New Executive Order in One of the Market's Top Performing Sectors (Here's the Real Plan)

A new executive order. Could it be changing one of the hottest sectors in [music] the market? Joining us today is Mark Chaen with Chaken Analytics. Mark, so glad to have you on the show today and I'm excited about this topic because we've had quite a few headlines over the last week and the last few days talking about this new executive order on vaccines. Let's talk a little bit about how or if that might be impacting the healthc care sector. Well, the uh vaccine situation is more of a political football than a hard driver for healthcare. But but you did zero in on something really important, namely that healthc care sector has been leading the market right now both at the sector level and then at the industry group level. So the vaccine situation is uh playing to the u playing to the political blocks. And all it really did was to break up and pair back the uh required um suite of vaccines for uh babies and give parents a little more control over their children's u vaccine regimens. But the big story here because we've uh been focused in these broadcasts on data center buildout and chips. The big story is that at both the sector level and the industry group level almost everything in healthcare is bullish. So if we look at the XLV which is the spider healthcare sector and the S&P the large cap 24 stocks have bullish shaken power gauge ratings and only one has a bearish rating. And as our viewers know, that means that both the fundamentals and the technicals are strong. And then drilling down to uh the industry group level, the managed care providers and the ETF there is XHS 34 bullish, zero bearish. So quietly under the radar, this uh somewhat hybrid group, part defensive, part growth has really been outperforming. >> Okay. So really interesting to see that this executive order isn't really having a market impact yet. More political like you said, but it's also interesting to see how well this entire sector has performed over the last few months and weeks. The question is why? Why are we seeing so much you know bullish price action in so much of this sector right now? >> Uh the reason is that 2025 was an absolute disaster for managed care. the federal subsidies uh came off and uh costs just uh kept escalating and the insurance companies couldn't keep raising their rates fast enough. What's happened in 2026 is they've instituted cost controls to uh recognize that they had to do something. They've hiked rates and they in general have lost fewer um subscribers than people had anticipated and the subscribers they're losing are the less profitable subscribers. So, it's been a sort of perfect storm for [clears throat] the healthcare industry in 2026. >> Yeah, healthcare is such a broad sector, Mark. There's so many different areas. You've got pharmaceuticals, the biotechs, you've got long-term care, you have, you know, emergency insurance companies. So many different areas that that all encompass healthcare. So, is there any particular area of that healthcare sector that's doing better than others or are all of these areas in some ways doing well right now? >> Well, uh, Bridget, I like to do a top- down approach, which is why I start with the large cap XLV, which is the the broad healthc care sector within the S&P 500. And as we mentioned uh 24 stocks have a bullish rating only one has a bearish rating. Then I drill down into the industry groups and there you do get a little bit of separation. Um managed care is the strongest industry in the sector. Healthc care equipment is very strong. Medical devices not strong. So you've got three different industry groups in addition as you point out to the insurance companies. So we had three different industry groups within the health care sector. But the one that I zeroed in on in my weekly market insights was XHS which is the managed care managed healthcare uh industry within the healthcare sector. >> I am excited to dive into the three names that you have for us today that you are most bullish on in the healthcare sector and they do touch a few different areas of the healthcare market. So we're going to dive into those names in just a minute. But these three names that you have for us are really based on their power gauge rating. And for those who've watched the show before and have seen you, you know that the power gauge is your uh unique software, your unique way of looking at the market and rating these stocks based on how they show up in the power gauge and that's really looking for a lot of bullish indicators on it. If you would like to try out the Power Gauge for yourself to see what it has to say about many different stocks in the market, we have a special offer today to try Power Gauge for a year and also get your hands on some of these fantastic reports from Mark and his team over at Chicken Analytics. You can scan the QR code or click the link in the description to get that special offer right now. It won't last for long, so definitely something you want to take advantage of if you want to try out that offer and try out the Power Gauge for yourself. Okay, Mark, let's get into that first stock that you have for us today in healthcare. This is one that the power gauge is very bullish on. >> Well, uh, when I look at a sector and then an industry group, I usually looking for the best of the best. And, uh, I believe Centine symbol CNC is really the most um, efficient, the most uh, up on the rates, up on the costs of all the big health care providers. You have other ones like Humanana and United Health with but they're a lot larger. Uh Centine is focused on the Affordable Care Act and they're doing a good job of managing their cost. They've reduced debt. Uh they've raised rates. Uh 2025, as we mentioned, was just a nightmare for the