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Top Owned Health Care Stocks of the Fourth Quarter

March 07, 2014 | 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 health care companies are held by the most gurus. As of the fourth quarter, the following five health care companies are held by the largest number of gurus.

Johnson & Johnson (JNJ)

The most-held medical company is Johnson & Johnson with 42 guru shareholders. During the past quarter there were 17 gurus making buys and 20 gurus makings sells of their stake in JNJ. These gurus hold on to a combined weighting of 62.25%.

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. The company’s operating segments are focused in: consumer, pharmaceutical and medical devices and diagnostics.

Johnson & Johnson’s historical revenue and net income:

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The analysis on Johnson & Johnson reports that the company’s operating margin is expanding, its dividend yield is near a 5-year low and its price is near a 10-year high.

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

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Johnson & Johnson has a market cap of $263.99 billion. Its shares are currently trading at around $93.32 with a P/E ratio of 20.80, a P/S ratio of 3.80 and a P/B ratio of 3.69. The dividend yield of Johnson & Johnson is currently at 2.80%. Johnson & Johnson had an annual average earnings growth of 6.60% over the past ten years.

Pfizer (PFE)

The second most held guru medical stock is in Pfizer. There are 33 guru shareholders with eleven of those making buys along with 20 gurus making sells of their stock in the company. These gurus hold a combined weighting of 42.17%.

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 analysis on Pfizer reports that the company’s revenue has been in decline over the past year, the dividend yield is near a 5-year low, the price is near a 5-year high and its operating margin is expanding.

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

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Pfizer has a market cap of $207 billion. Its shares are currently trading at around $32.43 with a P/E ratio of 8.90, a P/S ratio of 4.30and a P/B ratio of 2.80. Pfizer’s stock currently holds a dividend yield of 3.20%. The company had an annual average earnings growth of 4.80% over the past ten years.

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

Merck & Co (MRK)

The third most guru-held medical stock of the third quarter is in Merck & Co. Over the past quarter there were 31 guru owners with 12 gurus making buys and 14 gurus making sells of their stake in the company. These gurus hold a combined weighting of 30.21%.

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 analysis on Merck reports:

  • The company has issued $8.7 billion of debt over the past three years.
  • The revenue has been in decline over the past year.
  • The price is sitting near a 5-year high.
  • The company’s asset growth is currently faster than its revenue growth.

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

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Merck & Co has a market cap of $169 billion. Its shares are currently trading at around $57.47 with a P/E ratio of 38.50, a P/S ratio of 3.90 and a P/B ratio of 3.10. The company had an annual average earnings growth of 1.80% over the past ten years.

Medtronic (MDT)

The fourth largest guru-held position goes to Medtronic where there are currently 25 guru owners of the company. There were 13 gurus making buys and there were eight gurus making sells of their stake in the company. These gurus hold a combined weighting of 22.48%.

The company is engaged in providing medical technology- alleviating pain, restoring health, and extending life for people. Medtronic develops, manufactures, and markets its medical devices in more than 140 countries.

Medtronic’s historical revenue and net income:

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The analysis on Medtronic reports that the company has shown predictable revenue and earnings growth as well as an expanding operating margin. It also notes that the company’s dividend yield is near a 3-year low, it has issued $411 million in debt over the past three years and the price is sitting at around its 10-year high.

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

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Medtronic has a market cap of $59.96 billion. Its shares are currently trading at around $59.91 with a P/E ratio of 16.10, a P/S ratio of 3.60 and a P/B ratio of 3.10. The company had an annual average earnings growth of 75.60% over the past ten years.

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

UnitedHealth Group (UNH)

The fifth largest guru-held position goes to UnitedHealth Group where there are currently 24 guru owners of the company. There were 16 gurus making buys and there were seven gurus making sells of their stake in the company. These gurus hold a combined weighting of 27.90%.

UnitedHealth Group is a health and well-being Company helps people live healthier lives and help make health care work better. The company is helping individual's access quality care at an affordable cost, simplifying health care administration and delivery, as well as strengthening the physician/patient relationship.

UnitedHealth’s historical revenue and net income:

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The analysis on UnitedHealth reports that the company’s price is at a 10-year high, its P/S ratio is close to a 5-year high and the company has issued $5.4 billion of debt, but overall its debt level has been deemed acceptable.

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

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UnitedHealth has a market cap of $76.56 billion. Its shares are currently trading at around $77.40 with a P/E ratio of 14.70, a P/S ratio of 0.60 and a P/B ratio of 2.40. UnitedHealth had an annual average earnings growth of 19.00% over the past five years.

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

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