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What I Have Been Up To - Health Care Stocks

|Includes: Health Care Select Sect SPDR ETF (XLV)

I have not had a good history in beating the health care EFT XLV - but I did beat it in 2017 and thus far in 2018. Previously, I had gone with the explanation that most bio-tech did not pay dividends ( Biogen Idec Inc. - Celgene Corporation - Regeneron Pharmaceuticals ) - and this retired investor buys dividend growth companies. That explanation would have been true in 2014 and 2015 (and will probably be true again) - but it has not been true in 2016, 2017 and 2018 year to date.

After three years of watching a small coverage universe of non-dividend paying bio-tech - I have failed to see consistent out performance there. This is what a test of that observation appear like when testing it with Seeking Alpha tools.

nonDivPharma

Here is the history of my full stock portfolio by year and sector:

My Historical Portfolio Performance by sector vs Each Sector Index
REITs MLPs Consumer Banks Pharma Industrial Tech BDCs Total vs S&P My Mutuals vs Index
My Stocks 2017 0.67% -1.96% 8.54% 12.13% 27.99% 29.31% 30.86% 1.93% 10.64% 18.50%
Index 4.13% -9.50% 15.05% 10.38% 21.70% 22.53% 34.05% -0.55% 21.53% 20.53%
My Stocks 2016 4.31% 11.94% 7.29% 30.35% -8.53% 24.18% 19.03% 29.84% 12.76% 8.61%
Index 5.50% 14.38% 0.79% 30.25% -3.18% 19.99% 14.81% 20.75% 11.90% 11.61%
My Stocks 2015 4.84% -30.02% 11.07% -5.15% 8.45% -16.90% -6.00% -5.12% -10.66% -3.32%
Index 4.92% -31.39% 6.63% 2.76% 6.85% -3.94% 4.98% -3.43% 1.23% -1.30%
My Stocks 2014 32.04% 8.71% 11.54% 1.32% 11.54% 9.59% 8.47% -2.20% 10.03% 1.50%
Index 32.47% 5.90% 6.42% 2.76% 24.53% 9.37% 17.71% -8.16% 13.37% 6.28%

My goal is to get the yield I need mainly from moderate and low PWAY (portfolio weighted average yield - or - the yield on the stuff that they own) BDCs - and to some extent from MLPs and REITs. I also have a goal of having more than 5% total year over year income growth in my total dividend income. I have not touched capital. I have only lived upon dividends. I want that to continue for the rest of my years. I want a high portion of my investments to have very well rated debt and superior debt metrics.

For 2018 - my stocks have a total return of 8.13% compared to the XLV's 6.45%:

1-01 Current Current Shares 1-01 Current Change Percent Change YTD Run Rate
Health Care Price Price Yield Total Total Price Pr + Div Income Annual Income
ABC - 91.82 87.91 1.73 199 18272 17494 -778 -4.26 -3.43 151.24 302.48
ABT - 57.07 63.06 1.78 351 20032 22134 2102 10.50 11.48 196.56 393.12
AMGN - 173.90 195.91 2.70 110 19129 21550 2421 12.66 14.17 290.40 580.80
BDX - 214.06 247.10 1.21 65 13914 16062 2148 15.43 16.14 97.50 195.00
MDT - 80.75 88.36 2.08 143 11547 12635 1088 9.42 10.56 131.56 263.12
NVO - 53.67 49.88 1.64 309 16584 15413 -1171 -7.06 -6.30 126.69 253.38
SYK - 154.84 174.30 1.08 165 25549 28760 3211 12.57 13.17 155.10 310.20
Averages/Totals 125027 134048 9021 7.22 8.13 1149.05 2298.10

ABC - while being down - is the best performing 'distribution' sector stock. NVO - while being down - is the best performing non-USA stock (beating Bayer, Roche and Sanofi).

ABT, AMGN, BDX, MDT and SYK are having good years. Only AMGN could be placed in the pharmacy sub-sector - the rest are in the medical device sub-sector.

And over weighting that sub-sector has been the recent key to my success.

I began my recent research with a look at the weighting of the XLV:

Pharmaceuticals                          41.76%

Healthcare Equipment & Supplies  24.69%

Healthcare Providers & Services    16.76%

Biotechnology & Medical Research 11.60%

Food & Drug Retailing                    5.20%

I had ignored the 'Healthcare Providers and Service' sub-sector when I built my healthcare coverage universe - see 'Health Care / Pharma Stocks 06/29/18' recently posted in my blog.

