Scott Bleier of Create Capital.com loves contrarian plays. Last time he was on Breakout was early July. At that time Bleier suggested adding three European stocks, getting long, and diving straight into the teeth of one of the periodic moments when Europe seemed near the abyss. If you listened to him and invested in Astrazenica (AZN), ABB Ltd (ABB) and Total SA (TOT), you made money on all three. If you ignored Bleier, you get another shot; he's back and this time he's going into healthcare (XLV).
With healthcare central to the presidential race, most investors are taking a wait and see approach to the space. Though he thinks an Obama victory is a lock "unless the stock market crashes about a week before the election" Bleier really doesn't care.
"Do you think governments around the world are going to stop spending on health care?" he questions.
The answer is no and that's pretty much the thesis. Below are his top picks.
Quest Diagnostics (DGX)
"I like a little growth with my stability," says Bleier. Quest has been locked in a range for a decade but Bleier is undeterred. Testing is a growth segment, albeit slow growth. Bleier is looking for a breakout on the name and thinks it's a takeover candidate.
Thermo Fisher Scientific (TMO)
Another diagnostic and analytics concern, Bleier says Thermo is "growing like a week every single quarter, top and bottom line." Its under-loved and unappreciated but the Create Capital kingpin thinks it's about to be discovered for the gem it really is.
Let's just let Bleier take this one: "This is the model for what all big pharmaceutical stocks are going to need to do: they're going to need to buy a pipeline and integrate it. That's what Sanofi is doing and it has a 3.5% yield," he says.
Once a darling on Wall Street Pfizer has become, in Bleier's words, "the most disliked former glory stock and soon to be again a glory stock."
How? Just like Sanofi, by buying a pipeline. "The Big Daddy of American pharmaceuticals stocks, with a $180 billion market cap" has the firepower to build up its pipeline. When it does Bleier says Pfizer will regain its mojo on the Street.