Stephanie Link, Co-Portfolio Manager of Action Alerts PLUS, picks baskets of stocks that diversified within the sector itself and says that will be applied to her 2015 Healthcare picks. AbbVie has had quite a run in 2014, but it still trades at a discount relative to a peer. Link believes it deserves a higher multiple because starting in 2015, the product pipeline will become more diversified and management is very shareholder-friendly. Cigna also trades at a discount and Link likes the business mix. She also points out if the job market continues to improve, the HMOs will as well. Finally, Express Scripts rounds out Link’s healthcare picks because the company has strong pricing power.
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