5 Health Care Stocks Gurus Are Buying

Gilead, Celgene make the list

Author's Avatar
Jul 25, 2018
Article's Main Image

According to the GuruFocus All-In-One Screener, the following health care stocks are popular among gurus.

Seven gurus are invested in Gilead Sciences Inc. (GILD, Financial). The company produces new medicines in areas of unmet medical need. It has a market cap of $101.29 billion. Its revenue of $24.59 billion has grown 28.0% over a 10-year period.

The stock is trading with a price-book ratio of 4.94. The current price of $77.9 is 12.63% below its 52-week high and 21.72% above its 52-week low. Over the past decade, it has returned a gain of 196%.

The company’s largest shareholder among the gurus is Dodge & Cox with 1.19% of outstanding shares, followed by Pioneer Investments (Trades, Portfolio) with 0.65%, Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.39% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.27%.

Three gurus have positions in Concert Pharmaceuticals Inc. (CNCE, Financial). The company, which develops small-molecule drugs to cure narcolepsy and Alzheimer's agitation, has a market cap of $1375.27 million and its revenue of $154.35 million has not changed over the last 10 years.

The stock is trading with a price-book ratio of 1.81. The current price of $16.04 is 48.10% below its 52-week high and 17.64% above its 52-week low. Over the last 10 years, it has returned a gain of 13%.

Simons' firm is the largest shareholder of the company among the gurus with 2.11% of outstanding shares, followed by Joel Greenblatt (Trades, Portfolio) with 0.08% and Paul Tudor Jones (Trades, Portfolio) with 0.08%.

Seven gurus are invested in Celgene Corp. (CELG, Financial). The company, which develops therapies to treat cancer and immune-inflammatory-related diseases, has a market cap of $61.46 billion. Its revenue of $13.57 billion has increased 24.30% over the past decade.

The stock is trading with a price-book ratio of 12.31. The current price of $86.95 is 41.24% below its 52-week high and 16.66% above its 52-week low. Over the past decade, it has returned a gain of 135%.

The company’s largest guru shareholder is Spiros Segalas (Trades, Portfolio) with 0.39% of outstanding shares, followed by Simons with 0.36% and David Rolfe (Trades, Portfolio) with 0.13%.

Four gurus have positions in Arena Pharmaceuticals Inc. (ARNA, Financial). With a market cap of $2.07 billion, the company develops novel drugs. Its revenue of $16.47 million has decreased 3.90% per annum over the last 10 years.

The stock is trading with a price-book ratio of 2.83. The current price of $42.06 is 17.02% below its 52-week high and 107.44% above its 52-week low. Over the past decade, it has returned a loss of 36%.

Steven Cohen (Trades, Portfolio) is the largest guru shareholder of the company with 0.69% of outstanding shares, followed by Simons with 0.48% and Leon Cooperman (Trades, Portfolio) with 0.07%.

Four gurus are invested in Mettler-Toledo International Inc. (MTD, Financial). The company, which provides laboratory scales, pipettes and other medical equipment, has a market cap of $2.79 billion. Its revenue has grown 7.90% over a 10-year period.

The stock is trading with a price-book ratio of 27.36. The current price of $602.64 is 13.38% below its 52-week high and 11.80% above its 52-week low. Over the last 10 years, it has returned a gain of 465%.

With 2.36% of outstanding shares, Ron Baron (Trades, Portfolio) is the company's largest guru shareholder, followed by Simons with 1.12%, Pioneer Investments with 0.19% and Columbia Wanger (Trades, Portfolio) with 0.12%.

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