Over the recent year the Dow Jones Index is up 8.36 percent, the S&P 500 gained 13.82 percent and the NASDAQ is 14.58 percent higher. My seven healthcare picks from last year performed in average 31.55 percent while the healthcare sector summarized a total gain of 25.7 percent. Below is a current screen of the seven picks with performance figures.
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| Performance Review Of The Healthcare Picks 2012 (Click to enlarge) |
The bad news for me is that I don't have invested in one of them. Now I try to make a similar screen with attractive price ratios. The only new restrictions are simple. I allow lower capitalized stocks (over USD 2 billion market capitalization) and introduce a new barrier in terms of earnings growth. I want mid-term (next five years) earnings per share growth of more than 5 percent. Thirteen companies remain.
Here are my favorite stocks:
Abbott Laboratories (NYSE:ABT) has a market capitalization of $102.74 billion. The company employs 91,000 people, generates revenue of $38.851 billion and has a net income of $4.728 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.795 billion. The EBITDA margin is 22.64 percent (the operating margin is 14.81 percent and the net profit margin 12.17 percent).
Financial Analysis: The total debt represents 25.57 percent of the company’s assets and the total debt in relation to the equity amounts to 63.07 percent. Due to the financial situation, a return on equity of 20.07 percent was realized. Twelve trailing months earnings per share reached a value of $4.11. Last fiscal year, the company paid $1.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.81, the P/S ratio is 2.64 and the P/B ratio is finally 4.18. The dividend yield amounts to 3.14 percent and the beta ratio has a value of 0.32.
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| Long-Term Stock History Chart Of Abbott Laboratories (ABT) |
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| Long-Term Dividends History of Abbott Laboratories (ABT) |
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| Long-Term Dividend Yield History of Abbott Laboratories (ABT) |
Herbalife (NYSE:HLF) has a market capitalization of $4.96 billion. The company employs 5,100 people, generates revenue of $3.454 billion and has a net income of $412.58 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $634.12 million. The EBITDA margin is 18.36 percent (the operating margin is 16.28 percent and the net profit margin 11.94 percent).
Financial Analysis: The total debt represents 14.08 percent of the company’s assets and the total debt in relation to the equity amounts to 36.35 percent. Due to the financial situation, a return on equity of 78.78 percent was realized. Twelve trailing months earnings per share reached a value of $3.88. Last fiscal year, the company paid $0.73 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.84, the P/S ratio is 1.44 and the P/B ratio is finally 9.50. The dividend yield amounts to 2.61 percent and the beta ratio has a value of 1.70.
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| Long-Term Stock History Chart Of Herbalife (HLF) |
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| Long-Term Dividends History of Herbalife (HLF) |
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| Long-Term Dividend Yield History of Herbalife (HLF) |
Teva Pharmaceuticals (NYSE:TEVA) has a market capitalization of $35.02 billion. The company employs 45,754 people, generates revenue of $18.312 billion and has a net income of $2.829 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.174 billion. The EBITDA margin is 22.79 percent (the operating margin is 16.98 percent and the net profit margin 15.45 percent).
Financial Analysis: The total debt represents 28.95 percent of the company’s assets and the total debt in relation to the equity amounts to 65.40 percent. Due to the financial situation, a return on equity of 12.50 percent was realized. Twelve trailing months earnings per share reached a value of $2.44. Last fiscal year, the company paid $0.95 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.52, the P/S ratio is 2.08 and the P/B ratio is finally 1.71. The dividend yield amounts to 2.55 percent and the beta ratio has a value of 0.36.
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| Long-Term Stock History Chart Of Teva Pharmaceuticals (TEVA) |
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| Long-Term Dividends History of Teva Pharmaceuticals (TEVA) |
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| Long-Term Dividend Yield History of Teva Pharmaceuticals (TEVA) |
Take a closer look at the full list of next year's best healthcare stock picks. The average P/E ratio amounts to 19.60
and forward P/E ratio is 16.84. The dividend yield has a value of 2.75 percent.
Price to book ratio is 3.46 and price to sales ratio 2.06. The operating margin
amounts to 15.16 percent. The average stock has a debt to equity ratio of 0.92.
Here is the full table with
some fundamentals (TTM):
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| Best Healthcare Picks For 2013 (Click to enlarge) |
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Related stock
ticker symbols:
ABT, STJ, HLF,
TEVA, SYK, TMO, UHS, LIFE, MD, CELG, JAZZ, UTHR, SLXP
Selected Articles:
* I am long HLF. I receive no
compensation to write about these specific stocks, sector or theme. I don't
plan to increase or decrease positions or obligations within the next 72 hours.
For the other stocks: I
have no positions in any stocks mentioned, and no plans to initiate any
positions within the next 72 hours. I receive no compensation to write about
any specific stock, sector or theme.
