It seems every ailment has a cure and every cure, an
ailment. Browsing the drug store, you can't help but feel
like "there's a pill for that," as prescribed by Dr. Siri. On
the other hand, side effects need to be monitored closely.
One could draw a similar parallel to investing in pharmaceuticals.
The Medical/Drugs sector of the Zacks Industry Rank list gained 33
positions last week -- significant movement for a sector comprised
of 97 companies. After this booster, the industry now holds a
rank of #56 out of 260 ranked industries. With positive
earnings revisions outpacing negative 143 to 74, the average
positive Earnings per Share (EPS) surprise of +10% is remarkable
given the size of the sector.
Two of the biotech and pharmaceutical companies have a particularly
positive prognosis, moving last week to a Zacks Rank #1 (Strong
Buy) from a "Buy" or "Hold" rating. This could signal
positive future performance for these stocks in response to future
positive earnings estimate revisions. While a good indicator
of industry health, it's equally important to understand the
fine-print details when mixing with other investments.
Take a look at the following companies and see if they could give
your portfolio a needed shot in the arm.
Enanta Pharmaceuticals Inc.
ENTA was upgraded to a Zacks Rank #1 (Strong Buy) last week from #3
Enanta Pharmaceuticals, Inc. is a biotechnology company. It engages
in the research and development of molecule drugs for the treatment
of infectious diseases such as the hepatitis C virus, respiratory
tract infections, intravenous and oral treatments. Consider
its strong position in royalties on sales of ABT-450, its low-cost
profile could be just the ticket for continued profitability.
Its last earnings surprise was +30%.
SCMP is a Zacks Rank #1 (Strong Buy). It moved up from a
Zacks Rank #2 (Buy) last week.
Sucampo Pharmaceuticals, Inc. is an emerging pharmaceutical company
focused on the discovery, development and commercialization of
proprietary drugs based on prostones, a class of compounds derived
from functional fatty acids that occur naturally in the human body.
Sucampo is focused on developing prostones for the treatment of
gastrointestinal, respiratory, vascular and central nervous system
diseases and disorders.
Sucampo's last earnings surprise was +400%. 2014 consensus
EPS estimates are still drifting higher. This company reports
quarterly earnings on March 12, 2014.
ENANTA PHARMA (ENTA): Free Stock Analysis
SUCAMPO PHARMAC (SCMP): Free Stock Analysis
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