healthcare industry in general because subsidies came off, costs kept rising, and they just couldn't keep up with it. But in 2026, Santine has really uh taken the reigns and and turned their business around basically. So even though subscriber growth is going to drop a little, they've lost unprofitable subscribers and retained profitable subscribers and uh they've reduced debt. This to me is the premier stock and they had a fabulous earnings report. Part of the reason that I like the stock was that it sold off after the earnings. And this is fairly typical of this earnings season, particularly in the tech sector, but it gave uh our subscribers a chance to buy into the stock on a about an 8% pullback from the spike uh that occurred after earnings were reported. So, positive earnings surprise. They've raised guidance twice this year. Now, you know how important guidance is. And so uh to me this is the cream of the crop and uh that was really our first recommendation of the three in the healthc care sector. >> Yeah, that earnings report absolutely stood out to me too on this one. Uh an earnings surprise like that definitely doesn't go unnoticed. Why do you think there was a pullback in price action after that really very strong report? >> Well, this is as I said typical of what's happened during earning season, especially in the tech sector and the buildout sector. You know, expectations were high and even when companies exceeded expectations, the mentality is sell the news. Centine initially spiked up on the news, but then the sellers came in and to me that that's been my game plan all through earning season because we're very bullish on the market here uh as we make new highs. Look for companies that beat earnings and revenue estimates and then buy the the uh the dips that happen when the traders come in and sell the news. that they're g this volatility is creating real opportunity for investors. >> Yeah, speaking of volatility, I I want to dive into the chart on this one a little bit because it's it's wildly impressive looking at where this stock was back in April of this year and how quickly the stock price literally doubled in just the span of a month. Why did we see that huge spike between April and May? >> Well, basically because of analysts raising their earnings estimates. A situation where people were leaning the wrong way. It's sort of like being in a sailboat. You know, if everybody's leaning to one side of the boat, there's only one way to go. And that was uh, you know, in response to a the first positive earnings surprise, which was the April surprise. But the stock kept going because people were behind the curve. The analysts just didn't get ahead of the story. And that happens sometimes. Usually the analysts are pretty good and uh you know they rarely see surprise like this but remember uh you also had a big spike in the market in April. So uh it's a combination of the market maybe there are a lot of shorts in the healthc care sector because it was less volatile than the tech sector. So long short funds that wanted to have some short positions may have thought that healthcare was the place to be. But the bottom line is the chart tells us everything. And and you're you're right to zero in on the chart. In technical analysis, sometimes the why doesn't matter. It's the what. And the what was that continuation even after the stock broke out dramatically. I feel like I ask you this almost every time you're on, but I think it's important to explain to investors that the the theory behind looking at bullish stocks like this because one thing we often hear from viewers when you look at a stock that's gone up 150% in one year, they're saying, "Why are we talking about this now? Why weren't we talking about this stock back in April?" But talk a little bit more about uh your theory of investing in stocks that are already very bullish and have this kind of momentum running. >> Well, uh point out that the power gauge turned bullish uh in late November into January on Centine when the stock was trading at 40. My theory of investing is to find stocks with good fundamentals and strong industry groups uh that have great technicals and great technicals often mean that the stock has already moved. But as long as the fundamentals keep improving, as long as analysts keep raising their estimates, it's what I call the best of the best theory. These are the best stocks in the strongest industry groups. And that gives you two fundamental tailwind for the individual sock and the group tailwind. And and group relative strength is one of the underused and underappreciated technical tools because most people look at the market and [clears throat] how a stock's doing to the market. Well, that is important, but how is a stock doing relative to its industry group? Yeah, that's a really good indicator and again good guidance and advice for our viewers who are investing and figuring out their own strategies for investing right now. All right, Mark, we're talking about the strongest one first. What is that next stock that's also very strong in the healthcare sector right now? >> Well, this is u symbol CO and the reason I picked this and like this is it's just starting to come out of a uh a downtrend. It's sort of lagging behind uh Sentine, but the fundamentals are very strong. Analysts are raising their estimates. The last earnings report, which came out just a week ago, um they beat estimates by about 7%. So, uh this is a a stock where the Power Gates has just recently turned bullish in mid July. And so uh I'm trying to strike a balance in our recommendations uh with stocks that have moved dramatically like Sentine and stocks that are just starting to move. So um I think uh Senoro which is a huge healthc care provider. It's hard to get your arms around these numbers sometimes. So this is