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Tickers in this Article: MYL, BEC, ABC, CAH
Mid-cap stocks always seem to fly under the radar, but it's among this class of stocks that investors can often find the best performers. One group of mid-caps that's been overlooked by the financial press recently is healthcare issues. With the retirement of the baby boom generation and all the attendant products and services that will be required to meet their health care needs, this sector offers a universally recognized, generational investment opportunity. We offer here a sampling of some of the smartest mid-caps in anything but a middle-of-the-road asset class. (Learn more about market capitalization in our related article, Market Capitalization Defined.)

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Fabulous Pharmaceuticals Mylan Inc. (Nasdaq:MYL) is a global pharmaceutical concern that produces and markets drugs and chemicals for pharmaceutical products. Just this week, Moody's debt rating agency raised its outlook for Mylan from stable to positive on account of strong generic drug sales. The stock trades for a mere 1.56 times book value and has surged from its lows back in October at $5.75 to a current $12.84, for a gain of over 100%.

Marvelous MedTech
Beckman Coulter Inc.
(NYSE:BEC) is a manufacturer of biomedical testing instruments for hospitals, medical labs and doctors' offices. This week the company announced three quarters of a billion dollars in senior notes and common stock to be offered to finance (in part) the acquisition of Olympus Corporation's Life Science business. Beckman Coulter stock pays a modest annual dividend of 1.27% and has risen 50% from its 52-week low set back in December of 2008.

Pushing Drug Distributors
AmerisourceBergen Corporation (NYSE:ABC) is a drug distribution operation with interests in the U.S., U.K. and Canada. The company's fundamentals are impressive – as is its recent stock performance. ABC sells for two times book value, has a modest 12.01 P/E ratio and pays an annual 1.08% dividend. It's had an excellent run since bottoming last fall at $26.66, appreciating by a full third to stand today at $35.96. AmerisourceBergen announced this week that it would split its stock and raise the dividend on its common shares by 20%.

Cardinal Health Inc.
(NYSE:CAH) has a very healthy P/E multiple of 10.76 and yields 1.57% annually. The stock trades at a price/book ratio of just 1.52 and has risen swiftly since bottoming in March. It now stands roughly 30% higher at $35.68. CAH is essentially a medical products distribution business, but also manufactures respiratory equipment and some surgical instruments. (For more, see our related article Investing In Medical Equipment Companies.)

The Wrap
For healthy returns from an underscrutinized group of companies, consider the above mentioned healthcare issues. Their recent price performance and their fundamentals point to potential continued strength. (For more on this topic, read Investing In The Healthcare Sector.)

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