3 Hot Healthcare Stocks With Great Momentum

Over the recent past, the U.S. presidential election has been dominating the headlines. The startling victory of the Republicans, through the most controversial electoral procedure in history, has created much of an uproar in the market.

The COBE Volatility Index (VIX) scaled as high as $22.51 on Nov 4 and while the graph is gradually trending down, the ‘fear’ index remains alarming, per a recent CNBC article. According to the report, “volatility in bond and commodity markets has almost doubled after the shock US election result that wrong-footed investors and traders around the world.”

In spite of what the future may unfold, Healthcare is expected to benefit under the new administration. Healthcare sector stocks have also rallied significantly since the election results. This has always been one of the hottest sectors over the last five years, courtesy of increasing consumer demand for planned healthcare. Under Obamacare, the companies positioned themselves to be the benefactors of the new age of health care. While the nation is currently divided into ‘we need’ and ‘don’t need’ for the existing healthcare policy, there are high possibilities of a full retraction and replacement of Obamacare.

Historically, it has been seen that when markets are in an unstable state, all conventional marketing strategies based on fundamentals fail because of the disruptive nature of the economy. Under such circumstances, momentum investing has proven to be the most rewarding over the short term. Momentum is basically the tendency of winning stocks (i.e. stocks that have outperformed the market in recent times) to keep winning and losing stocks to keep losing. It is based on the idea that once a stock establishes a trend, it is more likely to continue in that direction.

Here we pick three top healthcare stocks that can prove to be great momentum picks with favorable price movement over the recent past, particularly reaching a 52-week high. Also, the companies flaunt a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

Masimo Corporation (MASI - Free Report) : This Irvine, CA-based developer of non-invasive patient monitoring technologies is best known for its pulse oximetry device. Notably, the company sells more pulse oximeters to hospitals than any other company.

MASIMO CORP Price

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MASIMO CORP Price | MASIMO CORP Quote

Masimo has a combination of a Zacks Rank #3 and Momentum Style Score ofA. We note that, Style Scores of ‘A’ or ‘B’ when combined with Zacks Rank #1, 2 or 3 offer the best investment opportunities. Masimo’s share price reached a 52-week high of $62.69 on Nov 23, eventually closing a tad lower at $62.09. The company gained 49.5% year to date, much better than the S&P 500’s 7.8% over the same time frame. It has added roughly 47.0% over the past one year.

CryoLife, Inc. (CRY - Free Report) : This Kennesaw, GA-based company is a distributor of cryogenically preserved human tissues for cardiac and vascular transplant applications and manufactures medical devices. Among its products are human heart valves, which are treated to remove excess cellular material and antigens and BioGlue surgical adhesive.

CRYOLIFE INC Price

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CRYOLIFE INC Price | CRYOLIFE INC Quote

Share price of CryoLife reached a 52-week high of $20.05 on Nov 23, finally closing a bit lower at $19.90. The company gained 84.6% year to date, way better than the S&P 500’s 7.8% over the same time frame. It has added roughly 80.9% over the past one year. The stock sports a Zacks Rank #1.

Vascular Solutions, Inc. (VASC - Free Report) : ThisMinneapolis, MN-based medical device company offers advanced clinical solutions for diagnostic and interventional vascular procedures. Its full line of products gives vascular specialists the tools they need to handle regular and complex cases, resulting in improved outcome for patients.

VASCULAR SOLUTN Price

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VASCULAR SOLUTN Price | VASCULAR SOLUTN Quote

Vascular Solutions has a Zacks Rank #2. The stock’s share price reached a 52-week high of $54.50 on Nov 23, eventually closing at $54.35. The company gained 58.0% year to date, much better than the S&P 500’s 7.8% o

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