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Validea's Top Five Healthcare Stocks Based On Joseph Piotroski - 7/19/2020

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.

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

Detailed Analysis of ANGIODYNAMICS, INC.

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BROOKDALE SENIOR LIVING, INC. (BKD) 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: Brookdale Senior Living Inc. operates senior living communities in the United States. The Company operates independent living, assisted living and dementia-care communities, and continuing care retirement centers (CCRCs). It operates through five segments: Retirement Centers; Assisted Living; CCRCs-Rental; Brookdale Ancillary Services and Management Services. The Retirement Centers segment includes owned or leased communities for middle to upper income seniors. The Assisted Living segment includes owned or leased communities that offer housing and round the clock assistance with activities of daily life to mid-acuity frail and elderly residents. The CCRCs-Rental segment includes leased communities that offer living arrangements to accommodate physical ability and health. The Brookdale Ancillary Services segment includes outpatient therapy, home health and hospice services, as well as education and wellness programs. The Management Services segment includes communities operated by it.

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

Detailed Analysis of BROOKDALE SENIOR LIVING, INC.

Full Guru Analysis for BKD>

Full Factor Report for BKD>

MALLINCKRODT PLC (MNK) is a small-cap value stock in the Major 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: Mallinckrodt public limited company develops, manufactures, markets and distributes branded and generic specialty pharmaceutical products and therapies. The Company focuses on various therapeutic areas, such as autoimmune and rare disease specialty areas, including neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care respiratory therapies; analgesics and hemostasis products, and central nervous system drugs. Its segments include Specialty Brands and Specialty Generics. The Specialty Brands segment produces and markets branded pharmaceutical products and therapies. The Specialty Generics segment produces and markets specialty generic pharmaceuticals and active pharmaceutical ingredient (API) consisting of biologics, medicinal opioids, synthetic controlled substances, acetaminophen and other active ingredients. Its product portfolio includes Acthar, Inomax, Ofirmev, Therakos immunotherapy, Hemostasis products and StrataGraft.

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

Detailed Analysis of MALLINCKRODT PLC

Full Guru Analysis for MNK>

Full Factor Report for MNK>

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 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: 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/ASSETSPASS
CHANGE IN CURRENT RATIO:FAIL
CHANGE IN SHARES OUTSTANDING:FAIL
CHANGE IN GROSS MARGIN:FAIL
CHANGE IN ASSET TURNOVER:PASS

Detailed Analysis of MYLAN NV

Full Guru Analysis for MYL>

Full Factor Report for MYL>

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 50% 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
RETURN ON ASSETS:PASS
CHANGE IN RETURN ON ASSETS:PASS
CASH FLOW FROM OPERATIONS:FAIL
CASH COMPARED TO NET INCOME:FAIL
CHANGE IN LONG TERM DEBT/ASSETSPASS
CHANGE IN CURRENT RATIO:FAIL
CHANGE IN SHARES OUTSTANDING:FAIL
CHANGE IN GROSS MARGIN:FAIL
CHANGE IN ASSET TURNOVER:PASS

Detailed Analysis of TRIPLE-S MANAGEMENT CORP.

Full Guru Analysis for GTS>

Full Factor Report for GTS>

More details on Validea's Joseph Piotroski strategy

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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