a healthcare giant been a consolidation of a lot of different health care providers over the years. I think this one has potential to go back up to the highs which is um you know in the previous highs were in the 370 area and it's looking to me based on this latest earnings report that again the analysts are a little bit behind the curve and and starting to catch up with their recommendations. >> Yeah, speaking of what the analysts have to say, that's what I was looking at as far as one that has potential growth. The analysts definitely seem to agree with you even at the consensus level. This one has about 20% upside, but there are some recent price targets uh here in August that have this stock moving uh to almost $400 or even over $400. What do you think about those higherend price targets on this name? Is that just a good trend uh from what we're hearing from analysts? >> Well, it's a trend that I monitor very closely. Uh it's not just analysts raising their estimates. It's when they raise their price targets very often other analysts will follow them. You know, there's usually a lead analyst in every stock. And if the lead analyst is stepping away from the pack and raising their estimates like they just did in Sancort, then very often a lot of other analysts will follow suit. And that just creates this momentum effect. and and that's why strong stocks and strong industry groups are um the place to be when you're looking for new ideas because you very often have analysts raising not just their earnings estimates but their price targets and that's what we love to see. >> One other question just fundamentally with this business and I think this may apply to all of the stocks we're talking about today but wanting to talk about why we're continuing to see that future growth you know the forward guidance going higher for the stock. Is there something going on in the economy? Is there something going on with this individual business? What could be driving that growth specifically in this stock in that healthc care sector? It's different than AI where we're seeing, you know, massive demand growing because all the infrastructure is growing up right now. What's the catalyst in the healthcare sector? >> Well, rising prices for one. Uh, you know, health care prices have been rising for time immemorial. And you know it's funny that uh healthc care is so central to all of our lives. No pun intended but uh very often gets under appreciated because people are looking for the next hot stock or the next hot trend in AI buildout or air conditioning to cool AI data centers. Healthcare is sort of a hybrid. It's a defensive stock along with utilities and consumer staples, but it's also a growth area. And depending on your point of view as an investor, there there are still, believe it or not, conservative mutual funds and ETFs that are bricks and mortar breadandbut companies and healthcare certainly fits in that mold. Uh very rarely will you see one catalyst that will change the whole healthcare industry. I mean, it's nuts and bolts, bread and butter, uh, central to our lives, and it's not going away anytime soon. It's not going to be trumped by the next new, uh, chip introduction. It's it's just there. And so, uh, healthc care is, I think, underappreciated by most investors. They're either looking at pharmaceuticals like Merc and Johnson and Johnson and Bristol Meers or some of the sexier healthcare device companies. But managed care is sort of in the sweet spot for me because it's it's bread and butter. Not going to be and and by the way AI is is going to help transform the industry. A by cutting cost, B by improving client relations and client interactions and uh helping to anticipate um where the cost incrementals are going to come from. Healthcare is one industry that's using AI and that's only going to accelerate. Yeah, AI is absolutely going to change and impact every single sector of the market. Healthcare uh will will be no exception. There's going to be huge impacts. I agree uh with making things more efficient and and consumer interaction. There's just going to be changes that we may not even know about yet coming to healthcare because of AI. But I want to ask one more question before we move on to your last stock. It's just out of curiosity on this sector is looking at healthcare as a diversification. So so many investors are really focused on tech right now. I know you talk about tech. We talk about tech on the channel all the time, but is healthcare an important one to have in your portfolio? At least have some exposure to healthcare uh in case that big AI bubble uh does ever pop or come down at some point in time? So, just talking about healthcare and the role it plays in diversification. Well, that is an excellent point and uh even uh if you think you're diversified, if you dive into your portfolio and you own a company that clears land for utilities to build new power plants or uh cooling equipment like um fix comfort systems, you may think you're diversified from your chip investments and your uh the obvious data center and tech stocks, but you're not you're really, as you point out, and rightly so, you're you're making one bet. Uh so, for instance, we love a stock uh power PWR looks like machinery company, Quant Services, uh you know, but they clear land for electric utilities and help build them. So, if you own that, you still part of the AI buildup boom, whereas, as you point out, with healthcare, you're really diversifying and you in a growth area. So you get the benefit in many cases of a dividend uh and you also get the benefit of diversification away from the AI uh buildout boom. >> So much good education for investors here today and I know that is what analytics is all about and of course like I said earlier you do cover plenty of different AI stocks. You