Top Healthcare Companies scored from recent earnings including Humana :: InvestMacro

By InvestMacro Research

Earnings season continues on and our latest update highlights some of the top companies that have been recently added to our Cosmic Rays Watchlist.

Today, we have a selection of healthcare companies. The healthcare sector has been one of the weak links so far this year among the sector stock indexes and is considered a defensive stock category (in favor when growth and stocks are not under pressure).

The Cosmic Rays Watchlist is the output from our proprietary fundamental analysis algorithm. The algo examines company fundamental metrics, earnings trends and overall sector strength trends. The aim is identify quality dividend-paying companies on the NYSE and Nasdaq stock exchanges. If a company scores over 50, it gets added to our Watchlist for further analysis.

We use this system as a stock market ideas generator and to update our Watchlist every quarter. However, be aware the fundamental system does not take the stock price as a direct element in our rating so one must compare each idea with their current stock prices (this is not a timing tool).

Many studies are consistently showing overvalued markets and that has to be taken into consideration with any stock market idea. As with all investment ideas, past performance does not guarantee future results. A stock added to our list is not a recommendation to buy or sell the security.

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Here we go with 5 of our of Top Healthcare Stocks scored in Q1 2025:

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CONMED Corporation (CNMD):

CONMED Corporation (Symbol: CNMD) was recently added to our Cosmic Rays WatchList. CNMD scored a 68 in our fundamental rating system on May 1st.

At time of writing, only 4.44% of stocks have scored a 60 or better out of a total of 13,007 scores in our earnings database. This stock has made our Watchlist a total of 3 times and rose by 8 system points from our last update.

CNMD is a Small Cap stock and part of the Healthcare sector. The industry focus for CNMD is Medical – Devices.

ConMed sports a PE ratio of approximately 15.64. The dividend yield at this moment is 1.39% with a dividend payout ratio around 20%. ConMed has beaten analyst earnings expectations 4 quarters in a row.

On a price return basis, ConMed has fared worse than its healthcare benchmark with a 52-week price return of over -23% compared to the healthcare benchmark which has fallen almost -9% in the past 52 weeks.

Company Description (courtesy of SEC.gov):

CONMED Corporation, a medical technology company, develops, manufactures, and sells surgical devices and related equipment for surgical procedures worldwide. Company Website: https://www.conmed.com

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Asset vs Sector Benchmark:	*P/E Ratio (TTM)	*52-Week Price Return
– Stock: CONMED Corporation (CNMD)	15.64	-23.03
– Benchmark Symbol: XLV	24.92	-8.97

 

* Data through May 29, 2025

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Novartis AG (NVS):

Novartis AG (Symbol: NVS) was recently added to our Cosmic Rays WatchList. NVS scored a 77 in our fundamental rating system on April 30th.

At time of writing, only 1.81% of stocks have scored a 70 or better out of a total of 13,007 scores in our earnings database. This stock has made our Watchlist a total of 9 times and rose by 20 system points from our last update.

NVS is a Mega Cap stock and part of the Healthcare sector. The industry focus for NVS is Drug Manufacturers – General.

Novatis (NVS) is a company with a PE ratio of 17.43. The current dividend yield is approximately 3.50%. This company is a mega cap and has seen its EPS beat analysts’ expectations for 4 quarters in a row. The payout ratio currently is approximately 65%.

The NVS price return has beaten the healthcare benchmark over the last 52 weeks with a return of over 11% compared to a -9% benchmark return.

Company Description (courtesy of SEC.gov):

Novartis AG researches, develops, manufactures, and markets healthcare products worldwide. The company operates through two segments, Innovative Medicines and Sandoz. The Innovative Medicines segment offers prescription medicines for patients and healthcare providers. Company Website: https://www.novartis.com

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Asset vs Sector Benchmark:	*P/E Ratio (TTM)	*52-Week Price Return
– Stock: Novartis AG (NVS)	17.43	11.14
– Benchmark Symbol: XLV	24.92	-8.97

 

* Data through May 29, 2025

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Novo Nordisk A/S (NVO):

Novo Nordisk A/S (Symbol: NVO) was recently added to our Cosmic Rays WatchList. NVO scored a 65 in our fundamental rating system on May 8th.

At time of writing, only 4.44% of stocks have scored a 60 or better out of a total of 13,007 scores in our earnings database. This stock has made our Watchlist a total of 4 times and rose by 62 system points from our last update.

