NEW YORK ( TheStreet) -- Gentium ( GENT), Concord Medical Services ( CCM), Nektar Therapeutics ( NKTR), Dendreon ( DNDN), ShangPharma ( SHP), Teva Pharmaceutical ( TEVA), WuXi PharmaTech ( WX), Elan ( ELN), Celgene ( CELG), and Par Pharmaceutical ( PRX) are expected to return up to 72%, based on their respective 12-month price targets.

Health care stocks had underperformed in the last one year due to uncertainty over the federal health care policy and ailing European economies. In the last one year, while the S&P 500 INDEX returned 11%, the S&P Global Health Care Sect. (ETF) notched up only 5.6%. However, 2011 is shaping up well, as the health care sector tracked broader indices rising 6% since the start of the year compared to 5.6% for the broader index. The proposed health care spending cuts announced by Barak Obama during the week did not weigh heavily on the sector. Relatively lower volatility of stock performance compared to broader indices and a pick-up in M&A activity in the sector augurs well for the sector.

Going ahead, the global health care market could get a boost on growing medical expenditure in emerging countries. Rising income levels and improved growth rates could increase public and private spending on health care. The demand for high-technology medical devices will likely expand going forward, benefiting the relevant U.S. companies. An aging population and public health insurance could sustain demand in the developed countries.

We have identified 10 stocks which, according to analysts, could outperform their peers and broader market indices. These stocks have an upside potential of 20% to 72% with a mean upside value of around 40% and average buy ratings of 80%.

In comparison, pharma giants Johnson & Johnson ( JNJ), Pfizer ( PFE), Merck ( MRK), Abbott Laboratories ( ABT), Bristol Myers Squibb ( BMY) and Eli Lilly ( LLY) have upsides of -2% to 14%, according to analysts' estimates.

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