Interested in the healthcare sector but don’t know where to start? Here are some ideas you may find interesting.
We ran a screen on the healthcare sector for high-growth stocks, with projected 5-year EPS growth over 20%. We then screened these stocks for those seeing the highest net buying from institutional investors over the current quarter.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.
Do you think these stocks will outperform like hedge funds expect? Use this list as a starting point for your own analysis.
List sorted by net institutional purchases as a percent of share float.
1. Ventrus Biosciences Inc. (VTUS): A development stage specialty pharmaceutical company, focuses on the development and commercialization of late-stage prescription drugs for gastrointestinal disorders primarily hemorrhoids, anal fissures, and fecal incontinence. Market cap of $103.91M. Analyst projected EPS growth over the next 5 years at 23.0%. Net institutional shares purchased over the current quarter at 3.0M, which is 29.76% of the company's 10.08M share float.
2. ISTA Pharmaceuticals Inc. (ISTA): Develops, and markets remedies for diseases and conditions of the eye in the United States. Market cap of $167.66M. Analyst projected EPS growth over the next 5 years at 25.0%. Net institutional shares purchased over the current quarter at 8.4M, which is 27.84% of the company's 30.17M share float. The stock has lost 7.97% over the last year.
3. GenMark Diagnostics, Inc. (GNMK): Operates as a molecular diagnostics company primarily in the United States. Market cap of $101.12M. Analyst projected EPS growth over the next 5 years at 30.0%. Net institutional shares purchased over the current quarter at 4.4M, which is 27.24% of the company's 16.15M share float. The stock has performed poorly over the last month, losing 13.64%.
4. Xenoport, Inc. (XNPT): Focuses on developing and commercializing internally discovered product candidates that utilize the body's natural nutrient transport mechanisms to enhance the therapeutic benefits of drugs. Market cap of $170.51M. Analyst projected EPS growth over the next 5 years at 25.0%. Net institutional shares purchased over the current quarter at 7.9M, which is 24.74% of the company's 31.93M share float. The stock is a short squeeze candidate, with a short float at 8.44% (equivalent to 8.8 days of average volume). The stock has performed poorly over the last month, losing 12.39%.
5. Zogenix, Inc. (ZGNX): Engages in the development and commercialization of products for the treatment of central nervous system disorders and pain. Market cap of $61.24M. Analyst projected EPS growth over the next 5 years at 25.0%. Net institutional shares purchased over the current quarter at 9.5M, which is 24.57% of the company's 38.67M share float. It's been a rough couple of days for the stock, losing 10% over the last week.
6. Amyris Biotechnologies Inc. (AMRS): An integrated renewable products company, offers renewable compounds for a variety of markets. Market cap of $542.04M. Analyst projected EPS growth over the next 5 years at 21.0%. Net institutional shares purchased over the current quarter at 4.1M, which is 23.77% of the company's 17.25M share float. The stock is a short squeeze candidate, with a short float at 12.88% (equivalent to 16.52 days of average volume). The stock has performed poorly over the last month, losing 34.04%.
7. Endologix Inc. (ELGX): Develops, manufactures, markets, and sells minimally invasive treatments for aortic disorders. Market cap of $632.31M. Analyst projected EPS growth over the next 5 years at 71.40%. Net institutional shares purchased over the current quarter at 6.8M, which is 13.64% of the company's 49.84M share float. The stock is a short squeeze candidate, with a short float at 7.14% (equivalent to 5.4 days of average volume). The stock has gained 84.68% over the last year.
8. Cardiovascular Systems Inc. (CSII): Focuses on developing and commercializing interventional treatment systems for vascular disease. Market cap of $153.93M. Analyst projected EPS growth over the next 5 years at 22.50%. Net institutional shares purchased over the current quarter at 1.9M, which is 13.27% of the company's 14.32M share float. The stock has had a good month, gaining 24.87%.
