health stocks

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Health Stocks to Buy: An Under-the-Radar Play Set to Double in 3 Years

By , Associate Editor, Money Morning • @KyleAndersonMM -

Health stocks

Finding the top health stocks to buy can help your portfolio more than double the performance of the broader markets. The S&P 500 Health Care Sector Index is up 26.5% in 2014, while the S&P 500 has gained just 11.1%.

That's why we want to tell you about this growing medical field that targets a specific audience. Most investors haven't heard of it, but it will reach $4.8 billion in 2015. And we've found the best investment to play the sector.

In fact, this under-the-radar play could double within the next three years...

Healthcare Stocks: Mergers Show How Obamacare Will Deliver Profits

By , Contributing Writer, Money Morning -

Want proof that healthcare stocks are poised to reap rewards from Obamacare?

Just take a look at this recent blockbuster healthcare merger.

Giant managed care firm WellPoint Inc. (NYSE: WLP) announced July 9 that it would buy Amerigroup Corp. (NYSE: AGP), the country's largest private Medicaid managed care company, for $4.9 billion in cash.

The day acquisition was announced, Amerigroup stock jumped 38%.

Of course, healthcare mergers and acquisitions (M&A) are nothing unusual. But a close look at this deal sheds light on the direction of the next major trend of consolidation within the industry.

In fact, when it narrowly upheld the Affordable Care Act (informally known as Obamacare), the Supreme Court unwittingly set the table for a new wave of M&A in a downtrodden healthcare space --Medicaid.

Government-sponsored programs like Medicaid and Medicare have traditionally been viewed as ho-hum businesses with razor-thin profit margins.

So why is WellPoint jumping with both feet into a business that is typically not a big money maker?

Let's take a closer look...

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