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May 16, 2020, 12:51 p.m. EDT

12 health-care stocks that will be winners because of coronavirus-led trends, according to Jefferies

Changes in health services and medical technology will be accelerated by COVID-19

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By Philip van Doorn, MarketWatch


Business Wire via Associated Press

The COVID-19 pandemic has accelerated some health-care trends while opening people’s eyes to others that now seem obvious. Analysts at investment bank Jefferies have listed stocks of companies they argue are likely winners and losers from those trends.

A report called “Global Healthcare post COVID: Who benefits?” was put together by teams of health-care analysts at Jefferies’ offices in the U.S., Europe, India, Japan and Australia, and provided to the firm’s clients May 11.

If you want to invest in individual companies to take advantage of long-term post-pandemic trends, this is probably the time to make your moves, as equity markets are forward-looking.

What follows are the analysts’ expected winners and losers among stocks traded in the U.S.

Potential post-COVID-19 winners

The Jefferies analysts listed these 12 U.S.-traded companies as “winners” in the post-pandemic environment:

Company Ticker Jefferies’ industry group Jefferies’ rating Closing price - May 11 Jefferies’ price target Implied 12-month upside potential
Perrigo Co. PLC /zigman2/quotes/201110862/composite PRGO Pharmaceuticals Hold $53.40 $51 -4%
Amedisys Inc. /zigman2/quotes/207929745/composite AMED Health Services Buy $178.03 $210 18%
Encompass Health Corp. /zigman2/quotes/201720136/composite EHC Health Services Buy $68.36 $100 46%
LHC Group Inc. /zigman2/quotes/207684916/composite LHCG Health Services Buy $142.86 $150 5%
Centene Corp. /zigman2/quotes/208900023/composite CNC Health Services Buy $67.54 $85 26%
Cerner Corp. /zigman2/quotes/209885277/composite CERN Health Services Buy $68.44 $90 32%
Teladoc Health Inc. /zigman2/quotes/207420252/composite TDOC Health Services Hold $190.62 $151 -21%
DexCom Inc. /zigman2/quotes/201324608/composite DXCM Medtech Buy $421.36 $369 -12%
Hologic Inc. /zigman2/quotes/201671131/composite HOLX Medtech Buy $52.81 $64 21%
Bio-Rad Laboratories Inc. Class A /zigman2/quotes/207953537/composite BIO Medtech Buy $470.35 $500 6%
Danaher Corp. /zigman2/quotes/210555154/composite DHR Medtech Buy $161.71 $185 14%
Thermo Fisher Scientific Inc. /zigman2/quotes/201150432/composite TMO Medtech Hold $340.39 $350 3%
Source: FactSt

You can click on the tickers for more about each company.

You will need to scroll the table to see all the data.

Potential post-COVID-19 losers

Here are the five U.S.-traded stocks included on the analysts’ list of expected “losers” from trends during and after the coronavirus pandemic:

Company Ticker Jefferies’ industry group Jefferies’ rating Closing price - May 11 Jefferies’ price target Implied 12-month upside potential
CVS Health Corp. /zigman2/quotes/209664499/composite CVS Pharmaceuticals Hold $63.84 $73 14%
Walgreens Boots Alliance Inc. /zigman2/quotes/203410933/composite WBA Health Services Hold $41.71 $44 5%
Anthem Inc. /zigman2/quotes/203808743/composite ANTM Health Services Hold $272.37 $257 -6%
Henry Schein Inc. /zigman2/quotes/208390163/composite HSIC Health Services Hold $55.47 $55 -1%
Patterson Cos. Inc. /zigman2/quotes/205416678/composite PDCO Health Services Hold $16.42 $16 -3%
Source: FactSet

The trends that drive the stock picks

Health services

For health-services companies, the analysts pointed to a trend that those with foresight may have identified before the terrible events of 2020: “Asset-heavy, inpatient-focused companies are likely to be at a disadvantage to leaner peers that are more focused on outpatients, diagnostic testing and using big data post-COVID.”

