Alexion Pharmaceuticals ( ALXN) is the fastest-growing stock on the list above. Its EPS grew at 87.72% on average annually during the past five years.

It also has a high operating margin of 28.16%. Alexion is engaged in discovering, developing and commercializing therapeutic products aimed at treating patients with severe and life-threatening diseases. Its total revenue increased from only $1.56 million in 2006 to $541 million in 2010. ALXN was held by 20 hedge funds at the end of the third quarter. Andreas Halvorsen's Viking Global also bought $46 million worth of new ALXN shares during the third quarter. Jim Simons' Renaissance Technologies had $23.4 million invested in ALXN at the end of September.

We like healthcare stocks. Healthcare is still growing faster than the rest of the economy and National Health Expenditures (NHE) as a share of GDP is expected to reach 19.6% by 2019. We think health care is a promising sector and we encourage investors to do some in-depth research on the profitable healthcare stocks for their portfolios.

>>To see these stocks in action, visit the 10 Health Care Stocks to Watch portfolio on Stockpickr.
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

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