5 Popular Health Care Stocks Gurus Are Buying

HCA Healthcare tops the list

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

Nineteen gurus are invested in HCA Healthcare Inc. (HCA, Financial). The company, which operates general acute care hospitals and rehabilitation centers, has a market cap of $47.12 billion. Its revenue of $45.21 billion has increased 6.30% over a 10-year period.

The stock is trading with a price-earnings ratio of 17.13. As of Wednesday, the share price of $136 is 7.40% below its 52-week high and 81.09% above its 52-week low. Over the last 10 years, it has returned a gain of 322%.

The company’s largest shareholder among the gurus is the Vanguard Health Care Fund (Trades, Portfolio) with 2.37% of outstanding shares, followed by Larry Robbins (Trades, Portfolio) with 1.54% and Glenn Greenberg (Trades, Portfolio) with 0.78%.

Nine gurus have positions in Encompass Health Corp. (EHC, Financial). The provider of post-acute health care services has a market cap of $7.36 billion. Its revenue of $4.10 billion has grown 8.20% over the past decade.

The stock is trading with a price-book ratio of 5.94. The current price of about $75 is 9.82% below its 52-week high and 69.01% above its 52-week low. Over the past decade, it has returned a gain of 521%.

Barrow, Hanley, Mewhinney & Strauss is the largest guru shareholder of the company with 1.24% of outstanding shares, followed by Mariko Gordon (Trades, Portfolio) with 1.17%, Jim Simons (Trades, Portfolio)' Renaissance Technologies with 0.88% and Chuck Royce (Trades, Portfolio) with 0.13%.

 Eight gurus are invested in Envision Healthcare Corp. (EVHC, Financial). The company, which provides physician-led services and ambulatory services, has a $5.58 billion market cap. Its revenue of $8.14 billion has risen 15% over the last 10 years.

The stock is trading with a price-book ratio of 1.21. The current price of $45.99 is 0.02% below its 52-week high and 93.48% above its 52-week low. Over the past decade, it has returned a gain of 114%.

The company’s largest guru shareholder is Lee Ainslie (Trades, Portfolio) with 5.56% of outstanding shares, followed by Vanguard with 2.38%, Joel Greenblatt (Trades, Portfolio) with 0.56% and George Soros (Trades, Portfolio) with 0.12%.

Chemed Corp. (CHE, Financial)Â is held by 10 gurus. The provider of hospice and palliative care services has a market cap of $4.94 billion. Its revenue of $1.72 billion has grown 8.70% per annum over the last 10 years.

The stock is trading with a price-book ratio of 8.79. The current price of $307 is 8.59% below its 52-week high and 52.77% above its 52-week low. Over the last 10 years, it has returned an 818% gain.

With 2.98% of outstanding shares, Ken Fisher (Trades, Portfolio) is the company's largest guru shareholder, followed by Mario Gabelli (Trades, Portfolio) with 1.75%, Simons' firm with 0.86% and Steven Cohen (Trades, Portfolio) with 0.47%.

Tenet Healthcare Corp. (THC, Financial)Â is held by seven gurus. The company, which operates acute-care hospitals, has a market cap of $2.62 billion. Its revenue of $18.76 billion has grown 14.20% per annum over the last 10 years.

The stock is trading with a forward price-earnings ratio of 11.19. The current price of $26 is 34.63% below its 52-week high and 108.67% above its 52-week low. Over the last 10 years, it has returned a gain of 64%.

The company’s largest guru shareholder is Greenblatt with 0.27% of outstanding shares, followed by Cohen with 0.24%, Jeremy Grantham (Trades, Portfolio) with 0.12% and Ainslie with 0.07%.

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

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