/zigman2/quotes/201110862/composite
US : U.S.: NYSE
$ 47.93
-0.48 -0.98%
Volume: 510,085
Nov. 25, 2020 7:00p
P/E Ratio
N/A
Dividend Yield
1.88%
Market Cap
$6.64 billion
Rev. per Employee
$431,875
loading...
/zigman2/quotes/207929745/composite
US : U.S.: Nasdaq
$ 235.18
+3.88 +1.68%
Volume: 109,364
Nov. 25, 2020 4:00p
P/E Ratio
47.06
Dividend Yield
N/A
Market Cap
$7.59 billion
Rev. per Employee
$91,814
loading...
/zigman2/quotes/201720136/composite
US : U.S.: NYSE
$ 82.41
-0.43 -0.52%
Volume: 492,609
Nov. 25, 2020 7:00p
P/E Ratio
30.91
Dividend Yield
1.36%
Market Cap
$8.24 billion
Rev. per Employee
$145,866
loading...
/zigman2/quotes/207684916/composite
US : U.S.: Nasdaq
$ 196.83
-0.35 -0.18%
Volume: 150,037
Nov. 25, 2020 4:00p
P/E Ratio
59.84
Dividend Yield
N/A
Market Cap
$6.23 billion
Rev. per Employee
$68,431
loading...
/zigman2/quotes/208900023/composite
US : U.S.: NYSE
$ 62.19
-1.20 -1.89%
Volume: 3.70M
Nov. 25, 2020 7:00p
P/E Ratio
17.27
Dividend Yield
N/A
Market Cap
$36.75 billion
Rev. per Employee
$1.32M
loading...
/zigman2/quotes/209885277/composite
US : U.S.: Nasdaq
$ 74.12
-0.25 -0.34%
Volume: 863,946
Nov. 25, 2020 4:00p
P/E Ratio
28.98
Dividend Yield
0.97%
Market Cap
$22.80 billion
Rev. per Employee
$207,759
loading...
/zigman2/quotes/207420252/composite
US : U.S.: NYSE
$ 190.59
+4.17 +2.24%
Volume: 2.11M
Nov. 25, 2020 7:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$27.02 billion
Rev. per Employee
$230,545
loading...
/zigman2/quotes/201324608/composite
US : U.S.: Nasdaq
$ 312.55
-0.77 -0.25%
Volume: 817,837
Nov. 25, 2020 4:00p
P/E Ratio
129.51
Dividend Yield
N/A
Market Cap
$30.09 billion
Rev. per Employee
$283,846
loading...
/zigman2/quotes/201671131/composite
US : U.S.: Nasdaq
$ 68.23
+0.55 +0.81%
Volume: 1.61M
Nov. 25, 2020 4:00p
P/E Ratio
16.23
Dividend Yield
N/A
Market Cap
$17.39 billion
Rev. per Employee
$649,536
loading...
/zigman2/quotes/207953537/composite
US : U.S.: NYSE
$ 523.23
+6.67 +1.29%
Volume: 302,615
Nov. 25, 2020 7:00p
P/E Ratio
4.48
Dividend Yield
N/A
Market Cap
$15.44 billion
Rev. per Employee
$284,687
loading...
/zigman2/quotes/210555154/composite
US : U.S.: NYSE
$ 217.22
-1.04 -0.48%
Volume: 3.21M
Nov. 25, 2020 7:00p
P/E Ratio
50.19
Dividend Yield
0.33%
Market Cap
$155.05 billion
Rev. per Employee
$298,518
loading...
/zigman2/quotes/201150432/composite
US : U.S.: NYSE
$ 448.45
+8.89 +2.02%
Volume: 2.65M
Nov. 25, 2020 7:00p
P/E Ratio
36.72
Dividend Yield
0.20%
Market Cap
$174.21 billion
Rev. per Employee
$340,560
loading...
/zigman2/quotes/209664499/composite
US : U.S.: NYSE
$ 67.63
-0.80 -1.17%
Volume: 6.79M
Nov. 25, 2020 7:00p
P/E Ratio
11.17
Dividend Yield
2.96%
Market Cap
$89.57 billion
Rev. per Employee
$884,748
loading...
/zigman2/quotes/203410933/composite
US : U.S.: Nasdaq
$ 39.07
+0.55 +1.43%
Volume: 6.64M
Nov. 25, 2020 4:00p
P/E Ratio
79.09
Dividend Yield
4.79%
Market Cap
$33.36 billion
Rev. per Employee
$421,562
loading...
/zigman2/quotes/203808743/composite
US : U.S.: NYSE
$ 309.05
-4.89 -1.56%
Volume: 1.18M
Nov. 25, 2020 7:00p
P/E Ratio
15.98
Dividend Yield
1.23%
Market Cap
$78.08 billion
Rev. per Employee
$1.48M
loading...
/zigman2/quotes/208390163/composite
US : U.S.: Nasdaq
$ 64.13
-0.44 -0.68%
Volume: 568,911
Nov. 25, 2020 4:00p
P/E Ratio
22.92
Dividend Yield
N/A
Market Cap
$9.22 billion
Rev. per Employee
$525,569
loading...
/zigman2/quotes/205416678/composite
US : U.S.: Nasdaq
$ 27.54
-0.71 -2.51%
Volume: 490,854
Nov. 25, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
3.78%
Market Cap
$2.72 billion
Rev. per Employee
$719,276
loading...
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