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5 Appealing Healthcare Stocks

While the markets have seen huge gains off the lows of early-March, the healthcare sector hasn’t seen the huge gains that financial and tech stocks have experienced. For the most part, stocks in the healthcare sector have been held back by President Obama’s healthcare reform initiatives. Many recognize that healthcare stock valuations appear to be low, but no one wants to jump in with so much uncertainty in the market. 

However, it appears that the Obama administration is beginning to recognize that their healthcare reform plan is too aggressive. Already there are indications coming out of the White House that there is willingness to scale back their healthcare initiatives in the face of strong popular resistance and worries about the overwhelming costs of public healthcare. 

This positive news has lifted healthcare stocks recently, with the healthcare sector of the S&P 500 gaining 5.3% since June 30th. However, the big move in healthcare stocks appears to still be ahead of us and we have identified five stocks that should be compelling to investors. 

Abbott Laboratories [[ABT]]
Despite strong growth prospects and a decent dividend yield, this healthcare stock is currently trading near its 52-week low. 

2010 Revenue Growth: 7.7%
P/E (ttm): 13.3
Dividend Yield: 3.6% 

Gilead Sciences [[GILD]]
This high-growth healthcare stock has seen its stock price rise 12 consecutive years.

2010 Revenue Growth: 14.9%
P/E (ttm): 18.7
Dividend Yield: N/A

Medtronic [[MDT]]
Wall Street’s consensus estimates appear to be too low for this healthcare stock which could provide an opportunity for investors to capitalize on an upside surprise.

2010 Revenue Growth: 5.5%
P/E (ttm): 19.0
Dividend Yield: 2.2%

Eli Lilly [[LLY]]
Two words…dividend yield. The stock offers dividend investors a whopping 6.0% yield.

2010 Revenue Growth: 6.3%
P/E (ttm): N/A
Dividend Yield: 6.0%

Celgene [[CELG]]
Another high-growth healthcare stock that could deliver a 40% return to investors if it returns to its 52-week high.

2010 Revenue Growth: 20.4%
P/E (ttm): 84.3
Dividend Yield: N/A

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  1. The Buzz » Blog Archive » 5 Appealing Healthcare Stocks | Echristianfinance - September 11, 2009

    […] While the markets have seen huge gains off the lows of early-March, the healthcare sector hasn’t seen the huge gains that financial and tech stocks have experienced. For the most part, stocks in the healthcare sector have been held back …Continue Reading… […]