Markets

Validea's Top Five Healthcare Stocks Based On Kenneth Fisher - 6/16/2019

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.

THE ENSIGN GROUP, INC. (ENSG) is a mid-cap growth stock in the Healthcare Facilities 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: Ensign Group, Inc., through its operating subsidiaries, provides healthcare services across the post-acute care continuum, as well as other ancillary businesses located in Arizona, California, Colorado, Idaho, Iowa, Kansas, Nebraska, Nevada, Oregon, South Carolina, Texas, Utah, Washington and Wisconsin. The Company's subsidiaries provide skilled nursing, assisted living, home health and hospice, and other ancillary services. Its segments include transitional and skilled services segment, which includes the operation of skilled nursing facilities; assisted and independent living services segment, which includes the operation of assisted and independent living facilities; home health and hospice services segment, which includes its home health, home care and hospice businesses, and all other segment, which includes mobile diagnostics and other ancillary operations. As of May 2, 2019, it operated in 254 healthcare facilities.

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

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

INCYTE CORPORATION (INCY) is a large-cap growth 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: Incyte Corporation is a biopharmaceutical company focused on the discovery, development and commercialization of therapeutics. Its portfolio includes compounds in various stages, ranging from preclinical to late-stage development, and commercialized products, such as JAKAFI (ruxolitinib) and ICLUSIG (ponatinib). JAKAFI (ruxolitinib) is indicated for the treatment of patients with intermediate or high risk myelofibrosis (MF) and for the treatment of patients with polycythemia vera (PV) having had an inadequate response to or are intolerant of hydroxyurea. As of December 31, 2016, the Food and Drug Administration had granted JAKAFI orphan drug status for MF, PV and essential thrombocythemia. The primary target for ICLUSIG is B Cell Receptor-ABL, an abnormal tyrosine kinase that is expressed in chronic myeloid leukemia and Philadelphia-chromosome positive acute lymphoblastic leukemia. The Company also has a portfolio of selective janus associated kinases 1 (JAK1) inhibitors.

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: PASS PRICE/SALES RATIO: FAIL
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: FAIL PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: 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

OPKO HEALTH INC. (OPK) is a small-cap growth 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: PASS PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: FAIL 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: PASS LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS FREE CASH PER SHARE: FAIL
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

NATUS MEDICAL INC (BABY) is a small-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Kenneth Fisher is 58% 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: Natus Medical Incorporated is a provider of newborn care and neurology healthcare products and services used for the screening, diagnosis, detection, treatment, monitoring and tracking of common medical ailments in newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, neuromuscular diseases and balance and mobility disorders. The Company's product offerings include computerized neurodiagnostic systems for audiology, neurology, polysomnography, and neonatology, as well as newborn care products, such as hearing screening systems, phototherapy devices for the treatment of newborn jaundice, head-cooling products for the treatment of brain injury in newborns, incubators to control the newborn's environment, and software systems for managing and tracking disorders and diseases for public health laboratories. The Company is organized into three strategic business units: Neurology, Newborn Care and Otometrics.

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: PASS PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: PASS PRICE/SALES RATIO: FAIL
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: FAIL 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: PASS LONG-TERM EPS GROWTH RATE: FAIL LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS FREE CASH PER SHARE: FAIL FREE CASH PER SHARE: 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: FAIL

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

ACORDA THERAPEUTICS INC (ACOR) is a small-cap growth 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: 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.

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

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 329.70% vs. 190.41% 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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