9. Uroplasty Inc. (UPI): Engages in the development, manufacture, and marketing of products for the treatment of voiding dysfunctions. Market cap of $88.23M. Analyst projected EPS growth over the next 5 years at 30.0%. Net institutional shares purchased over the current quarter at 2.1M, which is 13.27% of the company's 15.82M share float. The stock is a short squeeze candidate, with a short float at 11.43% (equivalent to 19.38 days of average volume). It's been a rough couple of days for the stock, losing 8.23% over the last week.
10. Salix Pharmaceuticals Ltd. (SLXP): Develops, and commercializes prescription drugs for the treatment of gastrointestinal disorders in the United States. Market cap of $2.0B. Analyst projected EPS growth over the next 5 years at 22.55%. Net institutional shares purchased over the current quarter at 6.6M, which is 12.22% of the company's 54.03M share float. The stock is a short squeeze candidate, with a short float at 11.29% (equivalent to 6.75 days of average volume). The stock has lost 18.08% over the last year.
11. Idenix Pharmaceuticals Inc. (IDIX): Engages in the discovery and development of drugs for the treatment of human viral and other infectious diseases in the United States and Europe. Market cap of $672.09M. Analyst projected EPS growth over the next 5 years at 29.0%. Net institutional shares purchased over the current quarter at 6.9M, which is 11.43% of the company's 60.35M share float. The stock is a short squeeze candidate, with a short float at 7.44% (equivalent to 6.96 days of average volume). The stock has had a couple of great days, gaining 9.39% over the last week.
12. LeMaitre Vascular, Inc. (LMAT): Develops, manufactures, and markets vascular devices for the treatment of peripheral vascular disease worldwide. Market cap of $85.72M. Analyst projected EPS growth over the next 5 years at 22.0%. Net institutional shares purchased over the current quarter at 946.1K, which is 11.29% of the company's 8.38M share float. The stock has lost 13.32% over the last year.
13. Akorn, Inc. (AKRX): Engages in the manufacture and marketing of diagnostic and therapeutic pharmaceutical products, hospital drugs, and injectable pharmaceuticals in the United States and internationally. Market cap of $862.63M. Analyst projected EPS growth over the next 5 years at 28.0%. Net institutional shares purchased over the current quarter at 7.6M, which is 11.24% of the company's 67.60M share float. The stock has gained 80.4% over the last year.
14. Echo Therapeutics, Inc. (ECTE): Operates as a medical device and specialty pharmaceutical company in the United States. Market cap of $85.33M. Analyst projected EPS growth over the next 5 years at 40.0%. Net institutional shares purchased over the current quarter at 2.3M, which is 10.25% of the company's 22.44M share float. The stock is currently stuck in a downtrend, trading 9.24% below its SMA20, 18.76% below its SMA50, and 32.42% below its SMA200. It's been a rough couple of days for the stock, losing 5.79% over the last week.
15. CardioNet, Inc. (BEAT): Provides ambulatory, continuous, and real-time outpatient management solutions for monitoring relevant and timely clinical information regarding an individual's health in the United States. Market cap of $58.36M. Analyst projected EPS growth over the next 5 years at 35.0%. Net institutional shares purchased over the current quarter at 1.9M, which is 9.41% of the company's 20.20M share float. It's been a rough couple of days for the stock, losing 11.52% over the last week.
16. DepoMed Inc. (DEPO): Develops and commercializes pharmaceutical products based on its proprietary oral drug delivery technologies in the United States. Market cap of $265.92M. Analyst projected EPS growth over the next 5 years at 30.0%. Net institutional shares purchased over the current quarter at 4.0M, which is 8.64% of the company's 46.32M share float. The stock is a short squeeze candidate, with a short float at 8.66% (equivalent to 6.41 days of average volume). The stock has had a couple of great days, gaining 8.84% over the last week.
17. Neurocrine Biosciences Inc. (NBIX): Engages in the discovery, development, and commercialization of drugs for the treatment of neurological and endocrine-related diseases and disorders in the United States. Market cap of $359.74M. Analyst projected EPS growth over the next 5 years at 69.0%. Net institutional shares purchased over the current quarter at 3.9M, which is 8.54% of the company's 45.65M share float. It's been a rough couple of days for the stock, losing 6.73% over the last week.
*Data from 11/16. Institutional data sourced from Fidelity, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
