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Validea's Top Five Healthcare Stocks Based On Benjamin Graham - 7/19/2020

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.

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
SALES:FAIL
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

Detailed Analysis of TARO PHARMACEUTICAL INDUSTRIES LTD.

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ALEXION PHARMACEUTICALS, INC. (ALXN) 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: Alexion Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on the development and commercialization of therapeutic products. The Company's marketed products include SOLIRIS (eculizumab), Strensiq (asfotase alfa), Kanuma (sebelipase alfa), ULTOMIRIS, Andexxa and Ondexxya. The Company's clinical development programs include ALXN1210, ALXN1810, ALXN1720, ALXN1830, ALXN1840 and ABY-039. The Company's ULTOMIRIS is a long-acting C5 inhibitor discovered and developed by Alexion that works by inhibiting the C5 protein in the terminal complement cascade. Its SOLIRIS is an C5 inhibitor discovered and developed by Alexion that works by inhibiting the C5 protein in the terminal complement cascade. SOLIRIS is a humanized monoclonal antibody that effectively blocks terminal complement activity at the doses prescribed.

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:FAIL
PRICE/BOOK RATIO:FAIL

Detailed Analysis of ALEXION PHARMACEUTICALS, INC.

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EDWARDS LIFESCIENCES CORP (EW) is a large-cap growth stock in the Medical Equipment & Supplies 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: Edwards Lifesciences Corporation is a manufacturer of heart valve systems and repair products used to replace or repair a patient's diseased or defective heart valve. The Company is engaged in patient-focused innovations for structural heart disease and critical care monitoring. Its segments include United States, Europe, Japan and Rest of World. Its products are categorized into three areas: Transcatheter Heart Valve Therapy, Surgical Heart Valve Therapy and Critical Care. It also develops hemodynamic monitoring systems that are used to measure a patient's cardiovascular function in the hospital setting. It is developing products, such as the Edwards SAPIEN 3 Ultra System and Edwards SAPIEN XT transcatheter heart valve, among others. Its Transcatheter Heart Valve Therapy and Surgical Heart Valve Therapy products are manufactured in the United States, Singapore and Switzerland. Critical Care products are manufactured in its facilities located in Puerto Rico and the Dominican Republic.

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:FAIL
PRICE/BOOK RATIO:FAIL

Detailed Analysis of EDWARDS LIFESCIENCES CORP

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HELEN OF TROY LIMITED (HELE) is a mid-cap growth stock in the Medical Equipment & Supplies 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: Helen Of Troy Limited is a global consumer products company that offers a range of solutions for its customers through a range of brands. The Company is a global designer, developer, importer, marketer and distributor of a portfolio of brand-name consumer products. The Company has three segments. The Housewares segment provides a range of consumer products for the home. The Health & Home segment focuses on healthcare devices, such as thermometers, humidifiers, blood pressure monitors and heating pads; water filtration systems, and small home appliances, such as portable heaters, fans, air purifiers, and insect control devices. The Beauty segment's products include electric hair care, beauty care and wellness appliances; grooming tools and accessories, and liquid-, solid- and powder-based personal care and grooming 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
SALES:PASS
CURRENT RATIO:PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:PASS
LONG-TERM EPS GROWTH:PASS
P/E RATIO:FAIL
PRICE/BOOK RATIO:FAIL

Detailed Analysis of HELEN OF TROY LIMITED

Full Guru Analysis for HELE>

Full Factor Report for HELE>

ICU MEDICAL INC (ICUI) is a mid-cap growth stock in the Medical Equipment & Supplies 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: ICU Medical, Inc. is engaged in the development, manufacture and sales of medical devices used in infusion therapy, oncology and critical care applications. The Company's product line includes needlefree connection devices, custom infusion sets, closed system transfer devices (CSTD) for the handling of hazardous drugs, advanced sensor catheters, needlefree closed blood sampling systems, disposable pressure transducer systems and hemodynamic monitoring systems. The primary critical care products it manufactures are Hemodynamic Monitoring Systems, SafeSet Closed Blood Sampling and Conservation System, Transpac Consumable Blood Pressure Transducers and Other Critical Care Products. The primary oncology products it manufactures are ChemoLock Needlefree CSTD, ChemoClave Needlefree CSTD and Diana Hazardous Drug Compounding System. As of December 31, 2016, its products were used in acute care hospitals and ambulatory clinics in more than 65 countries throughout the world.

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:FAIL
PRICE/BOOK RATIO:FAIL

Detailed Analysis of ICU MEDICAL INC

Full Guru Analysis for ICUI>

Full Factor Report for ICUI>

More details on Validea's Benjamin Graham strategy

Benjamin Graham Stock Ideas

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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