Health Care Stocks Look in The Pink, Says Strategist
The market may see a Democratic congress as detrimental to health care stocks -- but Henssler Financial Group's Ted Parrish begs to disagree. Parrish, the co-portfolio manager of the firm's Henssler Equity Fund joined "Squawk on the Street" to tout the opportunities in health care companies -- and name his favorites.
Parrish praised Teva Pharmaceutical Industries for having "one of the highest projected growth rates for health care -- and in the market, period." On Sunday, the Israeli drug maker launched a generic version of Novartis' high blood pressure drug Lotrel, but a U.S. federal court issued a temporary restraining order blocking the sales.
However, Parrish is undaunted by the court order, and told CNBC's Mark Haines that the news "is not a shock" -- and said Teva has "a lot" of other drugs pending approval for generic use. He believes the market transcend this news "fairly quickly."
Ther fund manager's other pick: UnitedHealth Group. He concedes that the health-benefits firm has been "dogged by the options issues scandal" last year, and the subsequent departure of then-Chairman and CEO William McGuire.
But Parrish said UnitedHealth Group has done a "great job" of building earnings over the past three to five years. With some $4 per share in free cash flow, the company has an opportunity to raise dividends "hugely," as well as enacting big share buybacks. He predicts "a lot of movement" in the stock.