Although investors' reaction thus far has been to sell the public managed care stocks -- WellPoint ( WLP), United Healthcare ( UNH), Aetna ( AET), and Cigna ( CI) -- I think that's a mistake and more reflective of short-term sentiment, which had favored repeal of the mandate, than longer-term fundamentals. If I had to pick, I would buy Cigna right here. The company has very little ACA exposure, a good management team, and a solid business. Most of the others should recover over time as well. A word of caution: The court partially invalidated the ACA's Medicaid expansion, which could be a point of confusion for managed care companies focused on Medicaid, such as Centene ( CNC) ( United Healthcare ( UNH) also has a significant Medicaid business). Essentially, the Court ruled that Congress could not threaten penalties (read: take away funding) if a state failed to comply with the Medicaid expansion. This might create uncertainty about what states will do, given obviously strained budgets. On the other hand, these companies will still get more patients. I'm not really sure how to think about this, so I'm going to stay away from the Medicaid stocks for now.
I don't really think there is a clear macro impact on biotech stocks like Gilead Sciences ( GILD), Celgene ( CELG), Amgen ( AMGN) or Vertex Pharmaceuticals ( VRTX). Winners will still win and losers will still lose. Innovation, or at least what passes as innovation, will still reign supreme. (As an aside: I'm not so sure the threat of biosimilars, basically biologic "generics," will turn out to be as big a deal as some investors believe although upholding the law means the 12-year exclusivity on biotech drugs remains in place.) Pharma seems adequately prepared to deal with the taxes and will probably keep acquiring promising biotech companies and paying reasonable dividends. I like Pfizer ( PFE) and Merck ( MRK) the most of the pharma group. Obviously, I haven't had the time to parse every nuance of the court's ruling, but I wanted to get some preliminary thoughts out for my readers. I must say I'm very excited to finally move forward. The uncertainty surrounding the ACA was awful and has made for a very difficult investment environment in healthcare. Overall, I think the future looks bright. Disclosure: Sadeghi has no in any of the other stocks mentioned in this article. Follow Nathan Sadeghi-Nejad on Twitter.