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Validea's Top Five Healthcare Stocks Based On Joseph Piotroski - 6/16/2019

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.

ACORDA THERAPEUTICS INC (ACOR) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 80% 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: Acorda Therapeutics, Inc. is a biopharmaceutical company. The Company focuses on developing therapies that restore function and improve the lives of people with neurological disorders. As of December 31, 2016, the Company marketed three United States Food and Drug Administration (FDA)-approved therapies, including Ampyra (dalfampridine) Extended Release Tablets, 10 milligram (mg), a treatment to improve walking in patients with multiple sclerosis (MS). The Company also markets Zanaflex Capsules and tablets, FDA-approved as short-acting drugs for the management of spasticity, and Qutenza, an FDA-approved dermal patch for the management of neuropathic pain associated with post-herpetic neuralgia, also known as post-shingles pain. The Company has a pipeline of neurological therapies addressing a range of disorders, including Parkinson's disease, migraine and MS. The Company's product candidate, CVT-301, is a self-administered inhaled formulation of levodopa.

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

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

ASSERTIO THERAPEUTICS INC (ASRT) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 80% 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: Assertio Therapeutics, Inc. is a specialty pharmaceutical company. The Company focuses on pain and other central nervous system (CNS) conditions. Its products include NUCYNTA ER (tapentadol extended release tablets), NUCYNTA IR (NUCYNTA) (tapentadol), Gralise (gabapentin), Cambia (diclofenac potassium for oral solution), Xartemis XR and Zipsor (diclofenac potassium). Its NUCYNTA ER (tapentadol extended release tablets) is a product for the management of pain severe enough to require daily long term opioid treatment, including neuropathic pain associated with diabetic peripheral neuropathy (DPN) in adults, and its NUCYNTA (tapentadol) is a product for the management of moderate to severe acute pain in adults. Its Gralise (gabapentin) is a once-daily product for the management of postherpetic neuralgia (PHN). Its Cambia (diclofenac potassium for oral solution) is a product for the acute treatment of migraine attacks.

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: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS
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 PASS CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: FAIL CHANGE IN ASSET TURNOVER: FAIL

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

LANNETT COMPANY, INC. (LCI) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 80% 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: Lannett Company, Inc. develops, manufactures, markets and distributes generic versions of brand pharmaceutical products. The Company manufactures and/or distributes prescription products with the exception of a small portfolio of over-the-counter products manufactured by its subsidiary, Silarx Pharmaceuticals, Inc. As of June 30, 2016, the Company's products included Acetazolamide Tablets; Butalbital, Acetaminophen and Caffeine Tablets; Butalbital, Aspirin and Caffeine Capsules; C-Topical Solution; Digoxin Tablets; Glycolax Rx; Isosorbide Mononitrate CR; Levothyroxine Sodium Tablets; Methylphenidate HCL CD; Methylphenidate ER; Nifedipine CR; Omeprazole DR; Oxbutynin ER; Pantoprazole DR; Pilocarpine HCl Tablets; Triamterene w/Hydrochlorothiazide Capsules, and Ursodiol Capsules. The Company has additional products under development, which are orally administered solid oral-dosage products (tablet/capsule) or oral solutions, nasal, topicals or parentarels, as well as other dosage forms.

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: PASS RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS 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 PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: FAIL CHANGE IN ASSET TURNOVER: FAIL CHANGE IN ASSET TURNOVER: PASS

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

MEDNAX INC (MD) is a mid-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Joseph Piotroski is 80% 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: MEDNAX, Inc. is a provider of physician services, including newborn, anesthesia, maternal-fetal, teleradiology, pediatric cardiology and other pediatric subspecialty care. As of November 26, 2018, the Company's national network consisted of over 4,225 physicians in all 50 states and Puerto Rico, primarily within hospital-based neonatal intensive care units (NICUs), to babies born prematurely or with medical complications. As of December 31, 2016, the Company had over 1,390 affiliated physicians providing anesthesia care to patients in connection with surgical and other procedures, as well as pain management. As of December 31, 2016, the Company had 270 affiliated physicians providing maternal-fetal and obstetrical medical care to expectant mothers experiencing complicated pregnancies primarily in areas where its affiliated neonatal physicians practice.

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: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS 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 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 PASS CHANGE IN LONG TERM DEBT/ASSETS PASS 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: PASS
CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: FAIL 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

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 BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS 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 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 PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS FAIL 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: PASS CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: FAIL CHANGE IN ASSET TURNOVER: FAIL CHANGE IN ASSET TURNOVER: PASS 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 137.72% vs. 152.15% 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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