5 Health Care Stocks Gurus Are Buying

Bio-Rad, Meridian Bioscience on the list

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Dec 04, 2018
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According to the GuruFocus All-In-One Screener, the following health care stocks are popular among guru investors.

Five gurus are invested in Portola Pharmaceuticals Inc. (PTLA). The company, which provides diversified health care benefits, has a market cap of $1.45 billion. Its revenue of $34.64 million has not changed over a 10-year period.

The stock is trading with a price-booking ratio of 8.85. As of Monday, the share price of $22 is 61.46% below its 52-week high and 20.19% above its 52-week low. Over the last 10 years, it has returned a gain of 44%.

The company’s largest shareholder among the gurus is Vanguard Health Care Fund (Trades, Portfolio) with 4.41% of outstanding shares, followed by the Pioneer Investments (Trades, Portfolio) with 0.68%, Stanley Druckenmiller (Trades, Portfolio) with 0.52% and Leucadia National (Trades, Portfolio) with 0.2%.

Eight gurus have positions in Eagle Pharmaceuticals Inc. (EGRX). The company, which develops injectable products in the areas of orphan diseases and oncology, has a market cap of $751.62 million and a revenue of $204.04 million.

The stock is trading with a price-book ratio of 3.87. The current price of about $50 is 85.66% below its 52-week high and 7.51% above its 52-week low. Over the past decade, it has returned a gain of 293%.

The First Eagle Investment (Trades, Portfolio) is the largest guru shareholder of the company with 1.43% of outstanding shares, followed by Chuck Royce (Trades, Portfolio) with 0.28%, John Hussman (Trades, Portfolio) with 0.17% and Pioneer Investments (Trades, Portfolio) with 0.16%.

Seven gurus are invested in Meridian Bioscience Inc. (VIVO). The company, which manufacturers diagnostic test kits for gastrointestinal viral and parasitic infectious diseases, has a $803.11 million market cap. Its revenue of $213.57 billion has grown 4% over the last 10 years.

The stock is trading with a price-book ratio of 4.58. The current price of $18.94 is 4.54% below its 52-week high and 39.99% above its 52-week low. Over the past decade, it has returned a loss of 19%.

The company’s largest guru shareholder is Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 6.61% of outstanding shares, followed by Hotchkis & Wiley with 0.51%, Mario Gabelli (Trades, Portfolio) with 0.39%, Royce with 0.35% and Barrow, Hanley, Mewhinney & Strauss with 0.32%.

Invacare Corp. (IVC) is held by six gurus. The company, which manufactures medical equipment, has a market cap of $182.61 million. Its revenue of $978.12 million has fallen 5.70% per annum over the last 10 years.

The stock is trading with a price-book ratio of 0.49. The current price of $5.5 is 72.5% below its 52-week high and 3.58% above its 52-week low. Over the last 10 years, it has returned a 63% loss.

With 6.52% of outstanding shares, Barrow, Hanley, Mewhinney & Strauss is the company's largest guru shareholder, followed by Royce with 5.24%, Mariko Gordon (Trades, Portfolio) with 4.78%, Hotchkis & Wiley with 3.28% and Paul Tudor Jones (Trades, Portfolio) with 0.25%.

Bio-Rad Laboratories Inc. (BIO) is held by 12 gurus. The provider of life science research, analytical chemistry and other markets has a market cap of $8.22 billion. Its revenue of $2.29 billion has grown 2% per annum over the last 10 years.

The stock is trading with a price-earnings ratio of 6.49. The current price of $274.46 is 20.48% below its 52-week high and 18.81% above its 52-week low. Over the last 10 years, it has returned a gain of 285%.

The company’s largest guru shareholder is Ken Fisher (Trades, Portfolio) with 0.86% of outstanding shares, followed by John Rogers (Trades, Portfolio) with 0.78%, NWQ Managers (Trades, Portfolio) with 0.5%, Steven Cohen (Trades, Portfolio) with 0.44% and Pioneer Investments (Trades, Portfolio) with 0.34%.

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