The following are the top rated Healthcare stocks according to Validea’s Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
UNITED THERAPEUTICS CORPORATION (UTHR) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Kenneth Fisher is 68% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: United Therapeutics Corporation is a biotechnology company. The Company is focused on the development and commercialization of products for the treatment of chronic and life-threatening conditions. The Company markets and sells four commercial therapies in the United States to treat pulmonary arterial hypertension (PAH): Remodulin (treprostinil) Injection; Tyvaso (treprostinil) Inhalation Solution (Tyvaso); Orenitram (treprostinil) Extended-Release Tablets (Orenitram); and Adcirca (tadalafil) Tablets (Adcirca). The Company markets and sells an oncology product in the United States, Unituxin (dinutuximab) Injection (Unituxin), which is approved for treatment of neuroblastoma. The Company is also engaged in early-stage research and development of a number of organ transplantation-related technologies.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| PRICE/SALES RATIO: | FAIL |
|---|---|
| TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | FAIL |
| LONG-TERM EPS GROWTH RATE: | PASS |
| FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
OPKO HEALTH INC. (OPK) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Kenneth Fisher is 60% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: OPKO Health, Inc. is a healthcare company. Its segments include Pharmaceutical, Diagnostics and Corporate. Pharmaceutical consists of the pharmaceutical operations in Chile, Mexico, Ireland, Israel and Spain and its pharmaceutical research and development operations. Diagnostics consists of the clinical laboratory operations in Bio-Reference Laboratories (Bio-Reference) and its point-of-care operations. Through Bio-Reference, it operates laboratory divisions, such as Bio-Reference, GenPath (Oncology), GenPath (Women’s Health), GeneDx and Laboratorio Bueno Salud. As of December 31, 2016, it had one commercial stage pharmaceutical product and several pharmaceutical compounds and technologies in various stages of research and development for a range of indications and conditions, including Renal Products, Biologics, hGH-CTP, Factor VII, Oxyntomodulin, active pharmaceutical ingredients, Oligonucleotide Therapeutics, NK-1 Program, Asthma and chronic obstructive pulmonary disease.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | PASS |
|---|---|---|---|
| TOTAL DEBT/EQUITY RATIO: | PASS | TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS | PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | FAIL |
| LONG-TERM EPS GROWTH RATE: | PASS | LONG-TERM EPS GROWTH RATE: | FAIL |
| FREE CASH PER SHARE: | PASS | FREE CASH PER SHARE: | FAIL |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS | THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
AMAG PHARMACEUTICALS, INC. (AMAG) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Kenneth Fisher is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: AMAG Pharmaceuticals, Inc. is a pharmaceutical company. The Company’s segment is the manufacture, development and commercialization of products and services for use in treating various conditions, with a focus on maternal health, anemia management and cancer supportive care. Its offerings focus on maternal health, anemia management and cancer supportive care, including its product, Makena (hydroxyprogesterone caproate injection); its product, Feraheme (ferumoxytol), for intravenous (IV) use, and MuGard Mucoadhesive Oral Wound Rinse. It is engaged in the development of Digoxin immune fab, a polyclonal antibody for the treatment of severe preeclampsia in pregnant women. Makena is a drug indicated to reduce the risk of preterm birth in women pregnant with a single baby having a history of singleton spontaneous preterm birth.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | PASS | PRICE/SALES RATIO: | PASS |
|---|---|---|---|---|---|
| TOTAL DEBT/EQUITY RATIO: | PASS | TOTAL DEBT/EQUITY RATIO: | PASS | TOTAL DEBT/EQUITY RATIO: | FAIL |
| PRICE/RESEARCH RATIO: | PASS | PRICE/RESEARCH RATIO: | PASS | PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | FAIL |
| LONG-TERM EPS GROWTH RATE: | PASS | LONG-TERM EPS GROWTH RATE: | FAIL | LONG-TERM EPS GROWTH RATE: | FAIL |
| FREE CASH PER SHARE: | PASS | FREE CASH PER SHARE: | FAIL | FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS | THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL | THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
