If you haven't figured out that healthcare stocks are an increasingly popular place for investors to be, then don't worry. PowerRatings.net is here to remind you that these high PowerRatings stocks continue to be among the best bets for investors looking for stocks that will be higher in a year's time.

Healthcare stocks are typically defensive in nature, providing investors with the assurance that, whatever happens to the economy, people will still get sick and still need medical care. While pundits continue to wonder whether or not the potential for changing political winds in November will affect healthcare stocks for the better or worse, the fact remains that a great many of these stocks sport the kind of high PowerRatings that investors should be on the lookout for.

All four stocks in today's discussion hail from the Medical Instruments and Supplies industry. Although there are industries with higher PowerRatings, there are few industries that have as many high PowerRatings stock sitting at its top.

That's not to say that Medical Instruments and Supplies industry group's PowerRating is anything for investors to turn their noses up at. Looking at industry group behavior since 1995, we found that industries with PowerRatings of 7 have produced average annualized returns of more than 18%. Compare that to the performance of the average industry over the same time period: an annualized average return of approximately 14.61%.

When combined with high PowerRatings stocks, investors can benefit greatly from searching 7-rated industries. The combination of high PowerRating stocks, stocks with PowerRatings of 8, 9 or 10, and industries with PowerRatings of at least 7 is one that we highly recommend for investors using PowerRatings to pick stocks that have historically beaten the average stock after a year's time.

The top stock in the Medical Instruments and Supplies industry group is Hillenbrand Industries (HB | news | PowerRating | PR Charts ) with a PowerRating of 9. Our research, looking at thousands and thousands of simulated stock trades since 1995, revealed that stocks with PowerRatings of 9 have been higher one year later more than 79% of the time. These stocks have also outperformed the average stock, returning on average more than 18% after one year.

The average stock, by comparison, has been higher one year later less than 68% of the time. In terms of performance, the average stock has returned 12-13% after a year.

Hillenbrand Industries is a holding company that operates two main businesses: a health care company, Hill-Rom Company, which is a medical technology manufacturer, and a funeral services firm, Batesville Casket Company. Hillenbrand Industries recently reported lower first quarter net income compared to the previous year, although sales were up.

As the PowerRatings chart of Hillenbrand Industries shows, the stock has rallied from its early January lows in the high 40s, climbing as many as six points in the days and weeks since.

The rest of the stocks in today's discussion all have PowerRatings of 8. Stocks with PowerRatings of 8 have been higher one year later more than 74% of the time, based on our research. These stocks have also tended to average gains of more than 17% after one year.

First among these 8-rated stocks is Stryker Corporation (SYK | news | PowerRating | PR Charts ). Stryker specializes in orthopedic products and services such as implants, ear, nose and throat and interventional pain equipment and endoscopic surgical navigation. The company recently reported fourth quarter net income gains of 21%.

Stryker Corporation has been an 8-rated stock for the past several weeks as it has moved above and below its 200-day moving average. The stock is currently testing its 200-day moving average for resistance in the high 60s, as Stryker's PowerRatings chart reveals.

Becton Dickinson and Company (BDX | news | PowerRating | PR Charts ) is another 8-rated stock that investors should consider if they are looking for defensive stock names that are more likely than the average stock to be higher in a year's time. Becton Dicksinson makes medical supplies, laboratory equipment and diagnostic products used by healthcare institutions, clinical laboratories and the general public.

Becton Dickinson and Company recently reported an increase in quarterly net profit based on stronger-than-expected sales for the quarter ended December 31. The stock has rallied strongly in recent weeks after testing its 200-day moving average for support in late December.

Our last stock for today's discussion is Cooper Companies Inc. (COO | news | PowerRating | PR Charts ), which also has a PowerRating 8. Cooper Companies operates two main business units: Cooper Vision and CooperSurgical. CooperVision markets a number of brand name contact lens worldwide. CooperSurgical specializes in products and services for women's health care.

Cooper Companies has been trading under its 200-day moving average for the past few months. The stock saw its PowerRating increase from 7 to 8 in early January, as the stock has moved up slightly from the mid-30s to the high 30s.

David Penn is Senior Editor at PowerRatings.net

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