Here is half the due diligence I needed to do to prove the omission was a major mistake.

healthcare

Here is the second half of that diligence:

Price Changes and Total Returns Since the Beginning of 2012, 2011 and 2010Dividend growth calculates the current dividend minus the Q4-09 dividend divided by the Q4-09 dividend

06-29-18 12-31-11 Change 12-31-10 Change 12-31-09 Change Div Grth
Company Price Price Price Pr+Dist Price Price Pr+Dist Price Price Pr+Dist Since 10

Agilent Technologies A 61.84 34.93 77.04% 81.48% 41.43 49.26% 53.01% 31.07 99.03% 104.03%
AmerisourceBergen Corporation ABC 85.27 37.19 129.28% 140.06% 34.12 149.91% 163.01% 26.07 227.08% 245.53% 325.00
Abbott Laboratories ABT 60.99 28.11 116.97% 129.85% 23.95 154.66% 173.54% 27.00 125.89% 145.70% 35.42
Amgen Inc. AMGN 184.59 64.21 187.48% 202.93% 54.90 236.23% 255.32% 56.57 226.30% 244.83%
AstraZeneca PLC AZN 35.11 23.15 51.66% 77.37% 13.10 168.02% 224.12% 23.47 49.60% 86.33% 21.53
Baxter International Inc. BAX 73.84 26.88 174.70% 189.28% 27.50 168.51% 185.26% 31.87 131.69% 148.16% -26.99
Bayer AG BAYRY 27.58 15.95 72.92% 87.82% 18.34 50.38% 65.53% 19.95 38.25% 53.85% 105.24
Becton, Dickinson and Company BDX 239.56 74.72 220.61% 232.74% 73.36 226.55% 241.20% 78.86 203.78% 219.33% 78.38
Bristol-Myers Squibb Company BMY 55.34 35.24 57.04% 74.23% 26.48 108.99% 136.90% 25.25 119.17% 153.54% 18.75
Bruker Corp BRKR 28.76 12.42 131.56% 131.88% 16.60 73.25% 73.49% 12.06 138.47% 138.81%
Cardinal Health, Inc. CAH 48.83 40.61 20.24% 33.47% 38.31 27.46% 43.68% 32.24 51.46% 73.08% 121.14
Quest Diagnostics DGX 109.94 58.06 89.36% 98.00% 53.97 103.71% 113.75% 60.38 82.08% 91.72% 280.00
Gilead Sciences Inc. GILD 70.84 20.28 249.31% 266.27% 18.12 290.95% 309.93% 21.64 227.36% 243.25%
GlaxoSmithKline PLC GSK 40.31 45.63 -11.66% 12.25% 39.22 2.78% 36.21% 42.25 -4.59% 31.17% 53.27
Hill-Rom Holdings HRC 87.34 34.28 154.78% 162.00% 39.37 121.84% 129.27% 23.99 264.07% 277.97% 65.85
Johnson & Johnson JNJ 121.34 65.58 85.03% 102.49% 61.85 96.18% 118.33% 64.41 88.39% 112.93% 53.06
Eli Lilly and Company LLY 85.33 41.56 105.32% 125.51% 35.04 143.52% 173.06% 35.71 138.95% 173.42% 4.08
McKesson Corporation MCK 133.40 77.91 71.22% 76.33% 70.38 89.54% 96.28% 62.50 113.44% 122.18% 124.00
Medtronic Inc. MDT 85.61 38.25 123.82% 137.26% 37.09 130.82% 147.26% 43.98 94.66% 110.52% 85.37
Merck & Co. Inc. MRK 60.70 37.70 61.01% 80.77% 36.04 68.42% 93.42% 36.54 66.12% 94.94% 21.05
Novo Nordisk A/S NVO 46.12 23.05 100.09% 112.91% 22.51 104.89% 119.63% 12.77 261.16% 289.36% 342.31
Novartis AG NVS 75.54 57.17 32.13% 50.58% 58.95 28.14% 50.02% 54.43 38.78% 66.15% 33.91
Pfizer Inc. PFE 36.28 21.64 67.65% 87.52% 17.51 107.20% 136.32% 18.19 99.45% 131.45% 87.50
Perrigo Company PLC PRGO 72.91 97.30 -25.07% -23.26% 66.33 9.92% 13.00% 39.83 83.05% 88.84% 130.16
Roche Holding AG RHHBY 27.63 21.32 29.60% 49.92% 18.33 50.74% 79.06% 21.10 30.95% 58.86% 88.54
Shire PLC SHPG 168.80 103.90 62.46% 64.76% 58.70 187.56% 192.08% 44.78 276.95% 283.32% 263.96
Smith & Nephew PLC SNN 37.53 19.26 94.86% 110.65% 21.02 78.54% 93.01% 20.50 83.07% 97.91%
Sanofi SNY 40.01 36.54 9.50% 26.75% 32.23 24.14% 49.35% 39.27 1.88% 26.72% -20.80
Steris PLC STE 105.01 29.82 252.15% 260.56% 36.46 188.01% 194.90% 27.97 275.44% 284.41%
Stryker Corporation SYK 168.86 49.71 239.69% 249.87% 53.70 214.45% 225.27% 50.37 235.24% 248.03% 153.33
Teva Pharmaceutical Industries TEVA 24.32 40.36 -39.74% -26.39% 52.13 -53.35% -41.28% 56.18 -56.71% -44.18% 115.19
Thermo Fisher Scientific, Inc TMO 207.14 44.97 360.62% 366.16% 55.36 274.17% 279.14% 47.69 334.35% 340.11%
Zimmer Biomet Holdings, Inc. ZBH 111.44 53.42 108.61% 115.16% 53.68 107.60% 114.12% 59.11 88.53% 94.45%
Aetna Inc. AET 183.50 42.19 334.94% 340.98% 30.51 501.44% 509.80% 31.70 478.86% 486.91%
Anthem, Inc. ANTM 238.03 66.25 259.29% 264.71% 56.86 318.62% 324.93% 58.29 308.35% 314.51%
Humana Inc. HUM 297.62 87.61 239.71% 243.55% 54.74 443.70% 449.84% 43.89 578.10% 585.76%
UnitedHealth UNH 245.34 50.68 384.10% 395.21% 36.11 579.42% 596.61% 10.00 2353.40% 2418.57% 1566.67

