In this article, we will discuss the 5 healthcare stocks to buy now according to billionaire Larry Robbins. If you want to read the detailed analysis of Glenview Capital and Robbins’ investment philosophy, go directly to 10 Healthcare Stocks to Buy Now According to Billionaire Larry Robbins.
5. AmerisourceBergen Corporation (NYSE:ABC)
Glenview Capital’s Stake Value: $116.4 million
Percentage of Glenview Capital’s 13F Portfolio: 2.35%
Number of Hedge Fund Holders: 37
AmerisourceBergen Corporation (NYSE:ABC) is a US-based pharmaceutical company that provides drug distribution and consulting services to medical businesses. On July 20, Argus analyst David Toung set the firm’s price target to $170, up from $160 and maintained a Buy rating on its shares. The analyst believes that the company posted strong Q2 results and its recent acquisition of Alliance Healthcare is a significant growth prospect. He also upgraded his EPS consensus for the company from $10.85 to $10.95 for FY 2022.
AmerisourceBergen Corporation (NYSE:ABC) as of July 25 delivers a dividend yield of 1.28% with an annual dividend payout of $1.84. Moreover, the company has paid out dividends of $3 billion and repurchased $10 billion worth of stock in the last decade. The net cash flow generated in the same period summed up to $17.8 billion. In addition, the company announced another $1 billion repurchase program on June 1.
AmerisourceBergen Corporation (NYSE:ABC) posted solid FQ2 results in May with an EPS of $3.22, exceeding the analyst estimates of $2.92. The revenue of $57.72 billion also outperformed the forecasts by 0.81%. AmerisourceBergen Corporation (NYSE:ABC) covered 2.35% of Glenview Capital’s portfolio at the end of Q1 2022. The fund owned company shares worth $116.4 million.
Here is what Heartland Advisors had to say about AmerisourceBergen (NYSE:ABC) Corporation in its Q3 2021 investor letter:
“The ABCs of quality.AmerisourceBergen Corp. (ABC), a leading national pharmaceutical distributor, provides an example of our approach. The company has been quietly bolstering its business model during the past few years to include animal health products for the European market and an expanded line of higher-margin, value-added services that reach beyond drug distribution. During these efforts, valuations for the company have been under pressure due to liability issues stemming from opioid litigation as well as concerns about increased scrutiny of drug prices by politicians.
Our team has been following these developments and believes the strides management has made on the business side are not being fully recognized by the market. As more clarity has emerged related to opioid litigation, we’ve increased the portfolio’s stake in AmerisourceBergen and believe the investment provides the portfolio with additional exposure to a high-quality business that is well positioned to grow despite operating in a mature industry.”
