As the health care debate continues, Todd Weller, health care IT analyst at Stifel Nicolaus, and Les Funtleyder, health care strategist at Miller Tabak, zero in on health care names that may bring healthy returns.
“Health care information technology adoption continues to be a key secular area of growth and it’s decoupled from the broader reform efforts because of the incentive programs that were in the economic stimulus signed back in February,” Weller told CNBC. (Read below for his stock picks.)
As a result, health IT vendors should benefit, as providers increase their adoption of electronic medical records, said Weller.
In the meantime, Funtleyder said he still prefers the larger-cap health care names.
“There’s still a fear discount in the market for the insurers like UnitedHealth and Humana so the market is in the process of retracing those discounts,” he said.
“We think there’s some upside going into the second half of the year.”
Allscripts Health Care
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Weller’s firm Stifel, Nicolaus & Company makes a market in the securities of Eclipsys, Allscripts and Cerner. Weller has an investment banking client who owns shares of Eclipsys.
Funtleyder does not own shares of any of the firms mentioned above.