On Saturday, the House backed a health care bill that would expand coverage to nearly all Americans and bar insurance practices such as refusing to cover people with pre-existing medical conditions. How should investors be positioned?
Bob Phillips, managing partner at Spectrum Management Group and Robert Zagunis, co-portfolio manager at Jensen Investment Management shared their insights.
“If you look at companies in the health care sector that are diversified, already are acting in foreign markets that have single payer systems, and strong to start where they have margin and topline that can be reduced and still perform at very high business levels and the valuations given the overhang—there are some nice opportunities in the health care sector,” Zagunis told CNBC. (Scroll down to read his full stock picks.)
In the meantime, Phillips said the markets are in a “tight range.”
“We’re in a 1,020 to 1,080 [on the S&P] or so on the market and we’re going to be in that range for several weeks,” said Phillips. “I do think we’re in for economic surprises on the positive side, but it’s going to take a few of those to push momentum higher faster and the close above 1,080 is going to be key.”
Zagunis Likes:
Medtronic
Abbott Laboratories
Automatic Data Processing
Cognizant Technologies
Microsoft
Phillips Likes:
AmerisourceBergen
Enerplus Resources Fund
CNBC Data Pages:
- Track the DJ Health Care Index Here
- Dow 30 Stocks—In Real Time
- Where's the US Dollar Today?
More Market Intelligence:
- Art Cashin: I'm Still Skeptical About Markets
- Strategist on What Stocks to Buy Amid Health Overhaul
- S&P to Finish Above 1,100 by Year-End: Market Analyst
______________________________
CNBC Slideshows:
______________________________
Disclosures:
Zagunis owns shares of MDT, ABT, ADP, CTSH, MSFT via owning shares of his fund.
Phillips owns shares of ABC and ERF. Spectrum Management Group holds the same two firms in client portfolios.
______________________________
