These two health-care names work in a 'difficult' market, says MAI Capital Management strategist
In this volatile environment, there could be big opportunities in two health-care names, according to Chris Grisanti, MAI Capital Management's chief market strategist. Stocks have been rocky amid fears about President Donald Trump' s high-tariff policy and the economy. On Thursday, equities moved up again after investors reacted to strong earnings from two tech titans, Meta Platforms and Microsoft , out after the bell Wednesday. Grisanti said his health-care plays will work best "when the market gets more difficult again." He gave his two buys, and one name he's avoiding, during the " Three Stock Lunch " segment on CNBC's " Power Lunch " Tuesday. AbbVie The global biopharmaceutical company has done a great job of replacing its blockbuster anti-inflammatory drug Humira, which has faced declining sales since it lost patent protection in 2023, Grisanti said. AbbVie now has two new drugs, Skyrizi and Rinvoq. The company posted first-quarter earnings and revenue last week that topped Street expectations. It also raised its full-year earnings-per-share guidance. AbbVie also announced in February it will invest at least $10 billion in manufacturing in the United States, including four new plants. "They've got a great management [team] there," Grisanti said. "They're mixing up the product line and so that should be real strong." ABBV YTD mountain AbbVie While shares have moved higher in recent days, they still have "a ways to go," he said. The stock lost nearly 7% in April. It is up more than 9% year to date and has a dividend yield of 3.36% UnitedHealth UnitedHealth Group is currently "in the penalty box, for good reason," Grisanti said. Shares have been pummeled since mid-April, when the health-care provider cut its annual profit forecast due to higher-than-expected medical costs. The stock hit a 52-week low on Thursday and is down more than 20% year to date. It has a 2.04% dividend yield. "This is a very rare chance to get this stock, which has great management, terrific 20-year growth profile, at a cheap valuation," Grisanti said. Booking Holdings The last name on Grisanti's list is one that he would not recommend right now: Booking Holdings . The online travel booking provider beat on both the top and bottom lines when it reported first-quarter results on Tuesday. Its gross bookings narrowly topped expectations. However, tariffs are going to start hitting corporate earnings this summer, Grisanti said. "Travel is about the most discretionary category we have," he said. "It's a great company, but I don't want to be owning it if we're sliding towards a recession." Shares are up 3% so far this year.
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