5 Health Care Stocks Gurus Are Buying

Seattle Genetics tops the list

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Sep 17, 2018
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According to the GuruFocus All-In-One Screener, the following health care stocks are popular among guru investors.

Eight gurus are invested in Seattle Genetics Inc. (SGEN, Financial). The biotech company develops therapies for the treatment of cancer. It has a market cap of $12.41 billion. Its revenue of $575.66 million has climbed 26.40% over a 10-year period.

The stock is trading with a price-book ratio of 8.97. As of Friday, the price of $78 is 2.25% below its 52-week high and 61.34% above its 52-week low. Over the last 10 years, it has returned a gain of 551%.

The company’s largest shareholder among the gurus is PRIMECAP Management (Trades, Portfolio) with 9.12% of outstanding shares, followed by Manning & Napier Advisors Inc. with 1.62% and the Vanguard Health Care Fund (Trades, Portfolio) with 1.2%.

Nine gurus have positions in Incyte Corp. (INCY, Financial).The company’s products are used to treat patients with intermediate or high-risk myelofibrosis. It has a market cap of $14.28 billion and its revenue of $1.72 billion has grown 54.90% over the last 10 years.

The stock is trading with a price-book ratio of 8.23. The current price of $68 is 46% below its 52-week high and 11.80% above its 52-week low. Over the past decade, it has returned a gain of 661%.

The Vanguard Health Care Fund is the largest guru shareholder of the company with 5.01% of outstanding shares, followed by Frank Sands (Trades, Portfolio) with 2.25% and Steven Cohen (Trades, Portfolio) with 0.61%.

Seven gurus are invested in Alnylam Pharmaceuticals Inc. (ALNY, Financial). The company develops novel therapeutics based on RNA interference, or RNAi. It has a market cap of $9.78 billion. Its revenue of $106.83 million has fallen 13% over the past decade.

The stock is trading with a price-book ratio of 6.03. The current price of $97 is 38.86% below its 52-week high and 26.36% above its 52-week low. Over the past decade, it has returned a gain of 237%.

The company’s largest guru shareholder is the Vanguard Health Care Fund with 7.73% of outstanding shares, followed by Dodge & Cox with 4.62%, Cohen with 1.35% and John Griffin (Trades, Portfolio) with 1.33%.

Seven gurus have positions in Quidel Corp. (QDEL, Financial). The company, which manufactures rapid diagnostic tests, has a market cap of $2.87 billion. Its revenue of $438 million has increased 6.20% per annum over the past decade.

The stock is trading with a price-book ratio of 7.48. The price of $73.53 is 4.91% below its 52-week high and 123.61% above its 52-week low. Over the last 10 years, it has returned a 352% gain.

With 1.38% of outstanding shares, Mario Gabelli (Trades, Portfolio) is the company's largest guru shareholder, followed by Jim Simons (Trades, Portfolio) with 1.3%, Cohen with 0.26% and Joel Greenblatt (Trades, Portfolio) with 0.04%.

Fourteen gurus are invested in IQVIA Holdings Inc. (IQV, Financial). The company, which provides medical diagnostics and research, has a $25.65 billion market cap.

The stock is trading with a price-book ratio of 3.45. The price of $125.82 is 1.78% below its 52-week high and 37.72% above its 52-week low. Over the last 10 years, it has returned a gain of 199%.

The company’s largest shareholder among the gurus is Steve Mandel (Trades, Portfolio) with 5.16% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 5%.

Disclosure: I do not own any stocks mentioned in this article.