Over the duration of the third quarter the Vanguard Health Care Fund added two new stocks to its holdings. The fund now holds on to 89 stocks valued at $39.18 billion. The following companies are Vanguard's top portfolio holdings.
The guru’s largest holding of the third quarter is a new company in the top five. Over the past quarter the portfolio managers purchased a total of 5,195,929 shares of Actavis stock, representing a 154.66% increase in holdings.
The guru bought these shares in the quarterly price range of $202.72 to $248.00, with an estimated average quarterly price of $223.78 per share. Since then the price per share is trading up about 9.9%.
Vanguard’s holding history in comparison to quarterly price growth:
Actavis is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand and biosimilar products.
Actavis’ historical revenue and net income:
The GuruFocus analysis on Actavis reports that the company’s asset growth is faster than its revenue growth, the Piotroski F-Score is high and its price is sitting near a 10-year high.
The Peter Lynch Chart suggests that the company is overvalued:
Actavis has a market cap of $65.18 billion. Its shares are currently trading at around $245.91 with a P/B ratio of 2.24 and a P/S ratio of 4.08. Actavis PLC had an annual average earnings growth of 1.90% over the past five years.
Vanguard Health Care Fund’s second largest position goes to Merck & Co where the fund holds on to 33,420,748 shares. This position represents 5.1% of the fund’s portfolio and 1.16% of the company’s shares outstanding.
Over the past quarter Vanguard cut their holdings -1.38% by selling 469,200 shares of the company’s stock. They sold these shares somewhere near the average quarterly price of $58.88 per share. Since then the price per share is up about 0.8%.
Vanguard Health Care’s historical holding history:
Merck & Co is a global health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health and consumer care products, which it markets directly and through its joint ventures.
Merck & Co’s historical revenue and net income:
The analysis on Merck & Co reports that the company’s operating margin is expanding, its revenue per share has slowed down over the past year and its price is sitting near a 10-year high. The analysis also notes that the company has issued $5.2 billion of debt over the past three years and that its dividend yield is near a 5-year low.
The Peter Lynch Chart suggests that Merck & Co is currently overvalued:
Merck & Co has a market cap of $171.17 billion. Its shares are currently trading at around $59.34 with a P/E ratio of 31.30, a P/S ratio of 4.03 and a P/B ratio of 3.56. Merck currently holds a dividend yield of 2.97%. The company had an annual average earnings growth of 2.20% over the past ten years.
Bristol-Myers Squibb Company (BMY)
The guru fund’s third largest holding goes to Bristol-Myers Squibb where they hold on to 38,480,761 shares. This position makes up for 5% of the fund’s total portfolio and 2.32% of the company’s shares outstanding.
Over the past quarter Vanguard upped their holdings in Bristol-Myers Squibb 6.31% by purchasing 2,282,800 shares. The fund purchased these shares near the average quarterly price of $49.94 per share, and since then the price per share has increased approximately 16.8%.
Vanguard Health Care Fund (Trades, Portfolio)’s historical holding history:
Bristol-Myers Squibb is a biopharmaceutical company engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of biopharmaceutical products. The Company operates in one segment: Biopharmaceuticals.
Bristol-Myers Squibb’s historical revenue and net income:
The analysis on Bristol-Myers Squibb reports that the company’s revenue per share has been in decline over the past three years, the company has issued $282 million of debt over the past three years, and the company’s price is now sitting near a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
Bristol-Myers Squibb has a market cap of $96.74 billion. Its shares are currently trading at around $58.32 with a P/E ratio of 35.90, a P/S ratio of 6.06 and a P/B ratio of 5.80. The company had an annual average earnings growth of 0.40% over the past ten years.
UnitedHealth Group (UNH)
Vanguard’s fourth largest position is in UnitedHealth Group where they hold on to 20,519,100 shares of the company’s stock. Their position represents 4.5% of fund’s total portfolio and 2.11% of the company’s shares outstanding.
During the past quarter Vanguard increased their position 2% by purchasing 403,200 shares. They added these shares near the third quarter average quarterly price of $84.48 per share. Since then the price per share has increased about 10.8%.
Vanguard’s historical holding history:
UnitedHealth is a health and well-being company that helps people live healthier lives and help make health care work better. The company is helping individual's access quality care at an affordable cost; simplifying health care administration and delivery; strengthening the physician/patient relationship; and empowering physicians, health care professionals, consumers, and employers in the health system with actionable data to make better, more informed decisions.
UnitedHealth’s historical revenue and net income:
The analysis on UnitedHealth reports that the company’s price is nearing a 10-year high, its dividend yield is at a 10-year high and it has shown predictable revenue and earnings growth.
The Peter Lynch Chart suggests that the company is currently overvalued:
UnitedHealth has a market cap of $90.95 billion. Its shares are currently trading at around $93.61 with a P/E ratio of 17.20, a P/S ratio of 0.75 and a P/B ratio of 2.20. The company had an annual average earnings growth of 12.50% over the past ten years.
GuruFocus rated UnitedHealth the business predictability rank of 4.5-star.
AstraZeneca (LSE:AZN, Financial)
The fund’s fifth largest holding is in the UK-based company AstraZeneca. The fund holds on to a total of 20,768,156 shares of the company’s stock. This holding makes up for 3.8% of the fund’s total portfolio holdings as well as 1.64% of the company’s total shares outstanding.
The guru-ranked fund did not alter their holdings in AstraZeneca over the past quarter. The last move they made was in the second quarter of 2014, and since that increase the price per share is up about 7%.
Vanguard Medical’s historical holding history:
AstraZeneca is a biopharmaceutical company that focuses on three primary areas of healthcare: cardiovascular and metabolic disease, oncology, and respiratory inflammation and autoimmunity. The company is also engaged in the infection, neuroscience and gastrointestinal disease areas.
AstraZeneca’s historical revenue and net income:
The analysis on AstraZeneca reports that the company’s revenue per share has been in decline over the past five years, its dividend yield is near a 5-year low and its price is sitting near a 10-year high.
The Peter Lynch Chart suggests that the company is currently overvalued:
AstraZeneca has a market cap of $58.06 billion. Its shares are currently trading at around $45.97 with a P/E ratio of 96.00, a P/S ratio of 3.66 and a P/B ratio of 4.57. The dividend yield of AstraZeneca stocks is 3.70%. The company had an annual average earnings growth of 10.50% over the past ten years.
Check out Vanguard Health Care Fund’s complete third quarter portfolio here. Also click here to try a free 7-day premium membership trial.
