The hospitals -- Tenet Healthcare ( THC), Community Health Systems ( CYH), HCA Holdings ( HCA), Health Management Associates ( HMA), Lifepoint Hospitals ( LPNT), and Universal Health Services ( UHS) -- are the most obvious winners; implementation of the ACA should increase payments and reduce bad debt burdens. I still don't like these businesses generally, but I think some earnings multiple expansion will take place over the next few months. I think the ACA is a negative for medical device companies -- particularly Stryker ( SYK), St. Jude ( JUD), Medtronic ( MDT), Boston Scientific ( BSX), and Zimmer ( ZMH). The medical device industry will now have to find ways to pass along ACA-associated penalties, despite limited innovation and ongoing pricing pressure. That will be a challenge, and I would be bearishly inclined over the long-term.
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.