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Validea's Top Five Healthcare Stocks Based On Joseph Piotroski - 11/17/2019

The following are the top rated Healthcare stocks according to Validea's Book/Market Investor model based on the published strategy of Joseph Piotroski. This value-quant strategy screens for high book-to-market stocks, and then separates out financially sound firms by looking at a host of improving financial criteria.

MYLAN NV (MYL) is a mid-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 70% 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: Mylan N.V. is a global pharmaceutical company. The Company develops, licenses, manufactures, markets and distributes generic, brand name and over-the-counter (OTC) products in a range of dosage forms and therapeutic categories. It operates through three segments on a geographic basis, North America, Europe and Rest of World. The Company's Cold-EEZE family of brands includes OTC cold remedies sold as lozenges, gummies, oral sprays, caplets, QuickMelts and oral liquid dose forms in the United States. The North America segment primarily develops, manufactures, sells and distributes pharmaceutical products in tablet, capsule, injectable, transdermal patch, gel, nebulized and cream or ointment form. The Europe segment sells pharmaceuticals under their International Nonproprietary Name (INN), such as active pharmaceutical ingredient (API), in certain European countries. The Rest of World segment is primarily made up of its operations in India, Australia, Japan and New Zealand.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS FAIL
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS

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

AMAG PHARMACEUTICALS, INC. (AMAG) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 60% 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: AMAG Pharmaceuticals, Inc. is a pharmaceutical company. The Company's segment is the manufacture, development and commercialization of products and services for use in treating various conditions, with a focus on maternal health, anemia management and cancer supportive care. Its offerings focus on maternal health, anemia management and cancer supportive care, including its product, Makena (hydroxyprogesterone caproate injection); its product, Feraheme (ferumoxytol), for intravenous (IV) use, and MuGard Mucoadhesive Oral Wound Rinse. It is engaged in the development of Digoxin immune fab, a polyclonal antibody for the treatment of severe preeclampsia in pregnant women. Makena is a drug indicated to reduce the risk of preterm birth in women pregnant with a single baby having a history of singleton spontaneous preterm birth.

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.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: FAIL CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS FAIL CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS

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

ANGIODYNAMICS, INC. (ANGO) is a small-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Joseph Piotroski is 60% 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: AngioDynamics, Inc. designs, manufactures and sells a range of medical, surgical and diagnostic devices used by professional healthcare providers for vascular access, for the treatment of peripheral vascular disease and for use in oncology and surgical settings. The Company's devices are used in minimally invasive, image-guided procedures. The Company offers products within three product groupings: Vascular Interventions & Therapies, Vascular Access and Oncology. The Company's Vascular Interventions & Therapies products include Venous, Thrombus Management, as well as other core products. The Company's BioFlo products incorporate Endexo Technology into the manufacturing and design of its Vascular Access products. Its Oncology product offerings include its Microwave Ablation products, Radiofrequency Ablation (RFA) and its NanoKnife product lines. Through its subsidiary, Eximo Medical, Ltd., the Company operates 355 nanometers (nm) wavelength laser-technology platform.

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.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: FAIL RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: FAIL CHANGE IN RETURN ON ASSETS: FAIL CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS FAIL CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS FAIL
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: FAIL

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

TRIPLE-S MANAGEMENT CORP. (GTS) is a small-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Joseph Piotroski is 60% 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: Triple-S Management Corporation operates as a managed care company. The Company offers a range of managed care and related products in the commercial, Medicaid and Medicare markets. The Company's segments include Managed Care, Life Insurance, and Property and Casualty Insurance. The Managed Care segment is engaged in the sale of managed care products to the Commercial, Medicare and Medicaid market sectors. The Life Insurance segment offers life and accident and health insurance coverage, and annuity products. The premiums for this segment are mainly subscribed through an internal sales force and a network of independent brokers and agents. The insurance products of Property and Casualty Insurance segment includes commercial package, commercial auto, and personal package. The premiums for this segment are originated through a network of independent insurance agents and brokers.

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.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: FAIL RETURN ON ASSETS: FAIL RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: FAIL CHANGE IN RETURN ON ASSETS: FAIL CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS FAIL CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS FAIL CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: FAIL CHANGE IN ASSET TURNOVER: PASS

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

SENIOR HOUSING PROPERTIES TRUST (SNH) is a small-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Joseph Piotroski is 60% 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: Senior Housing Properties Trust is a real estate investment trust (REIT). The Company's segments include triple net senior living communities that provide short term and long term residential care and other services for residents; managed senior living communities that provide short term and long term residential care and other services for residents; properties leased to medical providers, medical related businesses, clinics and biotech laboratory tenants (MOBs), and all other, including certain properties that offer wellness, fitness and spa services to members. Properties in triple net senior living communities segment include leased independent living communities, assisted living communities and skilled nursing facilities. Properties in managed senior living communities segment include managed independent living communities and assisted living communities.

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.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: FAIL RETURN ON ASSETS: FAIL RETURN ON ASSETS: FAIL RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: FAIL CHANGE IN RETURN ON ASSETS: FAIL CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: FAIL CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS FAIL CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS FAIL CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS FAIL
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: FAIL CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: FAIL CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS

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

Since its inception, Validea's strategy based on Joseph Piotroski has returned 151.02% vs. 172.54% for the S&P 500. For more details on this strategy, click here

About Joseph Piotroski: Piotroski isn't your typical Wall Street big shot. In fact, he's not even a professional investor. He's a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago's Graduate School of Business, Piotroski published a groundbreaking paper in the Journal of Accounting Research entitled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers". In it, Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent average annual back-tested return from 1976 through 1996 -- more than double the S&P 500's gain during that time. Piotroski's findings were reported in major financial publiations like SmartMoney. Today, he teaches accounting at Stanford University's Graduate School of Business.

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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