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Vanguard Health Care Fund's Top Second Quarter Stocks

July 30, 2014
Monica Wolfe

Monica Wolfe

133 followers

Over the duration of the second quarter the Vanguard Health Care Fund purchased added four new stocks to its holdings. The fund now holds on to 88 stocks valued at $37,934 billion. The following companies are Vanguard's top five portfolio holdings as of the close of the second quarter.

Merck & Co. (MRK)

Vanguard Health Care Fund’s largest position goes to Merck & Co where the fund holds on to 33,889,948 shares. This position represents 5.2% of the fund’s portfolio and 1.16% of the company’s shares outstanding.

Over the past quarter Vanguard cut their holdings -4.85% by selling 1,726,900 shares of the company’s stock. They sold these shares somewhere near the average quarterly price of $57.16 per share. Since then the price per share is up about 0.8%.

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 operating margin is expanding, its revenue per share has been in decline over the past year and its dividend yield is near a 5-year low. The analysis also notes that the company’s price is sitting near a 10-year high and it has issued $10.6 billion of debt over the past three years.

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

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Merck & Co has a market cap of $169.73 billion. Its shares are currently trading at around $58.08 with a P/E ratio of 38.60, a P/S ratio of 4.00 and a P/B ratio of 3.40. 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.

Bristol-Myers Squibb Company (BMY)

The guru fund’s second largest holding goes to Bristol-Myers Squibb where they hold on to 36,197,961 shares. This position makes up for 4.6% of the fund’s total portfolio and 2.18% of the company’s shares outstanding.

Over the past quarter Vanguard upped their holdings 22.96% by purchasing 6,760,200 shares of the company’s stock. They purchased these shares somewhere near the estimated average quarterly price of $49.29 per share, and since then the price per share has dropped a slight -3.9%.

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 $84.75 billion. Its shares are currently trading at around $51.12 with a P/E ratio of 29.80, a P/S ratio of 5.20 and a P/B ratio of 5.30. The company had an annual average earnings growth of 0.70% over the past ten years.

UnitedHealth Group (UNH)

Vanguard’s third largest position is in UnitedHealth Group where they hold on to 20,115,900 shares of the company’s stock. Their position represents 4.3% of fund’s total portfolio and 2.05% of the company’s shares outstanding.

During the past quarter Vanguard increased their position 1.77% by purchasing 349,600 shares. They bought these shares in the second quarter price range of $74.95 to $82.34, with an estimated average quarterly price of $78.63. Since then the price per share has increased about 5.5%.

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:

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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 overvalued:

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UnitedHealth has a market cap of $81.28 billion. Its shares are currently trading at around $82.95 with a P/E ratio of 15.50, a P/S ratio of 0.70 and a P/B ratio of 2.60. 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.

AstraZeneca PLC (LSE:AZN)

The guru fund’s fourth largest holding goes to AstraZeneca where they hold on to 20,768,156 shares. This position makes up for 4.1% of the fund’s total portfolio and 1.64% of the company’s shares outstanding.

The fund upped their holdings 6.05% over the past quarter by purchasing a total of 1,184,722 shares of the company’s stock. Vanguard purchased these shares near the estimated average quarterly price of $42.98 per share. Since then the price per share is trading up about 1.4%.

Vanguard’s historical holding history:

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AstraZeneca’s historical revenue and net income:

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The analysis on AstraZeneca reports that the company’s revenue per share has been in decline over the past five years, its price is sitting near a 5-year high and its P/E, P/S and P/B ratios are all trading at near 5-year highs as well.

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

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AstraZeneca has a market cap of $54.57 billion. Its shares are currently trading at around $43.58 with a P/E ratio of 22.40, a P/S ratio of 3.58 and a P/B ratio of 2.15. The company holds a dividend yield of 4.07% and has seen an annual average earnings growth of 7.60% 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 15,716,666 shares of the company’s stock. Vanguard’s position represents 4.1% of their total portfolio and 5.85% of the company’s shares outstanding.

Over the past quarter Vanguard cut their holdings -23.65% by selling 4,867,100 shares of the company’s stock. He sold these shares near the estimated average quarterly price of $93.17 per share. Since this buy the price per share is trading up about 6.3%.

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 $26.99 billion. Its shares are currently trading at around $99.00 with a P/E ratio of 161.20 and a P/S ratio of 7.39.

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


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