Ahead of the annual “Health Care Super Bowl” next week, the “Fast Money” pros picked a few of their favorite plays.
More than 400 companies are expected to attend the JPMorgan health care conference, providing guidance for 2012, financial results and new blockbuster drugs in the works.
Pete Najarian said he owns Bristol Myers Squibb, Merck, Pfizer and Lilly, among others.
Valuation and dividend yields were the biggest reasons to own these stocks, he said.
But also worth watching was what some of the smaller companies were working on, which could make them potential takeover targets by larger names looking to identify profitable drugs in development.
“They want to get it as it’s getting toward the actual dates to get through Phase 3,” he said.
Najarian also singled out Pfizer, which had a “monster pipeline” of potential new drugs in its deal with Wyeth.
“I still believe in the story,” he said. “This is a name I think continues to work to the upside.”
Pfizer closed down slightly at $21.56 per share.
In the HMO space, trader Steve Grasso of Stuart Frankel picked Humana, whose stock hit an all-time high of $94.85 per share before retreating slightly to close at $92.25.
“Their sweet spot is employment. Good employment data equates for them to rally even further,” he said. “Fifty-two-week highs make new 52-week highs.”
Got something to to say? Send us an e-mail at firstname.lastname@example.org and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to .
Trader disclosure: On Jan. 6, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova owns APC; Terranova owns OXY; Terranova owns XOM; Terranova owns VRTS; Terranova owns IBM; Terranova owns CSCO; Terranova owns AXP; Terranova owns SBUX; Terranova owns CSX; Terranova owns SWN; Terranova owns AXP; J. Najarian owns AAPL; J. Najarian owns AKS; J. Najarian owns BAC; J. Najarian owns PNC; J. Najarian owns GS; J. Najarian owns NFLX; J. Najarian owns MSFT; J. Najarian owns AA; P. Najarian is long AAPL; P. Najarian is long C; P. Najarian is long JPM calls; P. Najarian is long WFC calls; P. Najarian is long NFLX calls; P. Najarian is long MSFT ; P. Najarian is long INTC; P. Najarian is long YHOO; P. Najarian is long INTC; Weiss is long EUO; Weiss is short FXA; Grasso owns ASTM; Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Weiss is long EUO; Weiss is short FXA
For Steve Grasso
Stuart Frankel & Co and its partners own CSCO
Stuart Frankel & Co and its partners own CUBA
Stuart Frankel & Co and its partners own GERN
Stuart Frankel & Co and its partners own HPQ
Stuart Frankel & Co and its partners own HSPO
Stuart Frankel & Co and its partners own MU
Stuart Frankel & Co and its partners own NYX
Stuart Frankel & Co and its partners own PRST
Stuart Frankel & Co and its partners own XRX
For Doug Sipkin
Ticonderoga Securities LLC makes a market in (MS) security. Ticonderoga Securities LLC, in its market making capacity, sells to or buys from customers the securities of this company on a principal basis.
For Willie Williams
For Justin Patterson
There are NO disclosures.
Morgan Keegan does not allow its analysts or their immediate family members to hold a position of any kind in the securities of the companies they follow.
For Jason Gursky
Citigroup Global Markets Inc