Saturday, November 27, 2010

"Maybe the medicine you need to improve your financial health can be found right in the Healthcare sector stocks"

Dow Jones Industrial Average   11092.00  (Down) week ending November 26th

I keep hearing on the news that everyone keeps talking about their
401K accounts being down so many % points and needing to be restored to health. So the doctor is in the house to see if we can give these sickly accounts a booster shot and restore them back to health. 
TEVA PHARMACEUTICAL LTD. (Symbol TEVA, $50.69) stock price, despite the company doing well, has been on "the paddles" in 2010 suffering from a case of Obamacare worries. 18 analyst's love Teva as a buy, but can't seem to get their money out of their wallet with the stock being down in price year to date. Teva's five year revenue growth rate is 22.47%. Earnings for 2010 are looking like $4.57 and for 2011 is $5.24 per share.  For disclosure's sake, I did take a position in this one because it was so ridiculously cheap here.

If you are looking for something more like a shot of adrenaline
then  Alexion Pharmaceuticals Inc. (Symbol ALXN, $76.85)
may be the medicine you need for that IRA account. If that pulse is weak, hold on, because Alexion has a 5 year revenue growth rate of 290.72%. That combined with 62.10% NET profit margins will get the heart racing a bit.

If your retirement literally needs its heart fixed up,
 Edwards Lifesciences Corp. (Symbol EW, $65.94) will take care of those valves in a jiffy. Edwards has a 3 year return over 166%. 5 year earnings growth over 22% could be just the stress test your 401K needs to get in cardiovascular shape.

If you want to get a nano solution for your 401K woes you can get your microscope and zoom in to the genetic level and get yourself fixed up with some shares of Illumina Inc. (Symbol ILMN, $61.00).
Illumina has a five year sales growth rate of 61.45%. Earnings are also growing very nicely here with 75% gross profit margins.

If you keep adding to your 401K you should keep averaging up and  you will move forward as the economy rebounds. It is harder to do that in your IRA account since you do not have a payroll deduction going in. So when you retire enjoy the small things. Life is a gift and you should always be learning. Read books, they are a very good return on your investment in yourself.

Enjoy the arrival of Winter and all it brings.




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