Seeking Alpha
What is your profession? ×
Long/short equity, contrarian
Profile| Send Message|
( followers)

Usually, a high P/E is an indicator that investors and traders anticipate higher earnings growth in the future, but P/E ratios aren't the greatest of indicators in and of themselves. It is wise to compare the P/E ratio of a stock to other names in the same sector/industry, and the stock's own P/E history. I have compiled a short list of stocks that have high valuations and unusually high P/E ratios. It showcases, with links, the products, pipelines, services and R&D each respective company has to offer.

1. Exelixis, Inc. (NASDAQ:EXEL) - P/E Ratio: 157.67

Exelixis is a biotechnology company committed to developing small molecule therapies for the treatment of cancer. The Company is focusing its resources and development efforts on cabozantinib (XL184). It also has a portfolio of other compounds and out-licenses product candidates to GlaxoSmithKline (NYSE:GSK), Sanofi (NYSE:SNY), Roche (OTCQX:RHHBY), Bristol Myers Squibb (NYSE:BMY) and Diiachi Sankyo (OTCPK:DSKYF). Its stock currently trades around $4.75, or 63% below its 52 week high.

(Click to enlarge)

EXEL Out-Licensed

EXEL Compounds
(Click to enlarge)

2. Lannett Company, Inc. (NYSE:LCI) - P/E Ratio: 219.1

Lannett develops, manufactures, markets and distributes generic versions of branded pharmaceutical products, such as cocaine and morphine sulphate. Its stock currently trades around $4.40, or 26% below its 52 week high.

LCI Data
(Click to enlarge)

LCI Products
(Click to enlarge)

3. Allied Healthcare Products, Inc. (NASDAQ:AHPI) - P/E Ratio: 334

Allied Healthcare is a company that manufactures a range of respiratory products used in the healthcare industry in a range of hospital and alternate site settings, including sub-acute care facilities, home health care and emergency medical care. Its stock currently trades around $3.30, or 43% below its 52 week high.

(Click to enlarge)

AHPI Products
(Click to enlarge)

4. Santarus, Inc. (NASDAQ:SNTS) - P/E Ratio: 333

Santarus is a specialty biopharmaceutical company focused on acquiring, developing and commercializing products that address the needs of patients treated by physician specialists. Its stock currently trades around $3.30, or 11% below its 52 week high.

(Click to enlarge)

SNTA Pipeline
(Click to enlarge)

5. Conmed Healthcare Management, Inc. (NASDAQ:CNMD) - P/E Ratio: 54.8

Conmed Healthcare is a company that provides healthcare services to county and municipal detention centers across the United States and a range of healthcare services for inmates in county and municipal facilities under contract with the counties served. Its stock currently trades around $2.70, or 31% below its 52 week high.

(Click to enlarge)

Conmed Service
(Click to enlarge)

6. Columbia Laboratories, Inc. (CBRX) - P/E Ratio: 31.38

Columbia Laboratories is a company that is engaged in the business of developing, manufacturing and selling pharmaceutical products that utilize its bioadhesive drug delivery technologies to treat various medical conditions. Its stock currently trades around $2.50, or 42% below its 52 week high.

(Click to enlarge)

(Click to enlarge)

7. Alpha Pro Tech, Ltd. (NYSEMKT:APT) - P/E Ratio: 39.33

Alpha Pro Tech is a company that develops, manufactures and markets a line of disposable protective apparel and infection control products for the cleanroom, industrial, pharmaceutical, medical and dental markets. Its stock currently trades around $1.20, or 37% below its 52 week high.

APT Data
(Click to enlarge)

(Click to enlarge)

8. Dynatronics Corporation (NASDAQ:DYNT) - P/E Ratio: 33.5

Dynatronics is a company that manufactures and distributes a range of medical equipment for physical medicine applications, including therapy devices, medical supplies and soft goods, treatment tables and rehabilitation equipment. Its stock currently trades around $0.67, or 69% below its 52 week high.

(Click to enlarge)

DYNT Products
(Click to enlarge)

This article is in no way an endorsement of any of the above listed stocks and is simply intended to draw attention to the names so that you may perform your own research. Many of them are thinly traded and have notable downside risk. Again, it would be wise not to base an investment decision on a P/E ratio alone but, through your own due diligence, some of you may find some of them to be interesting long-term spec plays to add to your portfolios. Some of you may find cause to short some of them. Good luck, whichever you choose (or not choose).

Disclosure: I am long EXEL.