Tags: health | stocks | record | highs | market | plunge

4 Health Stocks Avoid Market Plunge, Hit Record Highs

By    |   Friday, 07 December 2018 03:35 PM

As markets crashed this week, four healthcare stocks hit 52-week highs.

UnitedHealth and Eli Lilly roared to record highs on Tuesday, while Pfizer and Merck moved to their highest levels since 2001.

Mark Newton, technical analyst at Newton Advisors, told CNBC the overall healthcare trade still looks like a solid play.

“We haven’t seen any signs of sufficient deterioration that would make you want to avoid health care at this point so it’s still an area where people want to rotate out of technology,” Newton said on CNBC’s “Trading Nation. ”

The health care sector is one of the best performers over the past month and the top mover of the year. The XLV health care ETF is up 1 percent over the past three months, while the S&P 500 has tumbled nearly 6 percent, CNBC reported.

“One stock in particular I like is Eli Lilly,” said Newton. “Near-term we’re seeing a very decent pattern here at work. You’ve seen this little cup-and-handle pattern which recently just broke out last week.”

Michael Bapis, managing director at Vios Advisors at Rockefeller Capital Management, is bullish on the entire group as an alternative to the high-growth, high-premium tech trade.

“The earnings are there,” Bapis told CNBC. “Companies like Pfizer … you’re still getting almost a 4 percent dividend yield, trading at 15 times earnings and growing those earnings over the next three years so it’s definitely a place to hide in volatile markets and in the overall market rotation.”

Meanwhile, the nation's health care tab hit $3.5 trillion last year, or $10,739 per person, the government reported.

But behind those staggering figures was some fairly good news: The rate of growth slowed for the second year in a row, according to economic experts at the federal Health and Human Services department. 

Health care spending increased by 3.9 percent in 2017, following a 4.8 percent increase in 2016, the Associated Press reported.

Private insurance spending grew more slowly in 2017, and so did Medicaid, while Medicare costs grew at about the same rate. The overall economy grew faster than health spending.

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As markets crashed this week, four healthcare stocks hit 52-week highs.
health, stocks, record, highs, market, plunge
Friday, 07 December 2018 03:35 PM
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