Josh Brown’s ‘best stocks in the market’: Health Care

Health care just did something we said it hadn't done since 98. Yeah, 100% of the SLV sector stocks advanced on Friday. Yeah. It's happened 34 other days going back to the inception of it since 98. >> You ever hear that term? Probably from a breadth thrust. Like that's what that is basically. But on a sector basis, it just tells you the level of institutional institutional accumulation coming in. 21% of all the components in the SLV made a 52 week high on Friday. They are buying these names. And there's a reason you get you get this really interesting grouping of subindustries. And I'm going to talk about one of them right now. The life sciences tools and services names are set up beautifully both this year and next year from an earnings growth perspective. Most of these are recurring revenue businesses, which is Wall Street wants. And they're benefiting from an AI Tailwind, but they're not wholly reliant on things like, I don't know, data centers for example. So for growth investors that rode these traditional AI names up this year. Now they want to switch. They want to buy cheaper stocks that also have that kind of recurring revenue profile. These are the names Mettler Toledo, MTD stockbroker to a fresh 52 week high. We're showing you 50 and 200 day here to make the point that these are down uptrends that have been going on for most of the year. And when you saw that golden cross happen earlier in the summer, that told you something interesting was brewing and then you got that follow through here. So we like that name. Citigroup's target is 1700. That would be 20% higher. Thermo Fisher is the biggest name in the group $220 Billion Market cap. This one is not quite there yet as you can see. Not quite over the February high from earlier this year. But you have a golden cross and you have all the ingredients for a potential breakout. I feel pretty confident that will happen. Everybody's watching those March April highs. When it gets through, there's no sellers. It's an entirely different story. The last one is Agilent. Agilent spun out of Hewlett Packard 26 years ago. Ticker symbol A looks exactly like Mettler Toledo. It's a $42 billion market cap, right in the sweet spot of that next tier of large cap stock riding the 50 day. But if you look at it, every challenge on the 50 day, the buyers came in exactly where they were supposed to. Almost like it was a script. Meanwhile, you've got a vacuum. If it breaks this level. 140 you have to go back to 2021. It was at 180. You really have 40 points with no natural resistance. So I'm watching this one for a breakout as well. Mettler Toledo is all the way through. The Agilent is next, followed by Thermo Fisher. They're buying these names because they like the business. They like the outlook. They're not terribly expensive. And it's time for some new blood in people's portfolios. What do you think? >> Well that's Weiss. He just gave you a couple of great trades. >> He did, and I've been on the sidelines. Look, I think it's still go. I mean, an accommodative interest rate environment. Health care is going to work, particularly biotech. And as I mentioned last week, until you see supply in IPOs or secondaries, there's nothing really to eat into that. >> Look at that move from end of summer, beginning of fall to now. Unbelievable Joe. You've got a lot of exposure, strongest. >> Momentum five 3040 day time frame. I absolutely have a lot of exposure here today. 52 week highs. Eli Lilly Biogen, Medtronic, McKesson. So money's coming in Idexx labs which we own. >> And it's a great story. >> Why don't you own Lilly. Why doesn't anybody own Lilly here? We did own Lilly. I know we were. We were shaking. >> Out. >> Of Lilly. >> Just too expensive. I mean, you just don't pay that for a drug company. If you doubled the historical valuation, you're still way, way above where it should be. So I just can't do that. And there's more competition coming on to get into the market for their primary drug. I just can't see. >> I think it's I think Lilly is more important symbolically. This is the first health care company to reach $1 trillion market cap. The fact that that's possible, I think, is leading to the momentum in the rest of the sector. People are waking up and saying, wait a minute, there are growth companies in this group that are not priced like like, you know, microchip companies, they're not priced like semis. And