NVO is a Mega Cap stock and part of the Healthcare sector. The industry focus for NVO is Drug Manufacturers – General.

Novo Nordisk (NVO), a healthcare company out of Denmark that engages in the manufacturing distribution of pharmaceutical products. The PE ratio for NVO is approximately 20.50. The dividend yield comes in at approximately 2.43% with a payout ratio on its dividend near 51%. NVO has beaten analysts’ earnings expectations 3 out of the last 4 quarters and for the last 3 quarters in a row.

NVO has significantly underperformed the benchmark over the last 52 weeks with an almost -50% return over that time compared to the -9% for the healthcare benchmark. NVO had previously surged higher with a return of over +200% from September 2022 to June 2024 before retreating lower.

Company Description (courtesy of SEC.gov):

Novo Nordisk A/S, together with its subsidiaries, engages in the research and development, manufacture, and distribution of pharmaceutical products in Europe, the Middle East, Africa, Mainland China, Hong Kong, Taiwan, North America, and internationally. It operates in two segments, Diabetes and Obesity Care, and Rare Disease. Company Website: https://www.novonordisk.com

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Asset vs Sector Benchmark:	*P/E Ratio (TTM)	*52-Week Price Return
– Stock: Novo Nordisk A/S (NVO)	20.58	-49.47
– Benchmark Symbol: XLV	24.92	-8.97

 

* Data through May 29, 2025

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CVS Health Corporation (CVS):

CVS Health Corporation (Symbol: CVS) was recently added to our Cosmic Rays WatchList. CVS scored a 55 in our fundamental rating system on May 2nd.

At time of writing, only 7.77% of stocks have scored a 50 or better out of a total of 13,007 scores in our earnings database. This stock has made our Watchlist a total of 4 times and rose by 9 system points from our last update.

CVS is a Large Cap stock and part of the Healthcare sector. The industry focus for CVS is Medical – Healthcare Plans.

CVS has a PE ratio of just below 15.00 at the moment. The dividend yield for CVS is 4.30% with a payout ratio of around 63%. CVS has beaten analysts’ expectations 3 out of the last 4 quarters.

CVS has beaten the healthcare benchmark with a 12% return over the last 52 weeks compared to the -9% healthcare benchmark price return.

Company Description (courtesy of SEC.gov):

CVS Health Corporation provides health services in the United States. The company’s Health Care Benefits segment offers traditional, voluntary, and consumer-directed health insurance products and related services. Company Website: https://www.cvshealth.com

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Asset vs Sector Benchmark:	*P/E Ratio (TTM)	*52-Week Price Return
– Stock: CVS Health Corporation (CVS)	14.92	12.26
– Benchmark Symbol: XLV	24.92	-8.97

 

* Data through May 29, 2025

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Humana Inc. (HUM):

Humana Inc. (Symbol: HUM) was recently added to our Cosmic Rays WatchList. HUM scored a 57 in our fundamental rating system on May 1st.

At time of writing, only 7.77% of stocks have scored a 50 or better out of a total of 13,007 scores in our earnings database. This stock is on our Watchlist for the first time and rose by 62 system points from our last update.

HUM is a Medium Cap stock and part of the Healthcare sector. The industry focus for HUM is Medical – Healthcare Plans.

Humana (HUM) has a PE ratio of 16.11. The estimated yield is 1.45% with a dividend payout ratio of right around 25%. Humana has beaten analysts’ expectations for 4 quarters in a row on its earnings per share. Argus Research and Refinitiv/Verus recently upgraded Humana to BUY.

Humana has fared worse than the healthcare benchmark over the last 52 weeks with a return of roughly -35% compared to the price return for the healthcare benchmark of approximately -9%.

Company Description (courtesy of SEC.gov):

Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. It operates through three segments: Retail, Group and Specialty, and Healthcare Services. The company offers medical and supplemental benefit plans to individuals. Company Website: https://www.humana.com

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Asset vs Sector Benchmark:	*P/E Ratio (TTM)	*52-Week Price Return
– Stock: Humana Inc. (HUM)	16.11	-35.14
– Benchmark Symbol: XLV	24.92	-8.97

 

* Data through May 29, 2025

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By InvestMacro – Be sure to join our stock market newsletter to get our updates and to see more top companies we add to our stock watch list.

All information, stock ideas and opinions on this website are for general informational purposes only and do not constitute investment advice. Stock scores are a data driven process through company fundamentals and are not a recommendation to buy or sell a security. Company descriptions provided by sec.gov.