Cardinal Health Inc (CAH-N)

XLV gives you a basket of names, with some winners and some losers. LLY is the top holding, that's a winner. Also holds JNJ and PFE, which haven't done particularly well. 

He owns NVO, MCK and CAH. He likes those companies where the only serious competition comes from 1 or 2 others, as they can control pricing power. Diabetes and weight loss are definite growth areas. See his Top Picks.

In pharma space, prefers growthy areas such as distributors like CAH and MCK.

Healthcare strong, but stock performance mediocre. Will host CEO to get more answers. 

Recently sold at slight loss, EPS won't have the growth trajectory he thought. Announcement out of left field that they lost a contract and revenue would decline substantially. Reasonably stable business. Over time, will probably be an OK holding. But now market won't have the same confidence in management to execute, stock will be hobbled. He'd look again on further decline.

Does not own shares in business. Healthcare sector has tailwinds, but unsure on direction of this particular business. Expecting growth in pharma portion of business. Overall, healthcare has strong fundamentals. 

Third largest pharma distributor in USA. Very high performing company. Stock price and margins improving. Stock is fully valued at current price, but is watching closely. Would buy on weakness. 

It is a great business and he likes the business model. The tailwind is volume since it has picked up especially with the weight loss drugs.

Distributes pharma and medical products. Largest customer is CVS. Operates in a triopoly, controlling 90% of the US wholesale industry. Pricing power leads to predictable cashflow. Aging population, weight-loss drugs, diabetes treatments will result in higher spending and volume. Shares trending steadily higher, good technical strength. 15% earnings growth going forward. Yield is 1.9%.

They just reported a revenue and earnings beat, and raised their full-year forecast, but missed operating profit and lowered their full-year forecast for the smaller medical segment. Shares tumbled yesterday and today but is still close to its all-time high. Doesn't understand the sell-off.

Though drug companies are a target of politicians citing high drug prices, it keeps printing cash. For now, it's a cheap stock that won't be hurt by higher interest rates.

Likes it after restructuring. Buy on this dip.

It has had a nice pullback here and he would buy more at $56.50. His model value is just above $66 right now.

(A Top Pick Jan 17/17. 0% return.) There are really 3 players that dominate the entire space, and she switched to the leading player, Amerisourcebergen (ABC-N).