Investing in healthcare stocks

There is no industry as low-risk and as high-reward as health care.

From large-cap insurers and Big Pharma to beginning-stage biotech stocks and medical-waste small caps, there is tremendous opportunity out there in the health care sector.

Consider that Eli Lilly (NYSE: LLY) might have developed an Alzheimer’s treatment to keep dementia in its early stages from worsening. Consider that Merck (NYSE: MRK) might have a home run in its new brittle-bone drug that will prevent fractures in the elderly.

These are not only great developments for the health of Americans — they also are going to be big moneymakers going forward.

And beyond the growth in health care as baby boomers age and need more care, there’s also the recession-proof nature of the sector. After all, people don’t stop going to the hospital or cancel their prescriptions just because of a downturn in the stock market or the broader economy.

Here's a list of health care players hitting 52-week highs right now as proof of the breadth and power of the sector:

• Cubist Pharmaceuticals (NASDAQ: CBST): Small-cap biotech, +25% YTD
• Covidien (NYSE: COV): Blue chip that makes medical devices, +33% YTD
• Gilead Sciences (NASDAQ: GILD): Large-cap biomedical stock, +66% YTD
• HealthSouth (NYSE: HLS): Outpatient therapy and rehab company, +39% YTD
• Jazz Pharmaceuticals (NASDAQ: JAZZ): Small-cap biotech, +38% YTD
• Eli Lilly (NYSE: LLY): Big Pharma powerhouse, +15% YTD
• Medtronic (NYSE: MDT): Large-cap medical technology company, +13% YTD
• Merck (NYSE: MRK): Another Big Pharma player, +19% YTD
• Peregrine Pharmaceuticals (NASDAQ: PPHM): Clinical-stage biotech, +405% YTD
• Pfizer (NYSE:PFE): Pharmaceutical heavyweight, +14% YTD
• Sanofi (NYSE:SNY): Global drugmaker and a big Buffett stock, +23% YTD
• Steris (NYSE:STE): Small cap focused on medical waste, +19% YTD
• Tenet Healthcare (NYSE:THC): Health care services company, +22% YTD