Samuel Isaly (Trades, Portfolio) of Eaton Vance Worldwide Health Sciences Fund acquired nine new holdings in the third quarter ended Aug. 31. Five of the holdings had impacts greater than 2% on the portfolio.
The guru acquired 665,629 shares in Medtronic PLC (MDT, Financial), a Dublin-based medical device company, for an average price of $86.44 per share. The acquisition had a 4.22% impact on the portfolio.
Barrow, Hanley, Mewhinney & Strauss is Medtronic’s leading shareholder among the gurus with a stake of 21,090,262 shares. The stake is 1.53% of Medtronic’s outstanding shares and 2.79% of the guru’s total assets.
Medtronic has a price-earnings (P/E) ratio of 31.95, a forward P/E ratio of 17.54, a price-book (P/B) ratio of 2.26 and a price-sales (P/S) ratio of 4.08. GuruFocus gives Medtronic a Financial Strength rating of 5/10 and a Profitability and Growth rating of 8/10 with return on equity (ROE) of 7.05% that is higher than 63% of the companies in the Global Medical Devices industry and return on assets (ROA) of 3.57% that is higher than 62% of the companies in that industry.
Medtronic sold for $82.14 per share at market close Friday. The DCF Calculator gives Medtronic a fair value of $27.5.
The guru purchased 450,936 shares in Johnson & Johnson (JNJ, Financial), a New Jersey-based medical device and pharmaceutical company, for an average price of $120.55 per share. The transaction had a 3.92% impact on the portfolio.
Barrow, Hanley, Mewhinney & Strauss is Johnson & Johnson’s leading shareholder among the gurus with a stake of 13,210,591 shares. The stake is 0.48% of Johnson & Johnson’s outstanding shares and 2.44% of the guru’s total assets.
Johnson & Johnson has a P/E ratio of 20.40, a forward P/E ratio of 16.08, a P/B ratio of 4.37 and a P/S ratio of 4.58. GuruFocus gives Johnson & Johnson a Financial Strength rating of 7/10 and a Profitability and Growth rating of 8/10 with ROE of 21.97% that is higher than 87% of the companies in the Global Drug Manufacturers – Major industry and ROA of 11.69% that is higher than 84% of the companies in that industry.
Johnson & Johnson sold for $115.11 per share Friday. The DCF Calculator gives Johnson & Johnson a fair value of $60.46.
The guru invested in 701,207 shares in Shire PLC (LSE:SHP, Financial), a biopharmaceutical company with offices in Dublin and New Jersey, for an average price of 46.93 pounds ($58.10) per share. The deal had a 3.19% impact on the portfolio.
The purchase made Isaly the company’s leading shareholder among the gurus.
Shire has a P/E ratio of 138.67, a forward P/E ratio of 10.21, a P/B ratio of 1.77 and a P/S ratio of 4.73. GuruFocus gives Shire a Financial Strength rating of 4/10 and a Profitability and Growth rating of 8/10 with ROE of 0.57% that is higher than 84% of the companies in the Global Biotechnology industry and ROA of 0.26% that is higher than 83% of the companies in that industry.
Shire sold for 44.28 pounds per share Friday. The DCF Calculator gives Shire a fair value of 6.18 pounds.
The guru acquired 193,108 shares in McKesson Corp. (MCK, Financial), a New York-based pharmaceutical distribution company, for an average price of $189.7 per share. The transaction had a 2.59% impact on the portfolio.
Vanguard Health Care Fund (Trades, Portfolio) is McKesson’s leading shareholder among the gurus with a stake of 7,165,280 shares. The stake is 3.17% of McKesson’s outstanding shares and 2.58% of Vanguard’s total assets.
McKesson has a P/E ratio of 15.66, a forward P/E ratio of 10.38, a P/B ratio of 3.14 and a P/S ratio of 0.16. GuruFocus gives McKesson a Financial Strength rating of 6/10 and a Profitability and Growth rating of 8/10 with ROE of 21.13% that is higher than 96% of the companies in the Global Medical Distribution industry and ROA of 3.37% that is higher than 51% of the companies in that industry.
McKesson sold for $130.76 per share Friday. The DCF Calculator gives McKesson a fair value of $165.37 with a 21% margin of safety.
The guru invested in 247,643 shares in Zimmer Biomet Holdings (ZBH, Financial), a medical device company based in Indiana, for an average price of $124.44 per share. The deal had a 2.34% impact on the portfolio.
HOTCHKIS & WILEY is Zimmer Biomet’s leading shareholder among the gurus with a stake of 1,502,959 shares. The stake is 0.75% of Zimmer Biomet’s outstanding shares and 0.77% of HOTCHKIS & WILEY’s total assets.
Zimmer Biomet has a P/E ratio of 57.24, a forward P/E ratio of 11.63, a P/B ratio of 2.11 and a P/S ratio of 2.78. GuruFocus gives Zimmer Biomet a Financial Strength rating of 4/10 and a Profitability and Growth rating of 7/10 with ROE of 3.69% that is higher than 51% of the companies in the Global Medical Devices industry and ROA of 1.35% that is higher than 53% of the companies in that industry.
Zimmer Biomet sold for $103.01 per share Friday. The DCF Calculator gives Zimmer Biomet a fair value of $19.88.
Isaly’s other new buys in the quarter were Wright Medical Group NV (WMGI, Financial), CVS Health Corp. (CVS, Financial), Zoetis Inc. (ZNS, Financial) and Merck & Co. Inc. (MRK, Financial).
Disclosure: I do not own any stocks mentioned in this article.
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