Stock Picks:  Healthiest In Health Care

The health-care sector has been getting healthier, according to Schwab's Paul Alan Davis.

His four-star Schwab Health Care Fund is up an average of 15.3 percent per year over the last five years.

So which health-care stocks can boast the most robust health?


His top pick is equipment maker Medtronic.

"They've gone through a bit of a change over the last few years...they've been spinning off a lot of cash, and they've been using that cash in shareholder-friendly ways of late," he said. "They also have international sales up 40 percent."

He also likes Cephalon.

"Cephalon is a specialty pharma firm...really solid fundamentals," he said. "They have drugs that have already been approved for certain indications, and they might get other indications...we think the upside here is really good."


Disclosure information for Paul Alan Davis was nopt immediately available.