126.44% 138.69% 152.06% 168.06% 214.92% 233.58%

Given that you have seen what the (intended) "Health care plans" sub-sector and bio-tech sub-sector looks like compared to the ETF XLV - let me continue by showing two more sub-sectors.

What a pharmaceutical group looks like:

pharma

What the medical device group looks like:

MedDevice

And that is why my new coverage universe currently looks like this - with the hope of also adding (name - ticker - market cap - yield)

ResMed Inc. (RMD $15bln 1.33% yld Medical Instruments & Supplies)

DENTSPLY SIRONA Inc. (XRAY 10.31 bln 0.77%)

to the freshly added BRKR, HRC, SHPG, SNN and STE.

The new coverage universe:

Health Care / Pharma Stocks 06-29-18 Yield in the spreadsheet below is based on the Q2-18 dividend. Header abbreviations: Div = dividend; EPS = earnings per share; LTM = last twelve months; YTD = year to date. Companies that pay dividends less than 4 times per year have had their annual payouts divided by four and encoded in this data as if they paid a quarterly dividend. AZN pays two unidentical dividends per year. I take the sum of those dividends and divide by four. The last four columns measure the percentage change in the 2018 EPS projection; the change in the price target since the beginning of the year; the change in the dividend since Q2-17; and the average yearly change in the dividend since Q2-15. BDX acquired Bard for $317.00 on 12/29/17.

