Brent Wilsey has a prescription for investors: Specialty health-care names.
The president of Wilsey Asset Management thinks that the downdrafts that have slammed stock prices in the sector are now behind it, and it's time to buy into the companies' recovery.
Topping is list is Chemed.
"This company has moved quite a bit," he said. "The 52-week high is $69 a share; it's...now around $42...the forward P/E is still under 12...their earnings are up 11 percent year-over-year."
Wilsey also points out that nearly a third of the company's earnings come from an unexpected subsidiary: Roto-Rooter.
He also likes Coventry Health Care.
"The stock has kind of struggled over the past year," he said. "But the company's doing a great job! Their sales are up 32 percent year-over-year; return on equity is 20 percent...great company, great fundamentals, good time to buy it."
Also on his list, UnitedHealth Group, which posted a sharp drop in second-quarter profit this week.
"Their earnings don't look as good because of special one-time items, but if you take those out...you'll see that their earnings were 67 cents per share," he pointed out. "Going forward, the next 12 to 18 months, you'll see good things from this company."
Rounding out his selections are Humana and WellCare Health Plans.