5 Health Stocks That Work w/ Obama: Analyst
Opposition to the Obama administration's health care plan had a new voice Monday, as the U.S. Chamber of Commerce launched a critical ad campaign suggesting alternatives.
But despite concerns re the value of private health care, John Sullivan of Leerink Swann says this is a crucial time to buy health stocks — particularly managed care and biotech. (See his stock recommendations, below.)
"Managed-care stocks are economically sensitive companies," Sullivan told CNBC. Thus, the category dropped in price paralleling the greater market downturn. But therein lies the appeal, he said.
"More broadly, these sorts of [market] concerns are reflected in the valuation of managed care stocks."
Investors should not limit themselves to managed care, however. He sees opportunity in many corners of the health space:
"The entire health care sector is valued pretty cheaply, relative to where it was a year ago," Sullivan said.
Disclosure information was not available for Sullivan or his company.