2 Cheap, High-Quality Healthcare Firms
Recent headwinds have pressured healthcare, but we believe Express Scripts and McKesson are well positioned for long-term profitability.
Vishnu Lekraj: Over the last few years there have been several headwinds that have blown through the U.S. healthcare system. The new administration, uncertainties surrounding the Affordable Care Act, and uncertainties surrounding pharmaceutical pricing have pressured several stocks within the U.S. healthcare economy. However, we believe a lot of these headwinds are undue and provide investors an opportunity here to buy stocks at cheap prices.
Currently, we believe two stocks in particular, Express Scripts and McKesson, present great opportunities to buy high-quality firms at cheap prices. Both stocks we have rated as wide moat. We believe both of these stocks are undervalued, and they're both positioned very well to produce economic profitability over a significant period.
Vishnu Lekraj does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.