The 2013 All-America Research Team: Medical Supplies & Devices, No. 3: David Lewis

David Lewis of Morgan Stanley repeats in third place. “I go to him for his industry knowledge and what he heard from the marketplace,” reports one money manager, adding that the analyst provides “very good models and thoughtful recommendations.” Year to date through late August, his group outperformed the S&P 500 by 500 basis points but trailed the wider health care market by 300 basis points, notes Lewis. “In general, we expect less relative outperformance versus the S&P going forward,” he says, “and expect devices to continue to lag broader health care.” The analyst’s top pick is Deerfield, Illinois–based Baxter International. Lewis reiterated his overweight view in May, when the device maker’s shares were trading at $70.46. “Our view is that the underlying value of Baxter is higher, and we see multiple catalysts ahead,” he notes. By the end of August, the stock had slipped 1.3 percent, to $69.56, in line with the sector’s decline. “David consistently provides a differentiated viewpoint,” another backer attests. — Leslie Kramer