ENDO INTERNATIONAL PLC (ENDP) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Kenneth Fisher is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Endo International plc is a generics and specialty branded pharmaceutical company. The Company operates through three segments: U.S. Generic Pharmaceuticals, U.S. Branded Pharmaceuticals and International Pharmaceuticals. It has a portfolio of branded pharmaceuticals offered by its U.S. Branded Pharmaceuticals segment that includes brand names, such as Lidoderm, OPANA ER, Voltaren Gel, Percocet, Fortesta Gel, Testim, TESTOPEL, Aveed, Supprelin LA and XIAFLEX. Its non-branded U.S. Generic Pharmaceuticals portfolio consists of products, such as tablets, capsules, powders, injectables, liquids, nasal sprays, ophthalmics and patches. The Company’s generics portfolio has a range of dosage forms and delivery systems. The International Pharmaceuticals segment includes various specialty pharmaceutical products for the Canadian, Latin American and world markets.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | PASS | PRICE/SALES RATIO: | PASS | PRICE/SALES RATIO: | PASS |
|---|---|---|---|---|---|---|---|
| TOTAL DEBT/EQUITY RATIO: | PASS | TOTAL DEBT/EQUITY RATIO: | PASS | TOTAL DEBT/EQUITY RATIO: | FAIL | TOTAL DEBT/EQUITY RATIO: | FAIL |
| PRICE/RESEARCH RATIO: | PASS | PRICE/RESEARCH RATIO: | PASS | PRICE/RESEARCH RATIO: | PASS | PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | PASS |
| LONG-TERM EPS GROWTH RATE: | PASS | LONG-TERM EPS GROWTH RATE: | FAIL | LONG-TERM EPS GROWTH RATE: | FAIL | LONG-TERM EPS GROWTH RATE: | FAIL |
| FREE CASH PER SHARE: | PASS | FREE CASH PER SHARE: | FAIL | FREE CASH PER SHARE: | PASS | FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS | THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL | THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL | THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
ENANTA PHARMACEUTICALS INC (ENTA) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Kenneth Fisher is 50% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Enanta Pharmaceuticals, Inc. is a research and development-focused biotechnology company. The Company uses chemistry-driven approach and drug discovery solutions to create small molecule drugs for the treatment of viral infections and liver diseases. Its research and development programs are focused on three disease targets: non-alcoholic steatohepatitis (NASH)/ primary biliary cholangitis (PBC), respiratory syncytial virus (RSV) and hepatitis B virus (HBV). It has discovered novel protease inhibitors that are members of the direct-acting-antiviral (DAA) inhibitor classes designed for use against the hepatitis C virus (HCV). These protease inhibitors, developed through its collaboration with AbbVie Inc. (AbbVie), include paritaprevir and glecaprevir (ABT-493). Its product candidates also include EDP-305, which is a farnesoid X receptor (FXR) agonist product candidate for NASH and PBC, and EDP-938, which is a clinical candidate for RSV.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | PASS | PRICE/SALES RATIO: | PASS | PRICE/SALES RATIO: | PASS | PRICE/SALES RATIO: | FAIL |
|---|---|---|---|---|---|---|---|---|---|
| TOTAL DEBT/EQUITY RATIO: | PASS | TOTAL DEBT/EQUITY RATIO: | PASS | TOTAL DEBT/EQUITY RATIO: | FAIL | TOTAL DEBT/EQUITY RATIO: | FAIL | TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS | PRICE/RESEARCH RATIO: | PASS | PRICE/RESEARCH RATIO: | PASS | PRICE/RESEARCH RATIO: | PASS | PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | FAIL | PRICE/SALES RATIO: | PASS | PRICE/SALES RATIO: | FAIL |
| LONG-TERM EPS GROWTH RATE: | PASS | LONG-TERM EPS GROWTH RATE: | FAIL | LONG-TERM EPS GROWTH RATE: | FAIL | LONG-TERM EPS GROWTH RATE: | FAIL | LONG-TERM EPS GROWTH RATE: | FAIL |
| FREE CASH PER SHARE: | PASS | FREE CASH PER SHARE: | FAIL | FREE CASH PER SHARE: | PASS | FREE CASH PER SHARE: | PASS | FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS | THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL | THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL | THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL | THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
Since its inception, Validea’s strategy based on Kenneth Fisher has returned 410.16% vs. 218.76% for the S&P 500. For more details on this strategy, click here
About Kenneth Fisher: The son of Philip Fisher, who is considered the “Father of Growth Investing”, Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world’s foremost experts on 19th century logging. Appropriately, Fisher’s firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
