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5 Health Stocks That Work w/ Obama: Analyst

CNBC.com
Monday, 27 Jul 2009 | 10:56 AM ET

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.

Healthcare Winners & Losers
Opponents of President Obama's healthcare reform warn the measure could mean the demise of private healthcare provides, but John Sullivan, of Leerink Swann, says now is the time to buy healthcare stocks.

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.

Recommendations:

Biotech:

Biogen Idec

Amgen

Managed Care:

WellPoint

Cigna

Information Technology:

Cerner

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Disclosures:

Disclosure information was not available for Sullivan or his company.

Disclaimer

  Price   Change %Change
AMGN
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BIIB
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CERN
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CI
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WLP
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