Div Current Div/ Div/ Percent Change
Company and ticker Price /Quarter Yield EPS17 EPS18 Price Pr+Div EPS18 EPS19 Target Div 1yr Div 3yr
Agilent Technologies (NYSE:A) 61.84 0.149 0.96 22.3% 20.3% -7.66 -7.22 3.49 2.80 2.94 12.88 14.22
AbbVie Inc. (NYSE:ABBV) 92.65 0.960 4.14 49.2% 43.5% -4.20 -2.21 18.90 12.06 13.05 50.00 24.68
AmerisourceBergen Corporation (NYSE:ABC) 85.27 0.380 1.78 23.5% 21.0% -7.13 -6.31 6.43 9.19 8.32 4.11 9.57
Abbott Laboratories (NYSE:ABT) 60.99 0.280 1.84 39.2% 34.7% 6.87 7.85 1.06 1.25 11.01 5.66 5.31
Amgen Inc. (NASDAQ:AMGN) 184.59 1.320 2.86 38.6% 37.4% 6.15 7.67 7.05 8.53 2.37 14.78 18.79
AstraZeneca PLC (NYSE:AZN) 35.11 0.343 3.90 81.5% 71.4% 1.18 2.17 -6.67 0.00 -0.91 -0.00 -0.71
Baxter International Inc. (NYSE:BAX) 73.84 0.190 1.03 26.3% 23.6% 14.23 14.82 6.64 5.23 13.73 18.75 -4.05
Bayer AG (OTCPK:BAYRY) 27.58 0.182 2.65 24.3% 29.3% -11.29 -10.12 0.00 -31.40 -3.86 0.00 4.68
Becton, Dickinson and Company (NYSE:BDX) 239.56 0.750 1.25 27.3% 23.7% 11.91 12.61 2.71 7.12 3.64 2.74 7.78
Bristol-Myers Squibb Company (NYSE:BMY) 55.34 0.400 2.89 46.8% 43.8% -9.69 -8.39 8.57 -3.69 -10.24 2.56 2.63
Bruker Corp (NASDAQ:BRKR) 28.76 0.040 0.56 11.5% 10.5% -16.44 -16.21 2.21 14.18 0.00 0.00 na
Cardinal Health, Inc. (NYSE:CAH) 48.83 0.476 3.90 38.7% 37.0% -20.30 -18.75 -0.61 -6.02 -12.67 3.03 7.32
Quest Diagnostics (NYSE:DGX) 109.94 0.500 1.82 30.3% 28.6% 11.63 12.64 15.16 16.31 14.71 11.11 9.62
Gilead Sciences Inc. (NASDAQ:GILD) 70.84 0.570 3.22 39.7% 36.7% -1.12 0.47 -14.43 -11.90 0.69 9.62 9.85
GlaxoSmithKline PLC (NYSE:GSK) 40.31 0.544 5.40 78.0% 75.0% 13.65 16.71 -1.06 2.47 -1.38 10.57 -5.56
Hill-Rom Holdings (NYSE:HRC) 87.34 0.200 0.92 17.3% 15.7% 3.62 4.09 19.69 10.61 0.00 11.11 7.75
Johnson & Johnson (NYSE:JNJ) 121.34 0.900 2.97 44.3% 41.6% -13.15 -11.87 3.57 2.49 -2.21 7.14 6.27
Eli Lilly and Company (NYSE:LLY) 85.33 0.563 2.64 43.6% 41.2% 1.03 2.36 10.97 6.63 -0.96 8.27 4.08
McKesson Corporation (NYSE:MCK) 133.40 0.340 1.02 10.2% 9.4% -14.46 -14.02 9.35 12.65 -2.17 21.43 12.70
Medtronic Inc. (NYSE:MDT) 85.61 0.460 2.15 35.9% 33.0% 6.02 7.16 7.34 8.35 4.87 6.98 6.71
Merck & Co. Inc. (NYSE:MRK) 60.70 0.480 3.16 45.5% 42.3% 7.87 9.58 3.43 5.34 5.87 2.13 2.17
