5 Best Healthcare Stocks to Buy According to Billionaire Larry Robbins

In this article, we discuss the top 5 stock picks from the healthcare sector of billionaire Larry Robbins’ hedge fund Glenview Capital Management. If you are interested in knowing about the firm’s beginnings, its recent performance and details about its current portfolio, please also check out 10 Best Healthcare Stocks to Buy According to Billionaire Larry Robbins.

5. Encompass Health Corporation (NYSE:EHC)

Glenview Capital Management’s Stake Value: $77,027,000

Percentage of Glenview Capital Management’s 13F Portfolio: 1.92%

Number of Hedge Fund Holders: 34

Encompass Health Corporation (NYSE:EHC) saw a tremendous rise in its popularity among smart money investors beginning in mid-2019. Among the hedge funds tracked by Insider Monkey, the number of funds that disclosed a stake in Encompass Health Corporation (NYSE:EHC) more than doubled to 48 at the end of Q1 2022 from just 23 funds at the end of Q3 2019. However, during the second quarter, several funds sold their entire stake in this Birmingham, Alabama-based healthcare services provider, and that number fell to 34. Funds that disposed of their entire holdings in Q2 included Chuck Royce’s Royce & Associates and Peter Muller’s PDT Partners.

Encompass Health Corporation (NYSE:EHC) has consistently paid its shareholders a quarterly dividend for the past 8 years. In addition, it recently increased its quarterly dividend by 27.2% to $0.28 per share, which translates into a respectable annual dividend yield of 2.3% based on the stock’s last closing price. On September 21, analysts at Credit Suisse Group reiterated their ‘Outperform’ rating on the stock but lowered their price target to $62 from $63, which still represents a potential upside of close to 27% from the price at which the stock currently trades.