in fact you have several different special reports out right now and some different areas of the AI buildout that are very very bullish right now too. So, if you want to check out those special reports and find more stock ideas from Mark and his team at Shaken Analytics, as well as try out that full year of access to the power gauge, scan the QR code or click the link in the description to get your hands on that special offer right now. Again, it's a huge discount just for our market beat listeners today. So, if you want to try that out for yourself, don't miss the offer in the link. Okay, Mark, let's get on to that last stock that you have for us today. Uh, this one's in a little bit of a different area of healthcare. Fenius Medical is a company that treats kidney diseases both in the US and in Germany. And the reason that I zeroed in on this is that um kidney disease is a serious problem uh in America. And uh it it has been traced to diet and also to um alcohol addiction uh problem that some Americans have. So, uh, it's very similar chart pattern to Stenora in that the power gauge just turned bullish in June a little bit earlier and they had a great earnings report. And here again, the stock spiked up over 26 and then pulled back to uh 24. And that I like that opportunity as I said earlier that healthc care provides in the way of diversification and also the opportunity that the volatility uh in earning season this year has created. So if you can buy a stock that's down from above 26 uh to 24 10% discount after a very strong earnings report some of these stocks are not getting a lot of love in the market. And to me with the bullish power gauge rating and a great earnings report in a strong industry group. Uh this was this was sort of a midcap name that I felt was a good balance between the very large Sora. The quality of um Centine and you know this is sort of a a smaller cap name only 12 billion and and the midcap stocks are doing very well. >> Yes, I like the varied recommendations for sure. But another thing that I comparing healthc care stocks to the tech stocks we so often talk about is what volatility looks like. Yes, the chart looks volatile for this one, but that volatility is in a a really narrow range. We're talking about a 52- week range right now of $20 to $27.5 roughly. That's a really narrow range of volatility versus uh many of the the growth tech stocks we'll talk about could have a range of 3 to 300 in 52 weeks. you know, there's just wild ups and downs. So, talk about that a little bit. When it comes to volatility in this kind of a sector, what does volatility look like here compared to some moves you might see in the AI tech sector growth stocks? >> It's going to be a little more volatile than a large Humanana or uh United Health or even Sentine. Uh but that's typical. But as you point out, compared to some of the Midcat socks in the uh tech sector, this is very very uh benign. I mean this is like a gust of wind and so versus a hurricane and so again volatility is your friend if you have a fundamental point of view and you have a plan and I can't stress enough the importance of having a plan and executing it and that's what we try and do at taken analytics we have a a disciplined approach starting with the power gauge looking at the technicals but always looking at the sector and the industry group because that's where you get your tailwind and that's where you get viewer added performance without the undue risk of extreme volatility. >> Yeah, that risk factor is something I hear about from viewers all the time of this one seems like it have a lot of volatility. So, I I love what you just said about uh we take a very uh disciplined approach and I think when you have the numbers and you have the data and you focus on the numbers, which is what Power Gauge does, it helps to take some of that fear, some of that risk away when you're really just focused on the numbers. That's why I love having you on the show, Mark. It's a great perspective for how to look at investing. I do have one more question about risk and that is are there any risk factors for this stock or really the healthcare sector as a whole that could change the bullishness that we're seeing in healthcare? Uh what risks could exist here in this sector? >> Well, there's only one risk in the healthc care sector historically and that's uh government regulation. But government regulation in terms of kidney uh treatments, kidney failure is is few and far between. And it's such critical care in the managed care area where Sankora and Centine live. It's just keeping up with the cost structure that might uh be imposed by government terms of subsidies being removed or you know the re the repayment the reimbursement rate is really the biggest risk and that's what Centine had to deal with in 2025. the reimbursement rates were not keeping up with the rising costs. So that all got rectified in not all but it got rectified in 2026. So yeah, it's it's government regulation and reimbursement rates. That's really the only risk. Competition is not an issue. >> I love it. We came full circle in this conversation. Started out talking about executive orders and government regulation or deregulation and we ended the conversation there too. Mark, thank you so much for your time today and all of the good advice for our viewers. We really appreciate you sharing your knowledge and decades of experience with us. Let me know your thoughts in the comments. Have you gotten into healthcare this year? Are there other names in healthcare that you were interested in? I'd love to hear those ideas in the comments. And if you want to hear more from Mark and some other recommendations he has, check out our last interview from last month. You'll hear more on some of those bigger names and wider view on the market from Mark as