Novo Nordisk A/S (NYSE:NVO) 46.12 0.229 1.98 36.4% 35.4% -14.07 -13.22 0.00 1.98 0.00 12.84 7.31
Novartis AG (NYSE:NVS) 75.54 0.477 2.53 36.6% 34.3% -10.03 -8.89 3.16 -2.80 -5.20 -17.12 -5.05
Pfizer Inc. (NYSE:PFE) 36.28 0.340 3.75 45.9% 44.4% 0.17 2.04 8.03 7.75 4.10 6.25 6.69
Perrigo Company PLC (NASDAQ:PRGO) 72.91 0.190 1.04 14.4% 13.4% -16.35 -15.91 -2.05 -2.07 1.55 18.75 15.03
Roche Holding AG (OTCQX:RHHBY) 27.63 0.278 4.03 54.8% 54.8% -12.51 -10.75 0.00 -4.69 -7.97 11.30 1.18
Shire PLC (NASDAQ:SHPG) 168.80 0.262 0.62 6.9% 6.4% 8.82 9.16 0.13 0.49 0.00 14.99 15.02
Smith & Nephew PLC (NYSE:SNN) 37.53 0.170 1.81 35.2% 32.5% 7.20 8.17 0.00 0.00 0.00 11.84 -9.73
Sanofi (NYSE:SNY) 40.01 0.313 3.13 39.0% 36.4% -6.95 -5.50 -5.03 -8.51 -11.11 14.13 5.08
Steris PLC (NYSE:STE) 105.01 0.310 1.18 26.3% 23.7% 20.05 20.76 0.43 0.97 0.00 10.71 10.47
Stryker Corporation (NYSE:SYK) 168.86 0.470 1.11 26.0% 23.7% 9.05 9.66 1.40 1.15 13.02 10.59 10.86
Teva Pharmaceutical Industries (NYSE:TEVA) 24.32 0.072 1.18 11.2% 11.0% 28.34 29.10 -8.54 -13.53 8.58 -78.82 -26.27
Thermo Fisher Scientific, Inc (NYSE:TMO) 207.14 0.170 0.33 6.2% 5.6% 9.09 9.27 3.51 3.14 12.83 13.33 4.44
Zimmer Biomet Holdings, Inc. (NYSE:ZBH) 111.44 0.240 0.86 12.5% 12.0% -7.65 -7.25 -6.35 -9.79 -1.05 0.00 3.03
Zoetis Inc. (NYSE:ZTS) 85.19 0.126 0.59 16.5% 14.7% 18.25 18.60 12.50 11.73 19.13 20.00 15.23
Aetna Inc. (NYSE:AET) 183.50 0.500 1.09 18.2% 16.5% 1.72 2.28 0.73 -0.58 0.00 0.00 33.33
Anthem, Inc. (NYSE:ANTM) 238.03 0.750 1.26 19.5% 17.7% 5.79 6.45 1.78 1.38 0.00 15.38 6.46
HCA Healthcare (NYSE:HCA) 102.60 0.350 1.36 15.9% 14.8% 16.80 17.60 1.61 0.00 0.00 0.00 na
Humana Inc. (NYSE:HUM) 297.62 0.500 0.67 14.3% 11.9% 19.97 20.38 0.72 2.12 0.00 25.00 20.98
UnitedHealth (NYSE:UNH) 245.34 0.900 1.47 28.5% 25.2% 11.29 12.10 0.64 1.86 0.00 20.00 21.67
Average 2.03 31.0% 28.9% 1.69 2.68 2.91 2.02 7.80 7.36
With the 10 Treasury at 2.86% and the sector average yield on Q2 dividends at 2.32% - the spread is -54 basis points.
The cap weighted ETF XLV has changed 0.94% year to date - with dividends included, its total return is 1.69%.
The yield on the XLV is 1.50% using the sum of LTM dividends - while LTM dividend growth is 7.47%.

