Markets

Validea's Top Five Healthcare Stocks Based On David Dreman - 6/16/2019

The following are the top rated Healthcare stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.

BIOGEN INC (BIIB) is a large-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 79% 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: Biogen Inc. is a biopharmaceutical company. The Company focuses on discovering, developing, manufacturing and delivering therapies to people living with serious neurological, rare and autoimmune diseases. The Company markets products, including TECFIDERA, AVONEX, PLEGRIDY, TYSABRI, ZINBRYTA and FAMPYRA for multiple sclerosis (MS), FUMADERM for the treatment of severe plaque psoriasis and SPINRAZA for the treatment of spinal muscular atrophy (SMA). It also has a collaboration agreement with Genentech, Inc. (Genentech), a member of the Roche Group, with respect to RITUXAN for the treatment of non-Hodgkin's lymphoma, chronic lymphocytic leukemia (CLL) and other conditions, GAZYVA indicated for the treatment of CLL and follicular lymphoma, and other anti-CD20 therapies. The Company's product candidate includes OCREVUS; Biosimilar adalimumab; Aducanumab; E2609; BIIB074; BAN2401; Opicinumab; CIRARA; BIIB061; BIIB054; BIIB067, and BIIB068.

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.

MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS

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 David Dreman is 69% 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.

MARKET CAP: PASS MARKET CAP: FAIL
EARNINGS TREND: PASS EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: FAIL PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS CURRENT RATIO: PASS
PAYOUT RATIO: PASS PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: PASS

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

LIGAND PHARMACEUTICALS INC. (LGND) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 69% 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: Ligand Pharmaceuticals Incorporated (Ligand) is a biopharmaceutical company that focuses on developing and acquiring technologies that help pharmaceutical companies discover and develop medicines. The Company is involved in the development and licensing of biopharmaceutical assets. The Company employs research technologies, such as nuclear receptor assays, high throughput computer screening, formulation science, liver targeted pro-drug technologies and antibody discovery technologies to assist companies in their work toward obtaining prescription drug approvals. As of December 31, 2016, it had partnerships and license agreements with over 85 pharmaceutical and biotechnology companies, and over 140 various programs under license with it were in various stages of commercialization and development. It has contributed research and technologies for approved medicines that treat cancer, osteoporosis, fungal infections and low blood platelets, 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.

MARKET CAP: PASS MARKET CAP: FAIL MARKET CAP: FAIL
EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: FAIL PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS
PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL YIELD: FAIL YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: PASS

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

ABBVIE INC (ABBV) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 64% 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: AbbVie Inc. (AbbVie) is a research-based biopharmaceutical company. The Company is engaged in the discovery, development, manufacture and sale of a range of pharmaceutical products. Its products are focused on treating conditions, such as chronic autoimmune diseases in rheumatology, gastroenterology and dermatology; oncology, including blood cancers; virology, including hepatitis C virus (HCV) and human immunodeficiency virus (HIV); neurological disorders, such as Parkinson's disease and multiple sclerosis; metabolic diseases, including thyroid disease and complications associated with cystic fibrosis, and other serious health conditions. It offers products in various categories, including HUMIRA (adalimumab), Oncology products, Virology Products, Additional Virology products, Metabolics/Hormones products, Endocrinology products and other products, which include Duopa and Duodopa (carbidopa and levodopa), Anesthesia products and ZINBRYTA (daclizumab).

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.

MARKET CAP: PASS MARKET CAP: FAIL MARKET CAP: FAIL MARKET CAP: PASS
EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: FAIL PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: PASS
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: FAIL
PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: FAIL
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL YIELD: FAIL YIELD: FAIL YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: FAIL

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

AMGEN, INC. (AMGN) is a large-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on David Dreman is 64% 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: Amgen Inc. is a biotechnology company. The Company discovers, develops, manufactures and delivers various human therapeutics. It operates in human therapeutics segment. Its marketed products portfolio includes Neulasta (pegfilgrastim); erythropoiesis-stimulating agents (ESAs), such as Aranesp (darbepoetin alfa) and EPOGEN (epoetin alfa); Sensipar/Mimpara (cinacalcet); XGEVA (denosumab); Prolia (denosumab); NEUPOGEN (filgrastim), and other marketed products, such as KYPROLIS (carfilzomib), Vectibix (panitumumab), Nplate (romiplostim), Repatha (evolocumab), BLINCYTO (blinatumomab), IMLYGIC (talimogene laherparepvec) and Corlanor (ivabradine). It focuses on human therapeutics for the treatment of serious illness in the areas of oncology/hematology, cardiovascular disease and neuroscience. Its product candidates in Phase III include Erenumab for episodic migraine, Aranesp for myelodysplastic syndromes, BLINCYTO for acute lymphoblastic leukemia and IMLYGIC for metastatic melanoma.

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.

MARKET CAP: PASS MARKET CAP: FAIL MARKET CAP: FAIL MARKET CAP: PASS MARKET CAP: PASS
EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: FAIL P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: FAIL PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: FAIL PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: PASS PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: FAIL CURRENT RATIO: PASS
PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: FAIL PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL YIELD: FAIL YIELD: FAIL YIELD: PASS YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: FAIL LOOK AT THE TOTAL DEBT/EQUITY: FAIL

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

Since its inception, Validea's strategy based on David Dreman has returned 95.97% vs. 190.41% for the S&P 500. For more details on this strategy, click here

About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.

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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