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Mylan Inc (MYL) has a bullish Chaikin Power Gauge stock rating and has been outperforming the market since mid-October. The dynamic duo of a bullish Power Gauge rating and positive relative strength to the market is further enhanced by the strength of the Health Care Sector.
On Friday, Mylan completed the purchase of Abbott Laboratories non-U.S. specialty and branded generics businesses. A new company has been formed in the Netherlands with 3,800 employees that will expand MYL’s product lines and geographic footprint. Most importantly in a transaction know as an inversion, Mylan will see its tax rate drop from 25% into the teens over the next 3-5 years.
MYL is expected to report its 2014 4th quarter earnings before the market opens tomorrow. The company has bested analyst estimates in 5 of the past 6 quarters and is likely to beat estimates when they report on Monday. Mylan should report $3.55 for 2014 vs. $2.89 in 2013, with analysts looking for a 17% increase to $4.15 per share in 2015.
Mylan is one of the world’s leading quality generic pharmaceutical companies. With an aging population and a host of generic drugs due out in 2015, MYL is an attractive long-term holding. The Abbott transaction only enhances Mylan’s long-term growth prospects.
MYL has a bullish Chaikin Power Gauge rating that is driven by Industry Group strength in Drug stocks, a strong earnings trend and projected earnings growth, as well as positive trends in analyst estimates revisions. The technical picture is improving with relative strength to the market having turned positive in mid-October.
Plus:
Chaikin Analytics stock research
Chaikin Power Gauge stock rating model
NASDAQ Chaikin Power Stock Indexes
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