The Predictive Power of subsector on Valuations: There is a huge difference in the type of products or services that this universe produces. Could that difference account for differences in performance and valuation? Note: Some companies are so well diversified that the sub-sector assignment is partially arbitrary.

The following stocks were in the Distribution sub-sector: ABC , CAH , MCK . Their YTD mean price gain = -13.97% and 0 of the 3 beat the sector mean yearly price gain of 1.93%. Their mean yield = 2.23% and they had an average price/earnings ratio = 11.04. Their mean LTM dividend growth = 9.52% and they had an average CAGR projection of 27.67.

The following stocks were in the Medical devices sub-sector: ABT , BAX , BDX , MDT , SNN , STE , SYK . Their YTD mean price gain = 10.76% and 7 of the 7 beat the sector mean yearly price gain. Their mean yield = 1.48% and they had an average price/earnings ratio = 21.50. Their mean LTM dividend growth = 9.61% and they had an average CAGR projection of 8.86.

The following stocks were in the Pharmaceutical sub-sector: ABBV , AMGN , AZN , BAYRY , BMY , GSK , JNJ , LLY , MRK , NVO , NVS , PFE , RHHBY , SHPG , SNY , TEVA , ZBH , ZTS . Their YTD mean price gain = -0.23% and 6 of the 18 beat the sector mean yearly price gain. Their mean yield = 2.74% and they had an average price/earnings ratio = 14.78. Their mean LTM dividend growth = 4.39% and they had an average CAGR projection of 5.94.

The following stocks were in the Diagnostic sub-sector: A , BRKR , DGX , TMO . Their YTD mean price gain = -0.85% and 2 of the 4 beat the sector mean yearly price gain. Their mean yield = 0.92% and they had an average price/earnings ratio = 19.87. Their mean LTM dividend growth = 9.33% and they had an average CAGR projection of 8.75.

The following stocks were in the Healh Care Plans sub-sector: AET , ANTM , HCA , HUM , UNH . Their YTD mean price gain = 11.11% and 4 of the 5 beat the sector mean yearly price gain. Their mean yield = 1.17% and they had an average price/earnings ratio = 16.91. Their mean LTM dividend growth = 12.08% and they had an average CAGR projection of 13.80. 

The Moral I find in this story

(1) Trying to beat the Healthcare ETF (XLV) (and I try to beat the index performance in all sectors) while only investing primarily in pharma is mission impossible.

(2) Over weighting medical devices is a potential strategy for beating the XLV that I have shown can work some of the time.

(3) Trying to beat the XLV without having moderate exposure to 'health care service providers' is a very difficult mission. I am going to stop trying - and buy some stocks in that sub-sector.

Next time I post on health care stocks - you will probably see that I have added shares in Anthem (ANTM) and UnitedHealth (UNH) due to the evidence provided above - along with shares in Hill-Rom Holdings (HRC) and Zoetis (ZTS) -- which both have low payout ratios (which tends to lead to superior EPS and dividend growth) along with high dividend growth inertia and EPS growth inertia.

One final spreadsheet on historical earnings (with 2012 data lacking for two that failed to report adjusted earnings) and P/E ratios.

Earnings Growth & P/E Ratios - Yahoo projections for 2018 & 2019 06-29-18 Fiscal and calendar years are not in sync. ABC, BDX, CAH, MCK, MDT and PRGO began fiscal 2018 at least one quarter earlier than calendar 2018.

