Top Stock Picks '09: HMS Holdings (HMSY)

Filed under: Newsletters, Stocks to Buy, Recession, Best Stocks for 2009

This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.

"HMS Holdings Corp. (NASDAQ: HMSY), which makes its money by correcting errors in Medicaid payments and recovering misspent money, is my top pick for 2009," says growth stock specialist Dave Dyer.

In his Dave Dyer's Newsletter, he explains, "This is a company whose fundamentals appear to improve as the economy declines.

"If you think that the unemployment rate will rise in 2009, then you ought to love HMS Holdings. They recently raised their 2009 guidance because they expect higher unemployment.

"The company stated that the unemployment rate is the most important leading indicator of growth in the Medicaid program, which in turn, is one of the most important drivers of their revenue.

"Medicaid is funded by the federal government and administered by the individual states. With 40 of the 50 states under contract, HMSY essentially has a monopoly in this market.

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Top Stock Picks '09: HMS Holdings (HMSY) originally appeared on BloggingStocks on Sun, 11 Jan 2009 13:00:00 EST. Please see our terms for use of feeds.

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