 We were early to the trade on the rebound in energy and financial stocks for our 2021 Bowtie Nation portfolio with an average return of 83% in the four stocks added. But it's time to move on and I've found the next rebound stocks to watch. In this video, I'll show you why healthcare stocks could be the breakout winners this year and three stocks I'm buying right now. We're talking stocks to buy in May today on Let's Talk Money. Hey, Bowtie Nation, Joseph Holger with the Let's Talk Money channel, and you know I've got to send a special shout out to all of you out there in the nation, thank you for spending a part of your day to be here. If you're not part of that community yet, just click that little red subscribe button. It's free and you'll never miss an episode. Our Bowtie Nation portfolio on stock card is up 32% and beating the market by nearly 20% this year. Shares of our energy stocks like Diamondback Energy, Ticker FNG, and Devin Energy, Ticker Deviant jumped 54% and 155% since adding them in October. Shares of City Group are up over 69% and Wells Fargo was up 54% just since December. But the momentum has slowed for stocks in the energy and financial sectors. This sector tracker here shows stocks in the energy sector actually posted a loss over the last month and financials have underperformed that broader market index. Fortunately, I've found the next hot stock sector that could be taking over from here. Those of you in the nation know I've been following healthcare stocks for a few months now. Shares of CVS were one of the first to add to our stock portfolio. Now up 30% since October. I also added shares of Health Insurer Anthem, Ticker ANTM, now up 40% and beating the market by 11% since November. And the idea here is that as hospitals and other healthcare providers get back to offering those higher margin services, then profitability could shoot higher this year. As the companies in the healthcare sector return to their business as usual, instead of using all those resources to fight COVID, these will be the stocks to buy for your portfolio. We got our first confirmation of that with the earnings report of Johnson & Johnson last month. With its breadth in segments of healthcare, from medical devices to pharmaceuticals, supplies and that over-the-counter products, there is no better stock to watch than J&J for that clue into the healthcare sector. The company reported a strong first quarter earnings report, with 8% sales growth and 12.5% growth in earnings per share over the last year, but it was what they told us in the specific segments that has me excited for these healthcare stocks. The company reported 11% growth in its medical devices segment, even with elective procedures still slow to return in Europe. Sales at the pharmaceuticals unit were up 10% to over $12 billion. In fact, all this was so good that management increased its 2021 sales and profit targets. I'm so confident in the rebound for healthcare stocks, I'm adding 3 of these to our portfolio in May. I'll show you the upside to each of those stocks, my price target and catalyst for long-term returns. We won't be doing a full review of the portfolio this month, because I want to get to those 3 stocks I'm adding. I'll leave a link to stock card in the video description below. Click through and then go to the portfolios in the top menu. You'll find the Bowtionation portfolio in the stock pick section. It's totally free to follow and you'll get email notifications whenever I buy or sell from the portfolio. And as a special bonus, I've negotiated an exclusive discount for all of you out there in the community. Use the promo code Bowtionation, all one word in lower case, for an exclusive discount beyond the free trial. We've already got some exposure to healthcare retail and insurance in the portfolio so this month I want to diversify a little more across the sector. Pharmaceuticals have been hit hard lately so I think there's some real value there. Hospital services is where we'll see that rebound play coming and one of the biggest trends over the next decade is in healthcare information technology so I want to put something in the portfolio there as well. I'll be adding all 3 of these stocks to our portfolio but if you want that broad exposure to the theme, I want to highlight a few exchange-traded funds you can buy that are going to also follow those prices higher. First is the broadest of the three, the iShares Healthcare Select Sector spider, ticker XLV with a 23% return over the last year and an expense ratio of just 0.12%. The fund invests broadly across the sector with over 62 stocks in equipment and supplies, pharmaceuticals, services and biotech. A list of the top 10 stocks is a who's who of the biggest companies in the space including Johnson & Johnson, Pfizer and Medtronic. Now the fund is so diversified it's probably not going to blow the doors off on returns but offers a 1.5% dividend yield and will track the sector. More of a rebound play here would be in the iShares Biotechnology ETF, ticker IBB. The fund holds 279 companies in biotechnology and pharmaceuticals with a strong concentration about 80% of the fund in biotech companies. The fund is up 25% over the last year but has fallen 9% since its February peak on that sell-off in high growth names so this one could see some of those returns come back if healthcare does well this year. Last year before we get to those individual stocks to buy is the iShares US Medical Devices ETF, ticker IHI and its 40% return just over the last year. Medical equipment companies actually did relatively well last year but could surprise even higher this year and