7 Healthcare Stocks Soaring on Election Results

Stocks to buy

U.S. equities are surging strongly on Wednesday as the Democrats emerged with a narrow majority in the House of Representatives following a bitter mid-term election contest. The Republicans expanded their majority in the Senate. The outcome should be a mix of gridlock (especially on trade) and possible action on infrastructure, both of which the market seems excited about.

But above all this, the Democrats’ ran on the healthcare issue — concerning both their focus on protecting the gains in coverage expansion under Obamacare and also on things like lowering prescription drug prices — something that GOP Senate Majority leader McConnell and President Donald Trump have both voiced support for this morning.

As a result, the Health Care Sector SPDR (NYSEARCA:XLV) is rallying 2.8% so far today vs. a 1.9% gain for the Dow Jones Industrial Average, returning to the highs seen in the middle of October.

Here are seven key healthcare stocks powering the move higher on the hope price relief will drive increased unit sales and thus, higher revenues:

Healthcare Stocks to Buy: Merck (MRK)

Merck (NYSE:MRK) shares are breaking higher on Wednesday, pushing up and out of a three-month consolidation range to set new highs. This marks a gain of more than 44% from the lows set in April. Investors have been excited about higher demand for its GARDASIL 9 HPV vaccine.

The company will next report results on Feb. 1 before the bell. Analysts are looking for earnings of $1.05 per share on revenues of $10.99 billion. When the company last reported on Oct. 25 earnings of $1.19 per share beat estimates by five cents on a 4.5% rise in revenues.

Healthcare Stocks to Buy: Pfizer (PFE)

Pfizer (NYSE:PFE) shares are pushing up and out of a two-month downtrend in what looks like an attempt at the early October highs after bouncing off of support at its 50-day moving average. Investors have had a lot to consider lately, from reports of a potential sale of its women’s health portfolio to a recent downgrade by analysts at BMO Capital Markets.

The company will next report results on Jan. 29 before the bell. Analysts are looking for earnings of 65 cents per share on revenues of $13.9 billion. When the company last reported on Oct. 30 earnings of 78 cents per share beat estimates by three cents on a 1% rise in revenues.

Healthcare Stocks to Buy: Eli Lilly (LLY)

Shares of Eli Lilly (NYSE:LLY) have pushed back up and over their 50-day moving average, catching support at the lower end of a four-month sideways range. Already up nearly 50% from the lows seen in May, watch for an early 5% gain to test the early October highs.

The company will next report results on Feb. 5 before the market. When the company last reported on Nov. 6, earnings of $1.39 beat estimates by four cents on a 7.1% rise in revenues. The top-line lift was spurred by a 12% increase in volumes which offset a 4% drop in prices.

Healthcare Stocks to Buy: AbbVie (ABBV)

Shares of AbbVie (NYSE:ABBV) are climbing back up and over their 20-day moving average in what looks like an attempt to return to the trading range that has prevailed for most of the year to date — centered around the $95-a-share level. Management recently raised both the company’s dividend and their forward guidance on solid HUMIRA sales.

The company will next report results on Jan. 25 before the bell. Analysts are looking for earnings of $1.93 per share on revenues of $8.4 billion. When the company last reported on Nov. 2 earnings of $2.14 per share beat estimates by 13 cents on a 17.7% rise in revenues.

Healthcare Stocks to Buy: Amgen (AMGN)

Amgen (NASDAQ:AMGN) shares are emerging from a three-month downtrend to close back in on its 200-day moving average after a nice looking tap of its 200-day moving average. Merely a return to its late September high would be worth a 7%-plus gain from here. The company recently reported positive clinical benefits for REPATHA for patients with established cardiovascular disease.

The company will next report results on Jan. 31 after the close. Analysts are looking for earnings of $3.27 per share on revenues of $5.9 billion. When the company last reported on Oct. 30, earnings of $3.69 per share beat estimates by 24 cents on a 2.3% rise in revenues.

Healthcare Stocks to Buy: Biogen (BIIB)

Biogen (NASDAQ:BIIB) shares have recovered back above their 200-day moving average and are closing in on their 50-day average setting up a possible move back to the upper end of a multi-month trading range near $360. Such a move would be worth a gain of more than 9% from here.

Management recently highlighted that the number of commercial patients receiving SPINRAZA for spinal muscular atrophy increased 11% in the United States and 29% outside the U.S.

The company will next report results on January 24 before the bell. Analysts are looking for earnings of $6.73 per share on $6.7 billion in revenues. When the company last reported on October 23, earnings of $7.40 beat estimates by 64 cents on an 11.7% rise in revenue.

Healthcare Stocks to Buy: UnitedHealth Group (UNH)

Shares of insurer UnitedHealth (NYSE:UNH) are surging more than 4% higher on Wednesday to eclipse the highs seen in September and October — marking a rise of nearly 8% from the lows seen in late October. Not only are the Democrat’s gain of the House bolstering sentiment here — on their focus on expanding coverage — but solid earnings from competitor Humana (NYSE:HUM) are helping as well.

The company will next report results on Jan. 15 before the bell. Analysts are looking for earnings of $3.22 per share on revenues of $58.1 billion. When the company last reported on Oct. 16, earnings of $3.41 per share beat estimates by 11 cents on a 12.4% rise in revenues.

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