Analyst Rankings: After a Super 2000, Health Care Distributors Still Look Good

This week, in our focus on the winning analysts in each industry category from our Analyst Rankings -- Equity 2000, we profile the top analysts tracking health care distributors and services. Next week we'll look at health care facilities. (Our last focus was on semiconductors.)

After a banner year in 2000, with returns topping 100%, all three of our top-ranked analysts remain positive on the health care distributors, at least in the near term. The group, which supplies hospitals, nursing homes, pharmacies and the like with everything from wholesale pharmaceuticals and medical supplies to information systems, has benefited both from a favorable environment and from investors seeking refuge in defensive sectors. While none of these analysts expect a repeat performance of last year's spectacular numbers, they project performance ranging from 15% to 25%. They warn, though, that investors should brace themselves for some volatility, particularly around the Medicare drug benefit debate. ...