next. Hospitals are going to be flush with cash on their return to elective services and might need to upgrade equipment that is worn down over the last year. The fund holds shares of 64 companies within the devices and tools segment of healthcare with some great names here like Avid Labs, Medtronic and Intuitive Surgical. Just those three funds are going to give you the upside to the theme if you just want broad exposure without having to pick your stocks. I want to highlight those three stocks that I'm buying for the portfolio this month. First here is Tiva Pharmaceuticals, ticker TEVA, the largest generic drug maker in the world and one in nine prescriptions filled in the United States. Tiva has been under pressure for the last few years on patent expirations, litigation over opioids and a huge debt it took on for acquisitions but the shares have found a bottom over the last year. It's still down 15% from the recent peak so I think this has got some great immediate upside potential along with that longer term growth. Management aggressively cut operating costs by $3 billion in 2019 and is working towards the company's debt leverage target. The cuts really helped last year on weaker sales during the pandemic and you can see here the effect on profitability with that operating margin increasing from 24% to nearly 27% for this year's target. Even after the cuts and closing non-performing facilities, Tiva still has the scale advantage to fund a strong pipeline. Management is targeting between 200 to 350 new drug filings a year and more than 20 product launches. That's going to provide the cash flow to keep paying off the debt and that's important because right now the biggest overhang on the stock is just investor sentiment over too much debt. It's one of the reasons why shares only trade for 0.7x sales versus a valuation of 2.8x sales for GlaxoSmithKline. It's because investors just aren't willing to pay more for Tiva. You move the debt leverage in the right direction though and you improve sentiment and the valuation. The company already generates $2.1 billion in free cash flow and two of its branded drugs, Osteato for Huntington's Disease and Ajovi for Migraines continue to grow revenue by double digits to potentially blockbuster status. The average analyst's target is for $12.26 a share, about 15% from here. I like it all the way back up to the recent high of $12.50 this year and eventually to $13 or $14 a share over the next couple of years. Next here is Fresenius Medical, ticker FMS, the largest dialysis network in the world with over 4,000 centers and products serving half of all dialysis patients including treatments in 50 countries. The majority of the revenue here is generated in North America which makes me think it can recover from that pandemic driven weakness faster. It's going to take more time for EU and emerging business to come back but those sales in the US should do really well this year. The pandemic meant increased costs for PPE and E for its workers as well as a slowdown in patients starting dialysis treatment. That sales weakness is expected to continue for much of this year but could start turning around in the fourth quarter or even sooner and there's a good chance that that drives the stock price in anticipation. Even against this weakness though, the company still met its 2020 financial targets and is planning its 24th consecutive dividend increase in May paying a 1.8% yield. Management recently confirmed its 2025 targets and with those operating costs that it's deploying now along with the cuts in the PPE and E costs when those are no longer needed, that's kind of significantly drive profitability. The average analyst's target here is only for about $40.62 a share but I think shares could be worth $45 each over the next year on top of that dividend. It's trading for just 16 times earnings which is below the valuation on similar stocks and makes it a good value play as well. Teladoc Health, ticker TDOC is my growth stock of the group and easily the riskier of the list. Teladoc is the global leader in virtual healthcare with a provider network that covers 70 million US patients and a billion member data points from traditional health to remote monitoring and next generation primary care. And obviously last year was huge here, like two years of growth all in one but the company was already growing at a solid rate. Membership growth has grown 40% annually since 2016 and 10.6 million patients visits last year. Revenue doubled last year and 80% of that is from recurring services so I like this as a stability plate even if the growth in telehealth slows from last year's pace. Now longer term telehealth and virtual care is the future of healthcare but I think the data is really going to be that undiscovered value, processing all that patient data for analysis and for research. Of course the risk here is that shares are already up 227% in the last two years. Even after the 35% sell-off in February drop on growth stocks, the shares still trade for 26 times on a price-to-sell basis so it's expensive here but a stock that is definitely growing into that valuation. The average analyst price target for Teladoc is at $255 a share which would be 34% return from here and even that is still 15% below the price reached in February. So some strong near-term upside potential here but also could be one of your best stocks over the next decade. Click on the video to the right for the five genomic stocks to watch for one of the biggest trends over the next decade. Don't forget to join the Let's Talk Money community by tapping that subscribe button and clicking the bell notification.