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Validea's Top Five Healthcare Stocks Based On Kenneth Fisher - 11/17/2019

The following are the top rated Healthcare stocks according to Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.

UNITED THERAPEUTICS CORPORATION (UTHR) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Kenneth Fisher is 68% 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: United Therapeutics Corporation is a biotechnology company. The Company is focused on the development and commercialization of products for the treatment of chronic and life-threatening conditions. The Company markets and sells four commercial therapies in the United States to treat pulmonary arterial hypertension (PAH): Remodulin (treprostinil) Injection; Tyvaso (treprostinil) Inhalation Solution (Tyvaso); Orenitram (treprostinil) Extended-Release Tablets (Orenitram); and Adcirca (tadalafil) Tablets (Adcirca). The Company markets and sells an oncology product in the United States, Unituxin (dinutuximab) Injection (Unituxin), which is approved for treatment of neuroblastoma. The Company is also engaged in early-stage research and development of a number of organ transplantation-related technologies.

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.

PRICE/SALES RATIO: FAIL
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS

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

AKEBIA THERAPEUTICS INC (AKBA) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Kenneth Fisher 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: Akebia Therapeutics, Inc. is a biopharmaceutical company. The Company focuses on the development and commercialization of therapeutics based on hypoxia-inducible factor (HIF) biology. The Company's lead product candidate, vadadustat, is indicated for the treatment of anemia in chronic kidney disease (CKD). It is involved in developing vadadustat as an oral therapy. The Company's vadadustat is a HIF-prolyl-hydroxylase (HIF-PH) inhibitor in Phase III development for the treatment of anemia of CKD. In addition to vadadustat, the Company is engaged in developing a HIF-based portfolio of product candidates that target serious diseases of unmet need. Its portfolio includes product candidates developed internally, such as AKB-6899, as well as in-licensed product candidates, including AKB-5169. AKB-5169 is a preclinical compound in development as an oral treatment for inflammatory bowel disease (IBD).

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.

PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL

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

OPKO HEALTH INC. (OPK) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Kenneth Fisher 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: OPKO Health, Inc. is a healthcare company. Its segments include Pharmaceutical, Diagnostics and Corporate. Pharmaceutical consists of the pharmaceutical operations in Chile, Mexico, Ireland, Israel and Spain and its pharmaceutical research and development operations. Diagnostics consists of the clinical laboratory operations in Bio-Reference Laboratories (Bio-Reference) and its point-of-care operations. Through Bio-Reference, it operates laboratory divisions, such as Bio-Reference, GenPath (Oncology), GenPath (Women's Health), GeneDx and Laboratorio Bueno Salud. As of December 31, 2016, it had one commercial stage pharmaceutical product and several pharmaceutical compounds and technologies in various stages of research and development for a range of indications and conditions, including Renal Products, Biologics, hGH-CTP, Factor VII, Oxyntomodulin, active pharmaceutical ingredients, Oligonucleotide Therapeutics, NK-1 Program, Asthma and chronic obstructive pulmonary disease.

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.

PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: FAIL LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: FAIL FREE CASH PER SHARE: FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL

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

AMAG PHARMACEUTICALS, INC. (AMAG) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Kenneth Fisher 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: 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.

PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: FAIL
PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: FAIL LONG-TERM EPS GROWTH RATE: FAIL LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: FAIL FREE CASH PER SHARE: FAIL FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL

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

BAYER AG (ADR) (BAYRY) is a large-cap value stock in the Major Drugs industry. The rating according to our strategy based on Kenneth Fisher 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: Bayer AG is a life science company. The Company's segments are Pharmaceuticals, Consumer Health, Crop Science and Animal Health. The Pharmaceuticals segment focuses on researching, developing and marketing prescription products and specialty therapeutics especially in the areas of cardiology, oncology, gynecology, hematology and ophthalmology, as well as radiopharmacology and others. The Consumer Health segment develops, produces and markets nonprescription over-the-counter products in the dermatology, dietary supplement, analgesic, gastrointestinal, cold, allergy, sinus and flu, foot care and sun protection categories, among others. The Crop Science segment researches, develops and markets crop protection solutions and seeds, and includes the subsidiary Monsanto. The Animal Health segment is engaged in the development, production and marketing of prescription and nonprescription veterinary 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.

PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: FAIL TOTAL DEBT/EQUITY RATIO: FAIL
PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: FAIL LONG-TERM EPS GROWTH RATE: FAIL LONG-TERM EPS GROWTH RATE: FAIL LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: FAIL FREE CASH PER SHARE: FAIL FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: PASS

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

Since its inception, Validea's strategy based on Kenneth Fisher has returned 396.12% vs. 213.90% for the S&P 500. For more details on this strategy, click here

About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.

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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