Earnings / Share Earn. Growth P/E Ratios
Co. 2012 2013 2014 2015 2016 2017 2018 2019 16-17 17-18 18-19 2015 2016 2017 2018 2019
A 312 288 304 174 198 236 267 294 19.19% 13.14% 10.11% 35.54 31.23 26.20 23.16 21.03
ABBV 0 314 332 429 482 555 780 883 15.15% 40.54% 13.21% 21.60 19.22 16.69 11.88 10.49
ABC 276 314 397 496 562 588 646 725 4.63% 9.86% 12.23% 17.19 15.17 14.50 13.20 11.76
ABT 174 201 228 215 220 250 286 323 13.64% 14.40% 12.94% 28.37 27.72 24.40 21.33 18.88
AMGN 651 760 870 1038 1165 1267 1367 1412 8.76% 7.89% 3.29% 17.78 15.84 14.57 13.50 13.07
AZN 321 253 214 213 216 187 168 192 -13.43% -10.16% 14.29% 16.48 16.25 18.78 20.90 18.29
BAX 246 254 266 138 196 243 289 322 23.98% 18.93% 11.42% 53.51 37.67 30.39 25.55 22.93
BAYRY 172 186 200 191 202 269 300 249 33.17% 11.52% -17.00% 14.44 13.65 10.25 9.19 11.08
BDX 537 581 625 716 859 948 1099 1264 10.36% 15.93% 15.01% 33.46 27.89 25.27 21.80 18.95
BMY 199 182 185 201 283 299 342 365 5.65% 14.38% 6.73% 27.53 19.55 18.51 16.18 15.16
BRKR 83 77 75 89 119 121 139 153 1.68% 14.88% 10.07% 32.31 24.17 23.77 20.69 18.80
CAH 321 373 384 438 524 540 492 515 3.05% -8.89% 4.67% 11.15 9.32 9.04 9.92 9.48
DGX 392 400 410 477 515 565 661 699 9.71% 16.99% 5.75% 23.05 21.35 19.46 16.63 15.73
GILD 171 201 809 1261 1157 853 575 622 -26.27% -32.59% 8.17% 5.62 6.12 8.30 12.32 11.39
GSK 353 373 296 232 266 290 279 290 9.02% -3.79% 3.94% 17.38 15.15 13.90 14.45 13.90
HRC 242 238 225 264 338 386 462 511 14.20% 19.69% 10.61% 33.08 25.84 22.63 18.90 17.09
JNJ 510 552 597 620 673 728 813 866 8.17% 11.68% 6.52% 19.57 18.03 16.67 14.92 14.01
Earnings / Share Earn. Growth P/E Ratios
Co. 2012 2013 2014 2015 2016 2017 2018 2019 16-17 17-18 18-19 2015 2016 2017 2018 2019
LLY 339 415 278 343 352 422 516 547 19.89% 22.27% 6.01% 24.88 24.24 20.22 16.54 15.60
MCK 638 633 835 1111 1208 1254 1333 1452 3.81% 6.30% 8.93% 12.01 11.04 10.64 10.01 9.19
MDT 346 375 382 428 437 460 512 558 5.26% 11.30% 8.98% 20.00 19.59 18.61 16.72 15.34
MRK 382 349 349 359 378 395 422 454 4.50% 6.84% 7.58% 16.91 16.06 15.37 14.38 13.37
NVO 142 167 162 201 222 238 251 258 7.21% 5.46% 2.79% 22.95 20.77 19.38 18.37 17.88
NVS 389 501 523 483 471 476 522 556 1.06% 9.66% 6.51% 15.64 16.04 15.87 14.47 13.59
PFE 219 222 226 220 240 259 296 306 7.92% 14.29% 3.38% 16.49 15.12 14.01 12.26 11.86
PRGO 499 561 639 773 759 488 526 567 -35.70% 7.79% 7.79% 9.43 9.61 14.94 13.86 12.86
RHHBY 162 156 156 175 184 191 203 203 3.80% 6.28% 0.00% 15.79 15.02 14.47 13.61 13.61
SHPG 750 800 900 1168 1310 1515 1522 1635 15.65% 0.46% 7.42% 14.45 12.89 11.14 11.09 10.32
SNN 119 154 166 170 165 189 193 209 14.55% 2.12% 8.29% 22.08 22.75 19.86 19.45 17.96
SNY 319 340 345 282 314 328 321 344 4.46% -2.13% 7.17% 14.19 12.74 12.20 12.46 11.63
STE 234 248 299 339 376 415 471 523 10.37% 13.49% 11.04% 30.98 27.93 25.30 22.30 20.08
SYK 407 423 473 512 580 647 723 793 11.55% 11.75% 9.68% 32.98 29.11 26.10 23.36 21.29
TEVA 535 501 507 542 514 372 257 262 -27.63% -30.91% 1.95% 4.49 4.73 6.54 9.46 9.28
TMO 494 542 696 739 827 936 1090 1214 13.18% 16.45% 11.38% 28.03 25.05 22.13 19.00 17.06
ZBH 530 575 606 690 796 803 767 802 0.88% -4.48% 4.56% 16.15 14.00 13.88 14.53 13.90
ZTS 108 142 153 173 196 237 306 343 20.92% 29.11% 12.09% 49.24 43.46 35.95 27.84 24.84
AET 585 624 670 771 823 986 1098 1209 19.81% 11.36% 10.11% 23.80 22.30 18.61 16.71 15.18
ANTM 756 885 932 1016 1100 1204 1540 1693 9.45% 27.91% 9.94% 23.43 21.64 19.77 15.46 14.06
HCA 300 341 470 556 687 600 883 947 -12.66% 47.17% 7.25% 18.45 14.93 17.10 11.62 10.83
HUM 747 872 751 814 1092 1171 1397 1686 7.23% 19.30% 20.69% 36.56 27.25 25.42 21.30 17.65
UNH 500 583 604 645 805 1007 1262 1426 25.09% 25.32% 13.00% 38.04 30.48 24.36 19.44 17.20
Sector Average 6.78% 10.29% 7.96% 22.88 20.02 18.38 16.47 15.17

Disclosure: I am/we are long ABC, ABT, AMGN, BDX, MDT, NVO, SYK.