Archive for December, 2011

18.12.2011 healthcare 1 Comment

5 Reasons JPM Just Went Bullish On The Healthcare Industry

Business Insider by Mamta Babkar

JP Morgan is optimistic on healthcare stocks for the first time since March 2009. In a new report JP Morgan analysts cite five main reasons for the upgrade to ‘overweight’ from ‘neutral’.
Strong fundamentals – Healthcare companies have an 86% ratio of beating estimates, above the 69% average of all sectors. Free cash flow in the sector that reached $121 billion, which allows the company to pursue opportunities that can boost shareholder value. That reflects 11.3% compound annual growth since Q3 2006.
Cash return – In the past year, healthcare companies returned $78 billion to shareholders via dividends and stock buybacks. Dividends are at an all time high though buybacks are lower than then 2008 peak. Significantly a larger percent of companies are increasing their dividend payouts. read more