In this article, we discuss the 5 best healthcare stocks to buy according to Larry Robbins’ Glenview Capital. If you want to read our detailed analysis of Robbins’ history, and hedge fund performance, go directly to 10 Best Healthcare Stocks to Buy According to Larry Robbins’ Glenview Capital.
5. AmerisourceBergen Corporation (NYSE: ABC)
Robbins’ Stake Value: $214,188
Percentage of Larry Robbins’ 13F Portfolio: 3.62%
AmerisourceBergen Corporation (NYSE: ABC) is a wholesale drug company that was formed by the coalition of Bergen Brunswig and AmeriSource in 2001. It ranks fifth on the list of 10 best healthcare stocks to buy according to Larry Robbins’ Glenview Capital. The company has a market cap of $23.74 billion. Shares of AmerisourceBergen Corporation (NYSE: ABC) jumped 15.76% over the past twelve months.
The American drug company currently pays its shareholders a quarterly dividend of $0.44 per share, with a forward yield of 1.76%. On May 6, ABC Barclays analyst Eric Coldwell raised the firm’s price target on AmerisourceBergen to $130 from $122 and maintained an Equal Weight rating on the shares.
4. McKesson Corporation (NYSE: MCK)
Robbins’ Stake Value: $343,408,000
Percentage of Larry Robbins’ 13F Portfolio: 5.81%
McKesson Corporation (NYSE: MCK) provides healthcare supply chain management, retail pharmacy, community oncology and specialized care, and healthcare information solutions globally. It stands fourth on the list of 10 best healthcare stocks to buy according to Larry Robbins’ Glenview Capital. McKesson Corporation (NYSE: MCK) shares have gained about 31.36% in value over the last 12 months. On August 4, the company posted higher-than-anticipated first quarter 2021 results. The earnings per share was $5.56 beating the estimates by $1.42; revenue was $62.7 billion, up 12.6% YoY, beating the market predictions by $2.54 billion. Deutsche Bank analyst George Hill has a “Buy” rating on the stock with a price target raised to $261 from $237.
The hedge fund chaired by Larry Robbins holds 1.76 million shares in McKesson Corporation (NYSE: MCK) worth over $343 million. Glenview Capital’s stake in the company’s shares increased by 51% in the past few months.
3. Cigna Corporation (NYSE: CI)
Robbins’ Stake Value: $449,363,000
Percentage of Larry Robbins’ 13F Portfolio: 7.61%
Cigna Corporation (NYSE: CI) is an American healthcare and insurance company incorporated in 1792. It stands third on the list of 10 best healthcare stocks to buy according to Larry Robbins’ Glenview Capital. Shares of the company rallied 29.17% in the last twelve months, resulting in $80.71 billion market capitalization.
On May 18, Wells Fargo analyst Peter Costa initiated a coverage of Cigna with an Equal Weight rating and $284 price target.
Artisan Partners Limited Partnership, in their fourth quarter 2020 investor letter, mentioned Cigna Corporation (NYSE: CI). Here is what the fund has to say about Cigna in their investor letter:
“New purchases include Cigna. Cigna is a leading managed care company which operates through the following major segments: health services, integrated medical, international markets and group disability. It’s one of the few managed care organizations in the United States with the scale and size to compete effectively. Cigna has recently focused on deleveraging its balance sheet and further diversifying its business, after completing the Express Scripts acquisition in late 2018. Additionally, the company has partnered with Amazon, which will offer two new pharmacy options—including a self-pay offering. Cigna will administer the self-pay option through its health services division Evernorth. The partnership should be one of many strong earnings drivers for Cigna, which we believe is currently trading at an attractive valuation.”
2. Bausch Health Companies Inc. (NYSE: BHC)
Robbins’ Stake Value: $495,559,000
Percentage of Larry Robbins’ 13F Portfolio: 8.39%
Bausch Health Companies Inc. (NYSE: BHC), a pharmaceutical, medical device, and over-the-counter (OTC) company that focuses on eye health, gastroenterology, and dermatology, ranks second on the list of 10 best healthcare stocks to buy according to Larry Robbins’ Glenview Capital.
Bausch Health Companies Inc. (NYSE: BHC) shares have returned 43.66% to investors over the past year. Glenview Capital holds more than 15 million shares in Bausch Health Companies Inc. (NYSE: BHC) worth over $495 million, representing 8.39% of their portfolio. The hedge fund has trimmed stakes in the firm by 5% in the past few months.
In its first-quarter 2021 Investor Letter, Miller Value Partners highlighted a few stocks and Bausch Health Companies Inc. (NYSE: BHC) is one of them. Here is what the fund said:
“Bausch Health Companies (BHC) climbed 55% during the period. Glenview (6% owner) sent a letter to the company in early February arguing the company has not acted to unlock shareholder value and urging the company to sell its eye care business. Shortly after, activist investor Carl Icahn disclosing a 7.83% stake in the company. The company responded to the filing saying that they remain committed to splitting the business into two parts, but are open to pursuing all opportunities. The company reported strong 4Q results with better-than-expected 2021 guidance. 4Q revenue came in at $2,213M slightly ahead of consensus of $2,165M and EPS of $1.34 beat consensus of $1.12. The company guided for 2021 revenue of $8.6-8.8B coming in ahead of expectations of $8.55B with EBITDA of $3.4-3.55B ahead of $3.46B estimated. The company announced the transition of Paul Herendeen to an advisory role to be succeeded by Sam Eldessouky, previously senior vice president, controller and chief accounting officer. Finally, the company announced the sale of Amoun Pharmaceutical for $740M, which was relatively in line with estimates and should help support debt reduction targets ahead of the planned spin-off of Bausch + Lomb eye care business.”
1. Tenet Healthcare Corporation (NYSE: THC)
Robbins’ Stake Value: $713,717,000
Percentage of Larry Robbins’ 13F Portfolio: 12.09%
Tenet Healthcare Corporation (NYSE: THC), a healthcare services firm that provides a variety of services, stands first on the list of 10 best healthcare stocks to buy according to Larry Robbins’ Glenview Capital.
On July 23, RBC Capital analyst Frank Morgan raised the firm’s price target on Tenet Healthcare to $83 from $78 and maintained an “Outperform” rating on the shares.
Tenet Healthcare Corporation (NYSE: THC) currently has a $7.41 billion market capitalization. It delivered a 137.74% return in the past 12 months. Out of the hedge funds being tracked by Insider Monkey, New York-based hedge fund Glenview Capital is a leading shareholder in Tenet with 13.73 million shares worth more than $713 million.
You can also take a peek at 10 Best Stocks to Buy According to Billionaire Daniel Sundheim and 10 Popular Stocks to Buy Right Now.
