Gilead Sciences, Inc. (GILD), Idenix Pharmaceuticals Inc (IDIX), ZIOPHARM Oncology Inc. (ZIOP), Vanguard Health Systems, Inc. (VHS): 3 Horrendous Health-Care Stocks This Week

Vanguard Health Systems, Inc. (NYSE:VHS) announced on Sunday that it failed to gain a new contract with Arizona’s Medicaid agency. The company’s current contract expires on Sept. 30 of this year. Vanguard Health Systems, Inc. (NYSE:VHS)’s Phoenix Health Plan had served the Arizona Medicaid program for almost 30 years.

While the loss decimates the Phoenix Health Plan’s business segment, Vanguard Health Systems, Inc. (NYSE:VHS) can fall back on several other sources of revenue. The company owns and operates 28 acute care hospitals, and has managed care plans in three other locations.

Comeback kid
Which of the three horrendous stocks of the week is most likely to stage a nice comeback? I have to go with the one with the least amount to make up — Vanguard Health Systems, Inc. (NYSE:VHS). ZIOPHARM Oncology Inc. (NASDAQ:ZIOP) is a long way off from even the potential of launching a product. Idenix has at least one drug on the market, but any other possible commercial success is well in the future.

Vanguard Health Systems, Inc. (NYSE:VHS)’s hospitals and other managed care plans could do well under Obamacare — and it still has the option to appeal the Arizona decision. I wouldn’t recommend buying the stock, though. There are plenty of better picks out there. But, for the least worst of the worst for this week, Vanguard’s the best bet.

The article 3 Horrendous Health-Care Stocks This Week originally appeared on Fool.com is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences.

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