Managed Health Care
Highlights Portfolio Strategy The reward/risk profile of air freight & logistics is extremely attractive. Synchronized global growth, the capex upcycle, a falling dollar and secular advance in e-commerce compel us to add this unloved transportation sub-index to our high-conviction…
Overweight The managed health sector was shaken up this week with the announcement of another mega-merger, this time with Cigna buying the last major independent prescription benefits manager (PBM), Express Scripts, for $67 billion. This transaction follows the pending blockbuster acquisition…
Overweight A key beneficiary of a tight job market are managed health care providers who see lifts in both employer-sponsored health plans and newly-affordable individual and family health plans. With the unemployment rate touching new lows and small-business hiring plans hitting new highs (…
Managed health care stocks have performed exceptionally well since our early-April 2016 overweight recommendation, besting the market by roughly 24%. This begs the question: Is the time ripe to lock in impressive profits and move to the sidelines or is there more upside left? Leading profit…
Dear Client, Next week on November 20th instead of our regular weekly publication you will receive our flagship publication "The Bank Credit Analyst" with our annual investment outlook. Our regular publication service will resume on November 27th with our high-conviction trades for 2018. Kind…
Overweight Managed health care has been on a tear for the past five years, but 2017 has seen an acceleration, for good reason. Profit growth has been steady and the formula for a further pick up in earnings is in place, making a powerful tonic for the index. The rate of increases in drug…
The S&P managed care index has steadily outperformed the S&P 500 over the past six months. Despite this outperformance, relative valuations have barely budged, underscoring that gains remain fundamentally-driven. After surging in late-2016, our managed care cost proxy has plunged in…
The S&P managed care index is poised to break out to new, sustainable, all-time relative performance highs. The impetus behind upward momentum is fundamentally-driven. United Health raised its full year guidance, a trend that could spread through the industry if our indicators are a good…
The S&P managed care index is testing new highs relative to the broad market, aided by optimism that an ACA overhaul will mean less pressure for insurers to cover high risk, high cost subscribers. Regardless of the proposed changes, the outlook for managed care stocks remains upbeat. They…
Highlights Portfolio Strategy Bank profits are unlikely to match those of the broad market if the Fed hikes interest rates and loan demand cools. Sell into strength. Gold shares are looking increasingly attractive, but we will refrain from upgrading until the U.S. dollar is closer to a peak…