One of our top ranked sectors currently is the Health Care Sector, especially Drug Manufacturers and Health Care Providers. This sector continues to show improving relative strength, with many leaders currently at or near breakout levels. The group also has reasonable valuations, in a market that has become more focused on valuations over the last 8-12 weeks.
A few of our favorite technical ideas here are AbbVie (ABBV), GlaxoSmithKline (GSK) and Pfizer (PFE) in the Drug Manufacturers industry and HCA Healthcare (HCA) and Laboratory Corp (LH) in the Health Care Providers industry.
ABBV trades at 8x Forward PE with a 4.2% yield*. GSK 12 F/PE, 5.5% yield, PFE 11 F/PE, 3.9% yield. HCA 13 F/PE, 0.94% yield, LH 16 F/PE, 0 yield. All are trading in strong uptrends above their rising 50-day moving average and could continue to perform well based on their current trends.
Disclosure: I am currently long ABBV.
*All PE and yield data is taken from Finviz.com.
ABBV (Featured Chart)
GSK
PFE
