Four bargain healthcare stocks

There are a lot of positives on the horizon for the healthcare sector. But you wouldn't think it - US large-cap pharmaceuticals are trading on almost historic lows right now. Here, professional investor Samuel Isaly tips four medical stocks set to profit from the biotech boom.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week: Sam Isaly, Orbimed Capital, Manager of the Worldwide Healthcare Trust.

There are many positives on the horizon for the healthcare sector, not least the bargains available for savvy investors. Whilst other sectors of the equity markets are reaching new highs, valuations of US large-cap pharmaceuticals are trading close to historic lows about ten times estimated 2011 earnings compared to 13 times for the broader US stockmarket. The pipeline of new drugs coming onto the market is encouraging, as the industry recovers from a fallow period spanning much of the past decade.

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