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The Best Healthcare Growth Picks Of The Next Five Years

Healthcare Dividend Stocks With Highest Expected EPS Growth Researched By “long-term-investments.blogspot.com”. I like healthcare companies because the sector is a long-term growth area due to the ongoing aging population. The sector is a 46.1 trillion bet on stronger than expected health diseases with a current dividend yield of 3.20 percent. We know that the sector is very political driven because heath is a question of cost and money. 80 percent of the world’s population cannot finance a solid medical-aid, medical-care ore even an old-care. The best dividend stocks within the sector still come from the major drug manufacturing industry as well as from the medical practitioners industry.

I made a little screen of the best large capitalized stocks with the highest expected earnings per share growth for the next five years. The industry with the biggest earnings forecast is definitely the biotechnology industry, followed by medical appliances and equipment stocks. But those companies pay no dividends. I focused on stocks with a positive yield and a double-digit earnings growth. Finally, fourteen companies remained of which all are currently recommended to buy. The mostly represented companies are from the healthcare plans industry.



Here are my favorite stocks:
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WellPoint (NYSE:WLP) has a market capitalization of $20.07 billion. The company employs 37,700 people, generates revenue of $60.71 billion and has a net income of $2.65 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.72 billion. The EBITDA margin is 7.78 percent (the operating margin is 6.52 percent and the net profit margin 4.36 percent).

Financial Analysis: The total debt represents 18.83 percent of the company’s assets and the total debt in relation to the equity amounts to 42.06 percent. Due to the financial situation, a return on equity of 11.24 percent was realized. Twelve trailing months earnings per share reached a value of $7.32. Last fiscal year, the company paid $1.00 in the form of dividends to shareholders. The earnings per share are expected to grow by 10.10 percent yearly over the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 8.43, the P/S ratio is 0.33 and the P/B ratio is finally 0.90. The dividend yield amounts to 1.86 percent and the beta ratio has a value of 0.95.


Long-Term Stock History Chart Of WellPoint (Click to enlarge)
Long-Term Dividends History of WellPoint (WLP) (Click to enlarge)
Long-Term Dividend Yield History of WellPoint (NYSE: WLP) (Click to enlarge)

Novo Nordisk (NYSE:NVO) has a market capitalization of $102.86 billion. The company employs 33,501 people, generates revenue of $11.51 billion and has a net income of $2.97 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.31 billion. The EBITDA margin is 37.48 percent (the operating margin is 33.72 percent and the net profit margin 25.77 percent).

Financial Analysis: The total debt represents 1.32 percent of the company’s assets and the total debt in relation to the equity amounts to 2.28 percent. Due to the financial situation, a return on equity of 45.95 percent was realized. Twelve trailing months earnings per share reached a value of $6.38. Last fiscal year, the company paid $2.43 in the form of dividends to shareholders. The earnings per share are expected to grow by 16.45 percent yearly over the next five years. The company has the biggest eps growth forecast of all healthcare dividend stocks.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 24.81, the P/S ratio is 6.21 and the P/B ratio is finally 13.52. The dividend yield amounts to 1.59 percent and the beta ratio has a value of 0.55.


Long-Term Stock History Chart Of Novo Nordisk (Click to enlarge)
Long-Term Dividends History of Novo Nordisk (NVO) (Click to enlarge)
Long-Term Dividend Yield History of Novo Nordisk (NYSE: NVO) (Click to enlarge)

UnitedHealth Group (NYSE:UNH) has a market capitalization of $58.17 billion. The company employs 99,000 people, generates revenue of $101.86 billion and has a net income of $5.14 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.59 billion. The EBITDA margin is 9.41 percent (the operating margin is 8.31 percent and the net profit margin 5.05 percent).

Financial Analysis: The total debt represents 17.14 percent of the company’s assets and the total debt in relation to the equity amounts to 41.14 percent. Due to the financial situation, a return on equity of 19.00 percent was realized. Twelve trailing months earnings per share reached a value of $5.25. Last fiscal year, the company paid $0.61 in the form of dividends to shareholders. The earnings per share are expected to grow by 11.20 percent yearly over the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 10.84, the P/S ratio is 0.57 and the P/B ratio is finally 2.09. The dividend yield amounts to 1.49 percent and the beta ratio has a value of 0.93.


Long-Term Stock History Chart Of UnitedHealth Group (Click to enlarge)
Long-Term Dividends History of UnitedHealth Group (UNH) (Click to enlarge)
Long-Term Dividend Yield History of UnitedHealth Group (NYSE: UNH) (Click to enlarge)

Zimmer Holdings (NYSE:ZMH) has a market capitalization of $11.45 billion. The company employs 8,500 people, generates revenue of $4.45 billion and has a net income of $760.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.38 billion. The EBITDA margin is 31.09 percent (the operating margin is 23.00 percent and the net profit margin 17.07 percent).

Financial Analysis: The total debt represents 20.19 percent of the company’s assets and the total debt in relation to the equity amounts to 31.22 percent. Due to the financial situation, a return on equity of 13.49 percent was realized. Twelve trailing months earnings per share reached a value of $4.28. Last fiscal year, the company paid no dividends to shareholders. The earnings per share are expected to grow by 10.40 percent yearly over the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.32, the P/S ratio is 2.57 and the P/B ratio is finally 2.12. The dividend yield amounts to 1.10 percent and the beta ratio has a value of 1.01.


Long-Term Stock History Chart Of Zimmer Holdings (Click to enlarge)
Long-Term Dividends History of Zimmer Holdings (ZMH) (Click to enlarge)
Long-Term Dividend Yield History of Zimmer Holdings (NYSE: ZMH) (Click to enlarge)

Thermo Fisher Scientific (NYSE:TMO) has a market capitalization of $22.82 billion. The company employs 39,000 people, generates revenue of $11.73 billion and has a net income of $1.02 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $2.11 billion. The EBITDA margin is 17.98 percent (the operating margin is 10.62 percent and the net profit margin 8.70 percent).

Financial Analysis: The total debt represents 26.19 percent of the company’s assets and the total debt in relation to the equity amounts to 46.73 percent. Due to the financial situation, a return on equity of 6.71 percent was realized. Twelve trailing months earnings per share reached a value of $3.13. Last fiscal year, the company paid $0.13 in the form of dividends to shareholders. The earnings per share are expected to grow by 11.36 percent yearly over the next five years.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.92, the P/S ratio is 1.95 and the P/B ratio is finally 1.54. The dividend yield amounts to 0.83 percent and the beta ratio has a value of 0.78.


Long-Term Stock History Chart Of Thermo Fisher Scientific (Click to enlarge)
Long-Term Dividends History of Thermo Fisher Scientific (TMO) (Click to enlarge)
Long-Term Dividend Yield History of Thermo Fisher Scientific (NYSE: TMO) (Click to enlarge)


Take a closer look at the full table of the best healthcare growth picks. The average price to earnings ratio (P/E ratio) amounts to 16.51 and forward P/E ratio is 11.91. The dividend yield has a value of 1.36 percent. Price to book ratio is 3.78 and price to sales ratio 2.32. The operating margin amounts to 18.28 percent. The average stock is low leveraged and has a debt to equity ratio of 0.50.

Here is the full table with some fundamentals (TTM):

14 Best Healthcare Growth Picks (Click to enlarge)


Related stock ticker symbols:
NVO, AGN, PRGO, TMO, UNH, AMGN, STJ, FMS, ZMH, AET, HUM, COV, WLP, SYK

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* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.