This is a top health care company that could surprise to the upside. Team Health Holdings Inc. (NYSE: TMH) is a leading provider of outsourced physician staffing solutions for hospitals in the United States. Through its 21 regional locations and multiple service lines, Team Health’s more than 14,000 affiliated health care professionals provide emergency medicine, hospital medicine, anesthesia, urgent care and pediatric staffing and management services to approximately 1,000 civilian and military hospitals, clinics and physician groups in 47 states.
The Jefferies team feels that the company’s acquisition of IPC Healthcare is viewed by Wall Street as too expensive. They feel differently and think that the synergies of the combination will really start to show up over the next two years, and it also gives the company a greater exposure to Medicare bundling.
Jefferies has a $65 price target. The consensus target is $61.53, and shares closed Tuesday at $41.84.
With all the sabre rattling over gun control, this is one of the many stocks benefiting from the concern. Vista Outdoor Inc. (NASDAQ: VSTO) designs, manufactures and markets consumer products for the outdoor sports and recreation markets in the United States and internationally. It operates through two segments. The Shooting Sports segment designs, develops, produces and sources ammunition for the hunting and sport shooting enthusiast markets, as well as for local law enforcement.
The Outdoor Products segment offers binoculars, trail cameras, target systems, mounts, game calls, decoys, blinds, safety and protective eyewear products, fashion and sports eyewear products, laser rangefinders, archery accessories, riflescopes, hunting laser rangefinders, gun care products, reloading equipment, gun powder and targets.
The Jefferies team note the increased demand for firearms and ammunition given recent events and feel that this stock could have additional upside. They think trading at eight times EBITDA, the solid earnings growth could push that multiple to a still reasonable 10 times EBITDA.
The Jefferies price target is posted at $55. The consensus target is $51.69. Shares closed Tuesday at $44.69.
None of the stocks scream momentum and overbought. They all offer solid earnings growth and lower volatility for accounts looking to minimize big portfolio fluctuations. They all make sense for long-term equity holders.