This Weekend my eyes and thoughts
curved around the Healthcare sector.
I read several interesting articles from
the sector, mostly about the biotech’s and new Hepatitis C drugs from Gilead, Sovaldi
and Harvoni.
Those are very
expensive drugs with potential to kill the current medical systems but they also generate tons of cash for their corporate.
I also noticed
that the Healthcare sector grows at a much faster pace than the economy does,
with 10+ percent. How can you benefit from this trend? I don't know. Prices are high, even on free
cash flow basis.
Second, the old
synthetic drug cash cow system from Pfizer doesn't work anymore. PFE is losing
revenues. Even Teva, a generic drug manufacturer, struggles.
In order to get an
overview about modest valuated growth stocks from the Healthcare sector, I've
created a screen for large capitalized sector members with the following main
criteria:
- EPS growth next
five years: over 5 percent
- Sales growth
past five years: over 5 percent
- Forward P/E
under 20
- Positive
Dividend