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James Li
James Li
Articles (1169)  | Author's Website |

4 Health Care Stocks Gurus Broadly Own

November jobs report shows strong growth in education and health services

December 06, 2019 | About:

According to the Aggregated Portfolio, a GuruFocus Premium feature, the four broadest-owned stocks within the health care sector are UnitedHealth Group Inc. (NYSE:UNH), Johnson & Johnson (NYSE:JNJ), Merck & Co. Inc. (NYSE:MRK) and Anthem Inc. (NYSE:ANTM).

Dow finishes first week of December strong as November jobs growth exceeds expectations

The Bureau of Labor Statistics said on Friday that total nonfarm payroll employment increased by 266,000 in November, topping the Dow Jones estimate of 187,000 by approximately 42.24%. Investors cheered on the strong job report, sending the Dow Jones Industrial Average 337.27 points higher to 28,015.06 from Thursday’s close of 27,677.79.


The Labor Department said health care added 45,000 jobs in November, up from an increase of 12,000 in October. Strong growth in ambulatory health care services and in hospitals contributed to a job increase of 414,000 over the past 12 months. CNBC added that the 74,000 total jobs in education and health services represented the largest one-month change in job growth among the sectors.

Aggregated Portfolio looks for opportunities in health care

As the health care sector produces strong employment growth, gurus are finding opportunities in health care companies. The Most Broadly Held model portfolio has outperformed the Standard & Poor’s 500 index and returned an annualized 18.72% over the past three years.


Thirty-three gurus own shares of UnitedHealth Group with a combined weight of 43.51%. Gurus with large holdings in UnitedHealth include Dodge & Cox and the Vanguard Health Care Fund (Trades, Portfolio).


The Minnetonka, Minnesota-based company provides health insurance services to its members through products for every major insurance market: individual, group and government-sponsored. GuruFocus ranks UnitedHealth’s profitability 9 out of 10 on several positive investing signs, which include a five-star business predictability rank and a return on equity that outperforms 80.95% of global competitors.


Johnson & Johnson

Thirty gurus own shares of Johnson & Johnson with a combined weight of 59.16%. Ken Fisher (Trades, Portfolio) has the largest stake in the company with 12,081,488 shares.


The New Brunswick, New Jersey-based company operates three businesses: pharmaceutical, medical devices and diagnostics and consumer. GuruFocus ranks the company’s profitability 8 out of 10 on several positive investing signs, which include a strong Piotroski F-score of 8 and operating margins that are outperforming 88.84% of global competitors despite contracting over the past five years.



Twenty-seven gurus own shares of Merck with a combined weight of 44.47%.


The Kenilworth, New Jersey-based company manufactures pharmaceutical products to treat health conditions like cardiovascular disease, asthma, cancer and infections. GuruFocus ranks Merck’s profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and operating margins that have increased approximately 2.50% per year over the past five years and are outperforming 91.29% of global competitors.



Twenty-seven gurus own shares of Anthem with a combined weight of 38.35%.


The Indianapolis-based company provides health insurance services through several products for individuals, corporate groups and government-sponsored programs. According to GuruFocus, Anthem’s business predictability ranks four stars out of five on consistent revenue and earnings growth over the past 10 years.


Disclosure: No positions.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

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