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One Stock With ‘Secret Sauce’: Pro

Health care company Humana has a healthy future, Jeff Jonas, portfolio manager of the Gabelli Healthcare and Wellness Trust, said Wednesday.

"I mean, yes, they beat by something like 80 cents and raised guidance for the year. But they really have the secret sauce to controlling health care costs," he said.

Humana posted a net profit of $473 million for the quarter, or $2.95 per share, nearly double the year-earlier $248 million, or $1.49 per share, according to Reuters.

On CNBC's "Fast Money," Jonas explained how Humana has been cutting costs.

"They're actually buying up the physician practices," he said. "They're putting the doctor on salary, and moving away from that fee-for-service system that really inflates a lot of the procedures and costs, so it's really bullish for the future."

Jonas added that Humana was lobbying the federal government for additional Medicare rate relief.

In the pharmacy space, his top pick was CVS, calling it a "free cash-flow machine."

"They're going to generate $5 billion of cash this year and use $4 billion of it to repurchase stock," Jonas said.

Whole Foods, too, appeared poised to gain market share and continue strong same-store sales numbers, he added.

"Maybe a little slower than it used to be, maybe some tough comps here, but overall we think they have a lot of room to better penetrate the entire country," Jonas said.

Trader disclosure: On May 1, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Enis Taner is long GS; Enis Taner is long AAPL CALL FLY; Enis Taner is long QCOM CALL FLY; Enis Taner is long XLE PUTS; Enis Taner is long FXE PUTS; Enis Taner is long XHB PUTS; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long INTC CALLS; Pete Najarian is long BBRY STOCK & CALLS; Pete Najarian is long SBUX; Pete Najarian is long FB STOCK & CALLS; Pete Najarian is long F CALLS; Pete Najarian is long MRK ; Pete Najarian is long BMY; Simon Baker is long AAPL; Simon Baker is long C; Simon Baker is long YHOO; Simon Baker is long SBUX; Simon Baker is long MSFT; Simon Baker is long GOOG; Simon Baker is long F; Simon Baker is long SHK; Simon Baker is long JNJ; Simon Baker is long GIS; Simon Baker is long ORCL; Simon Baker is long COH; Jon Najarian is long BZH CALLS; Jon Najarian is long CTSH CALLS; Jon Najarian is long OC CALLS; Jon Najarian is long SPX; Jon Najarian is long EEM; Jon Najarian is long FXI.

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HUM
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