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Validea's Top Five Healthcare Stocks Based On Benjamin Graham - 11/17/2019

The following are the top rated Healthcare stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.

UNITED THERAPEUTICS CORPORATION (UTHR) is a mid-cap stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Benjamin Graham is 100% 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.

SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

TARO PHARMACEUTICAL INDUSTRIES LTD. (TARO) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Benjamin Graham is 86% 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: Taro Pharmaceutical Industries Ltd. (Taro) is a science-based pharmaceutical company. The Company operates principally through three entities: Taro Pharmaceutical Industries Ltd. (Taro Israel), and two of its subsidiaries, Taro Pharmaceuticals Inc. (Taro Canada) and Taro U.S.A. The Company markets over 200 pharmaceutical products in over 25 countries. The Company's owned product brands include Rokacet, with generic names, such as acetaminophen, codeine and caffeine; Topicort, with the generic name, desoximetasone; Etopan, with the generic name etodolac, and Ovide, with the generic name, malathion, among others. The Company's other generic products include acetazolamide, adapalene, alclometasone dipropionate, amiodarone hydrochloride, ammonium lactate, augmented betamethasone dipropionate, cetirizine hydrochloride, clobetasol propionate, clomipramine hydrochloride, clorazepate dipotassium, fluorouracil, ketoconazole, metronidazole, mupirocin and warfarin sodium, among others.

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.

SECTOR: PASS SECTOR: PASS
SALES: PASS SALES: FAIL
CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

ALEXION PHARMACEUTICALS, INC. (ALXN) is a large-cap growth stock in the Major Drugs industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Alexion Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutic products. The Company's products include Soliris (eculizumab), Strensiq (asfotase alfa) and Kanuma (sebelipase alfa). The Company's clinical development programs include Soliris (eculizumab), cPMP (ALXN1101), SBC-103, ALXN1210 (IV) and ALXN1210 (Subcutaneous). Its Soliris is the therapeutic approved for patients with either paroxysmal nocturnal hemoglobinuria (PNH) or hemolytic uremic syndrome (aHUS). PNH and aHUS result from chronic uncontrolled activation of the complement component of the immune system. Its Strensiq is for the treatment of patients with Hypophosphatasia (HPP). Its product, Kanuma is for the treatment of patients with Lysosomal Acid Lipase Deficiency (LAL-D). It is a recombinant form of the human LAL enzyme, which is a replacement therapy that is approved for the treatment for patients with LAL-D.

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.

SECTOR: PASS SECTOR: PASS SECTOR: PASS
SALES: PASS SALES: FAIL SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: FAIL
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: FAIL

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

ARENA PHARMACEUTICALS, INC. (ARNA) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Arena Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on developing small molecule drugs across a range of therapeutic areas. The Company has three primary investigational clinical programs: etrasimod (APD334) in Phase II evaluation for ulcerative colitis, APD371 entering Phase II evaluation for the treatment of pain associated with Crohn's disease, and ralinepag (APD811) in Phase II evaluation for pulmonary arterial hypertension (PAH). The Company's drug, Lorcaserin, is approved for marketing in the United States and South Korea for the indication of weight management. The Company's drug candidates in clinical development include APD334 for autoimmune diseases, ralinepag for vascular diseases and APD371 for pain. The Company's programs under collaboration include nelotanserin for dementia-associated psychosis, temanogrel for thrombotic diseases, and an undisclosed orphan GPCR for central nervous system (CNS) indication(s).

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.

SECTOR: PASS SECTOR: PASS SECTOR: PASS SECTOR: PASS
SALES: PASS SALES: FAIL SALES: PASS SALES: FAIL
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: FAIL
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: FAIL P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: FAIL PRICE/BOOK RATIO: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

BAYER AG (ADR) (BAYRY) is a large-cap value stock in the Major Drugs industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Bayer AG is a life science company. The Company's segments are Pharmaceuticals, Consumer Health, Crop Science and Animal Health. The Pharmaceuticals segment focuses on researching, developing and marketing prescription products and specialty therapeutics especially in the areas of cardiology, oncology, gynecology, hematology and ophthalmology, as well as radiopharmacology and others. The Consumer Health segment develops, produces and markets nonprescription over-the-counter products in the dermatology, dietary supplement, analgesic, gastrointestinal, cold, allergy, sinus and flu, foot care and sun protection categories, among others. The Crop Science segment researches, develops and markets crop protection solutions and seeds, and includes the subsidiary Monsanto. The Animal Health segment is engaged in the development, production and marketing of prescription and nonprescription veterinary products.

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.

SECTOR: PASS SECTOR: PASS SECTOR: PASS SECTOR: PASS SECTOR: PASS
SALES: PASS SALES: FAIL SALES: PASS SALES: FAIL SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: FAIL
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: FAIL LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: FAIL P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: FAIL PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

Since its inception, Validea's strategy based on Benjamin Graham has returned 460.66% vs. 213.90% for the S&P 500. For more details on this strategy, click here

About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.

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.

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