Sanchez: this healthcare stock at all-time high is still worth owning

“Healthcare” has done well this year in an otherwise down market and it still has opportunities that are worth buying, says Gina Sanchez – Chief Market Strategist at Lido Advisors.

Sanchez is bullish on Humana Inc

A name that pops out to her even though it’s already trading at an all-time high is Humana Inc (NYSE: HUM).

A day earlier, the health insurance company announced a quarterly cash dividend of 78.75 cents. But Sanchez also has other reasons to be bullish on this one, including that the pandemic-related costs have now come down.

Pandemic related costs were really a drag on their profitability. And then the fact that they were able to sell their hospice unit and their personal care unit is also going to benefit their outlook.

Another healthcare stock she recommends owning is AbbVie Inc.

Humana to report results next week

Human is scheduled to report its Q3 results on November 2^nd. Consensus is for it to earn $6.25 a share this quarter, significantly better than $4.83 a year ago. On CNBC’s “The Exchange”, Sanchez added:

Managed care is a space that, as we continue to see an aging population, healthcare matters. So, we’ve owned it for a while and we’re pretty pleased with its performance.

She’s convinced that Humana Inc will stand tall in the face of a recession that remains a real possibility even though the U.S. economy grew at an annualised pace of 2.6% in the third quarter of 2022. (read more)

Sanchez’ constructive outlook on this stock is in line with Wall Street that also currently rates it at “buy”.