5 Health Care Stocks Boosting Earnings

Biogen tops the list

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Jun 30, 2020
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The following companies have grown their earnings per share over a five-year period. According to the GuruFocus discounted cash flow calculator as of June 30, all of them also trade with a margin of safety.

Biogen

Biogen Inc.'s (BIIB, Financial) earnings per share have grown 16.5% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 71.77% margin of safety at $260 per share. The price-earnings ratio is 8.04. The share price has been as high as $374.99 and as low as $215.78 in the last 52 weeks; it is currently 30.57% below its 52-week high and 20.66% above its 52-week low.

The drug manufacturer has a market cap of $42.4 billion and an enterprise value of $44.98 billion.

The company's largest guru shareholder is PRIMECAP Management (Trades, Portfolio) with 9.78% of outstanding shares, followed by Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 2.74% and the Vanguard Health Care Fund (Trades, Portfolio) with 1.93%.

China Biologic Products

The earnings per share of China Biologic Products Holdings Inc. (CBPO, Financial) have grown 3.2% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with an 8.41% margin of safety at $102.99 per share. The price-earnings ratio is 26.07. The share price has been as high as $119.44 and as low as $88 in the last 52 weeks; it is currently 13.77% below its 52-week high and 17.03% above its 52-week low.

The biopharmaceutical company has a market cap of $3.9 billion and an enterprise value of $3.05 billion.

The company's largest guru shareholder is Renaissance Technologies with 0.65% of outstanding shares, followed by Caxton Associates (Trades, Portfolio) with 0.02%.

Grifols

Grifols SA’s (GRFS, Financial) earnings per share have grown 5.6% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with an 18.89% margin of safety at $18.64 per share. The price-earnings ratio is $27.33. The share price has been as high as $25.73 and as low as $13.4 in the last 52 weeks; it is currently 27.56% below its 52-week high and 39.1% above its 52-week low.

The Spanish producer of plasma derivates has a market cap of $12.7 billion and an enterprise value of $13.89 billion.

The company's largest guru shareholder is George Soros (Trades, Portfolio) with 0.34% of outstanding shares, followed by Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.06%.

HCA Healthcare

The earnings per share of HCA Healthcare Inc. (HCA, Financial) have grown 20.4% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 44.72% margin of safety at $96.2 per share. The price-earnings ratio of 10.94 is outperforming 86% of competitors. The share price has been as high as $151.97 and as low as $58.38 in the last 52 weeks; it is currently 36.7% below its 52-week high and 64.78% above its 52-week low.

The company, which provides health care services, has a market cap of $32.4 billion and an enterprise value of $70.36 billion.

The company's largest guru shareholder is the Vanguard Health Care Fund with 2.11% of outstanding shares, followed by Larry Robbins (Trades, Portfolio)’ Glenview Capital with 0.83% and First Eagle Investment (Trades, Portfolio) with 0.7%.

Universal Health Services

Universal Health Services Inc.'s (UHS, Financial) earnings per share have grown 9.9% per annum over the past five years.

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According to the DCF calculator, the stock is undervalued with a 41.2% margin of safety at $92.27 per share. The price-earnings ratio is 11.27. The share price has been as high as $157.79 and as low as $65.2 in the last 52 weeks; it is currently 41.52% below its 52-week high and 41.52% above its 52-week low.

The operator of acute care hospitals has a market cap of $7.8 billion and an enterprise value of $12 billion.

With 4.16% of outstanding shares, the Vanguard Health Care Fund is the company's largest guru shareholder, followed by First Eagle Investment with 3.5% and Glenview Capital with 0.42%.

Disclosure: I do not own any stocks mentioned.

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