Best Medical Stocks To Buy For 2017

Organovo Holdings Inc. (NASDAQ: ONVO) shares saw a handy gain on Tuesday after the bio-printer announced that it received a strong consumer response from its second tissue service. Specifically, the ExVive Human Kidney Tissue launched in September, which uses Organovos 3D bio-printed kidney tissue to study the effects of drug exposure through toxicology panels and transporter studies.

The company already has multiple commercial orders from several customers, including with two global, top 25 pharmaceutical companies.

For some background: Organovo designs and creates functional, three-dimensional human tissues for use in medical research and therapeutic applications. The company develops 3D human tissue models through internal development and in collaboration with pharmaceutical, academic and other partners. Organovo’s 3D human tissues have the potential to accelerate the drug discovery process, enabling treatments to be developed faster and at lower cost.

Best Medical Stocks To Buy For 2017: Diplomat Pharmacy, Inc.(DPLO)

Advisors’ Opinion:

  • [By Paul Ausick]

    Diplomat Pharmacy Inc. (NYSE: DPLO) dropped 7.4% Monday, posting a new 52-week low of $12.25 after closing at $13.23 on Friday. The stock’s 52-week high is $38.94. The specialty pharmacy company said this morning that revenues and adjusted EBITDA for 2016 will come in at or near the low end of the company’s previously announced range.

Best Medical Stocks To Buy For 2017: RenaissanceRe Holdings Ltd.(RNR)

Advisors’ Opinion:


    RenaissanceRe Holdings (RNR) is a global provider of reinsurance, as well as various types of insurance and related services. The company was founded in 1993 and is headquartered in Bermuda, notes Jack Adamo, editor of Insiders Plus.

Best Medical Stocks To Buy For 2017: Joy Global Inc.(JOY)

Advisors’ Opinion:

  • [By Dan Caplinger]

    Income investors appreciate stocks that pay lucrative dividends, and recently, many companies have seen the value in treating shareholders well by boosting their regular payouts. Yet a few holdouts simply don’t show their appreciation for their investors through dividends. For whatever reason, rather than having no dividend at all, Joy Global (NYSE:JOY), Textron (NYSE:TXT), and Global Payments (NYSE:GPN) maintain the tiniest of quarterly payments. Let’s look more closely at these stocks to see why they do what they do with their dividends.

Best Medical Stocks To Buy For 2017: EnLink Midstream Partners, LP(ENLK)

Advisors’ Opinion:


    EnLink Midstream Partners (ENLK) is sponsored by independent oil and gas exploration giant Devon Energy (DVN), the owner of this acreage.

    These basins offer superior economics and EnLink’s close relationship with Devon provides leveraged exposure to the upstream operator’s accelerating activity in these plays.

Best Medical Stocks To Buy For 2017: CVS Health Corporation(CVS)

Advisors’ Opinion:


    CVS Health (CVS) is a long-term winner, returning more than 14% a year over the past decade, double the yearly return of the S&P 500. It has sold off from over $110 this past summer to a recent $93, presenting a buying opportunity. The decline stems in part from management last quarter issuing 2016 earnings guidance below Wall Street expectations. Even so, it implies earnings per share growth of 10% to 14% next year. Shares now sell for 16 times projected earnings for the next four quarters, down from close to 20 times earlier this year.

    The company remains at the center of trends that could keep earnings growing at a double-digit pace through the end of the decade. Increased medical-plan coverage is driving more prescriptions. So is the aging of the baby boomers. Medical plans are looking to save on drugs, and some are turning over more business to drug-plan managers like CVS’ Caremark. Patients looking for savings, including those who remain uninsured, can take care of basic health-care needs through walk-in clinics, like CVS’ Minute Clinic chain. The stock’s dividend yield is unremarkable at 1.5%, but payments are expected to grow more than 60% cumulatively over the next three years. 
  • [By Michael K. Farr]

    CVS Health sold off from its high of over $113 to $92 recently as the company issued 2016 guidance that was below expectations. Only six weeks later, CVS increased its outlook for 2016, causing the stock to rally off recent lows to where it currently sits at around $98. We believe CVS offers value because of its undemanding valuation, its focus on returning capital to shareholders, and its exposure to long-term secular tailwinds, including increased health-care coverage, an aging population, and healthcare cost control.

    Management recently reaffirmed its long-term target of 10-14 percent EPS growth while also increasing its dividend 21 percent to $1.70 (to a 1.7 percent yield). CVS is committed to increasing its dividend payout ratio to 35 percent by 2018, which implies a compound annual growth rate of 18 percent. Also, we expect $4 billion to $5 billion in share repurchases annually. CVS currently trades at 16.9 times calendar year 16 estimated EPS. 

  • [By Keith Speights]

    CVS Health (NYSE:CVS) reported its fourth-quarter financial results on Thursday. The big pharmacy services company beat its guidance, helped primarily by a strong performance from its pharmacy benefits management (PBM) segment. The bar had been lowered, however, because CVS reduced its fourth-quarter projections three months ago in light of contract losses to Walgreens Boot Alliance (NASDAQ:WBA).


    Target (TGT) had missed projections for the last couple of quarters and didn’t have as strong growth online as some were looking for. Plus, when CVS (CVS) reported its miserable call, the stock got blasted because CVS said its drugstores in Target weren’t anything to write home about. So Target didn’t participate in the great retail rally that we had last week. Now it is front and center after that stronger-than-expected quarter. And make no mistake about it, that quarter was stronger than expected. (Disney and CVS are part of TheStreet’s Trifecta Stocks portfolio.)


    Target (TGT) — yielding 3.09%
    American Express (AXP) — yielding 1.73%
    CVS Health (CVS) — yielding 2.12%
    Wal-Mart Stores (WMT) — yielding 2.79%
    Philip Morris Int’l (PM) — yielding 4.52%
    Gap Inc. (GPS) — yielding 3.61%
    Franklin Resources (BEN) — yielding 1.80%
    T. Rowe Price (TROW) — yielding 2.83%
    Omnicom Group (OMC) — yielding 2.49%
    TJX Companies (TJX)—yielding 1.33%

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