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Vanguard Health Care Fund's Top Quarterly Holdings

Monica Wolfe

Monica Wolfe

118 followers

Over the duration of the first quarter the Vanguard Health Care Fund purchased added three new stocks to its holdings. The fund now holds on to 86 stocks valued at $35.6 billion. The following companies are Vanguard's top portfolio holdings.

Merck & Co (MRK)

Vanguard Health Care Fund’s largest position goes to Merck & Co where the fund holds on to 35,616,848 shares. This position represents 5.7% of the fund’s portfolio and 1.22% of the company’s shares outstanding.

Over the past quarter Vanguard cut their holdings -2.58% by selling 641,700 shares of the company’s stock. They purchased these shares somewhere near the average quarterly price of $54.14 per share. Since then the price per share is up about 8.2%.

Vanguard Health Care’s historical holding history:

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Merck & Co is a global health care company that delivers 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 & Co’s historical revenue and net income:

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The analysis on Merck & Co reports that the company’s revenue has been in decline over the past year, it has issued $10.1 billion of debt over the past three years and its dividend yield is sitting near a 5-year low.

The Peter Lynch Chart suggests that Merck & Co is currently overvalued:

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Merck & Co has a market cap of $172.2 billion. Its shares are currently trading at around $58.56 with a P/E ratio of 40.10, a P/S ratio of 4.00 and a P/B ratio of 3.50. Merck currently holds a dividend yield of 3.00%. The company had an annual average earnings growth of 3.10% over the past ten years.

Forest Laboratories (FRX)

Vanguard’s second largest holding is in Forest Laboratories where the fund holds on to a total of 20,583,766 shares of the company’s stock. Vanguard’s position 5.3% of their total portfolio and 7.67% of the company’s shares outstanding.

Over the past quarter Vanguard cut their holdings -22.81% by selling 6,083,100 shares of Forest Laboratories’ stock. They sold these shares near the estimated average quarterly price of $79.87 per share. Since then the price per share has increased approximately 15.1%.

The fund’s historical holding history:

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Forest Laboratories develops, manufactures and sells branded forms of ethical drug products most of which require a physician's prescription.

Forest Laboratories’ historical revenue and net income:

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The analysis on Forest Laboratories reports that the company has no debt, its revenue has been in decline over the past three years and its price is sitting at a 5-year high.

Also over the past year the company named a new President and CEO. Forest Laboratories named former CEO of Bausch + Lomb Brenton Saunders as the company’s new leader. Saunders took on his new role on Oct. 1, 2013.

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

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Forest Laboratories has a market cap of $24.9 billion. Its shares are currently trading at around $91.91 with a P/S ratio of 7.30 and a P/B ratio of 4.20.

UnitedHealth Group (UNH)

Vanguard’s third largest position is in UnitedHealth Group where they hold on to 29,437,761 shares of the company’s stock. Their position represents 4.3% of fund’s total portfolio and 1.79% of the company’s shares outstanding.

During the past quarter Vanguard decreased their position -1.13% by selling 225,700 shares. They sold these shares near the first quarter average quarterly price of $75.10. Since then the price per share has dropped about -0.1%.

Vanguard’s historical holding history:

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UnitedHealth is a health and well-being company that 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; strengthening the physician/patient relationship; and empowering physicians, health care professionals, consumers, and employers in the health system with actionable data to make better, more informed decisions.

UnitedHealth’s historical revenue and net income:

The analysis on UnitedHealth reports that the company’s price is nearing a 10-year high, its dividend yield is at a 10-year high and it has shown predictable revenue and earnings growth.

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

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UnitedHealth has a market cap of $74.23 billion. Its shares are currently trading at around $75.04 with a P/E ratio of 13.40, a P/S ratio of 0.60 and a P/B ratio of 2.20. The company had an annual average earnings growth of 13.70% over the past ten years.

GuruFocus rated UnitedHealth the business predictability rank of 4.5-star.

Bristol-Myers Squibb (BMY)

The guru fund’s fourth largest holding goes to Bristol-Myers Squibb where they hold on to 24,459,861 shares. This position makes up for 4% of the fund’s total portfolio and 1.49% of the company’s shares outstanding.

Over the past quarter Vanguard upped their holdings in Bristol-Myers Squibb 20.35% by purchasing 4,977,900 shares. The fund purchased these shares near the average quarterly price of $53.21 per share, and since then the price per share has dropped approximately -5.9%.

Vanguard Health Care Fund (Trades, Portfolio)’s historical holding history:

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Bristol-Myers Squibb is a biopharmaceutical company engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products. The Company operates in one segment: Biopharmaceuticals.

Bristol-Myers Squibb’s historical revenue and net income:

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The analysis on Bristol-Myers Squibb reports that the company’s revenue has been in decline over the past year, its asset growth is currently faster than its revenue growth and its Piotroski F-Score is high, indicating a healthy situation for the company.

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

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Bristol-Myers Squibb has a market cap of $82.66 billion. Its shares are currently trading at around $50.09 with a P/E ratio of 32.30, a P/S ratio of 5.00 and a P/B ratio of 5.80. The company had an annual average earnings growth of 0.70% over the past ten years.

Check out Vanguard Health Care Fund’s complete fourth quarter portfolio here. Also click here to try a free 7-day premium membership trial.


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