its shares are currently trading at around $47.75 with a P/E ratio of 28.30, a P/S ratio of 3.30 and a P/B ratio of 3.00. The company had an annual average earnings growth of 1.9% over the past 10 years.

UnitedHealth Group (UNH)

As of the close of the second quarter there were 27 guru owners of UnitedHealth Group. During the past quarter there were 14 gurus buying shares of UNH and there were 15 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 34.35%.

The top three guru shareholders of UnitedHealth Group:

1. Vanguard Health Care Fund: 19,960,200 shares, representing 1.96% of the company’s shares outstanding and 4.8% of the fund’s total assets managed.

2. Chris Davis: 14,750,586 shares, representing 1.45% of the company’s shares outstanding and 2.5% of his total portfolio.

3. Meryl Witmer: 10,971,511 shares, representing 1.08% of the company’s shares outstanding and 3.8% of her total portfolio.

UnitedHealth is a diversified health and well-being company dedicated to helping people live healthier lives and making health care work better. UnitedHealthcare, through UnitedHealthcare and Optum, serve more than 80 million worldwide.

UnitedHealth’s historical revenue and net income:

1380053737850.png

The company’s third quarter results are set to be released on Oct. 17. The company was also named to the Dow Jones Sustainability North America and World Indices for the 15th year in a row.

The analysis on UnitedHealth reports that the company’s price is nearing a 10-year high, its revenue and earnings growth are consistently growing and its has also issued $5.4 billion over the past three years.

The Peter Lynch Chart suggests that the company is currently undervalued:

1380053766179.png

UnitedHealth has a market cap of $73.75 billion. Its shares are currently trading at around $72.45 with a P/E ratio of 13.80, a P/S ratio of 0.60 and a P/B ratio of 2.30. The company had an annual average earnings growth of 13.7% over the past ten years.

GuruFocus rated UnitedHealth the business predictability rank of 3.5-star.

Baxter International (BAX)

As of the close of the second quarter there were 27 guru owners of Baxter International. During the past quarter there were 9 gurus buying shares of BAX and there were 11 gurus making sells of their stake in the company. These gurus maintain a combined weighting of 20.48%.

The top three guru shareholders of Baxter International:

1. James Barrow: 3,550,586 shares, representing 0.65% of the company’s shares outstanding and 0.41% of his total portfolio.

2. Vanguard Health Care Fund: 3,179,300 shares, representing 0.59% of the company’s shares outstanding and 0.81% of the fund’s total assets managed

3. Tweedy Browne: 2,607,066 shares, representing 0.48% of the company’s shares outstanding and 4.5% of the fund’s total portfolio.

Baxter International is a diversified healthcare company. Through its subsidiaries, it develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions.

Baxter’s historical revenue and net income:

1380053264101.png

The analysis on Baxter reports that the company has shown predictable revenue and earnings growth, its price is nearing a 10-year high, the dividend yield is at a 10-year high and the company has issued $4.5 billion of debt over the past three years.

The Peter Lynch Chart suggests that the company is currently overvalued:

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Baxter International has a market cap of $38.67 billion. Its shares are currently trading at around $71.25 with a P/E ratio of 17.70, a P/S ratio of 2.80 and a P/B ratio of 5.30. The company had an annual average earnings growth of 11.4% over the past 10 years.

GuruFocus rated Baxter International the business predictability rank of 4.5-star.

You can check out other top held sectors of the market by using the Aggregated Screener here.

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Rating: 3.3/5 (4 votes)

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