Interested in healthcare stocks? Do you prefer investing in stocks that analysts rate as "strong buy?" Company liquidity is an important consideration in any stock analysis. Liquidity gives a company the ability to make big acquisitions if it sees investment opportunities, a cushion for future lulls in demand, and most importantly, it keeps a company's doors open. Are these the types of stocks that you're looking for? We ran a screen you could find useful.
The Current ratio is a liquidity ratio used to determine a company's financial health. The metric illustrates how easily a firm can pay back its short obligations all at once through current assets. A company that has a current ratio of one or less is generally a liquidity red flag. Now this doesn't mean the company will go bankrupt tomorrow, but it also doesn't bode well for the company, and may indicate that it could have an issue paying back upcoming obligations.
The Quick ratio measures a company's ability to use its cash or assets to extinguish its current liabilities immediately. Quick assets include assets that presumably can be converted to cash at close to their book values. A company with a Quick Ratio of less than 1 cannot currently pay back its current liabilities. The quick ratio is more conservative than the Current Ratio because it excludes inventory from current assets, since some companies have difficulty turning their inventory into cash. If short-term obligations need to be paid off immediately, sometimes the current ratio would overestimate a company's short-term financial strength. In general, the higher the ratio, the greater the company's liquidity (i.e., the better able to meet current obligations using liquid assets).
We first looked for healthcare stocks. We then looked for businesses that analysts rate as "Strong Buy" (mean recommendation < 2). Next, we then screened for businesses with a large amount of cash on hand (Current Ratio>2)(Quick Ratio>2). We did not screen out any market caps.
Do you think these stocks are undervalued and have room to trade higher? Use our list to help with your own analysis.
1) AtriCure, Inc. (ATRC)
|Industry:||Medical Instruments & Supplies|
AtriCure, Inc. has an Analysts' Rating of 1.50 and Current Ratio of 2.89 and Quick Ratio of 2.28. The short interest was 3.03% as of 05/04/2012. AtriCure, Inc., a medical device company, develops, manufactures, and sells cardiac surgical ablation systems designed to create precise lesions, or scars, in cardiac tissue. Its primary product line includes isolator synergy bipolar radio-frequency ablation clamps for open-heart procedures and minimally invasive procedures; ablation and sensing unit, a compact power generator that delivers bipolar radio-frequency (RF) energy; AtriCure switch box, a compact switch box providing the technology needed for the dual pulsing electrodes, and the ability to connect and toggle between multiple RF devices; isolator multifunctional pen, a disposable RF device enabling surgeons to toggle back and forth between temporary pacing, sensing, and stimulation and ablation; and coolrail linear ablation device, a disposable linear RF ablation device, which allows physicians to create an expanded cardiac ablation lesion set during minimally invasive procedures. The company also offers cryoablation system, which consists of various reusable and disposable devices, including the Frigitronics CCS-200 product line for cardiac ablation; and Cryo1, a disposable cryoablation device, as well as AtriClip system, which is designed to exclude the left atrial appendage by implanting the device during concomitant open surgical procedures from the outside of the heart.
2) BioTime, Inc. (BTX)
BioTime, Inc. has an Analysts' Rating of 1.00 and Current Ratio of 7.93 and Quick Ratio of 7.91. The short interest was 15.28% as of 05/04/2012. BioTime, Inc., a biotechnology company, focuses on regenerative medicine and blood plasma volume expanders. It primarily focuses on regenerative medicine, which refers to therapies based on human embryonic stem cell and induced pluripotent stem cell technology designed to rebuild cell and tissue function lost due to degenerative disease or injury. The company develops and markets research products in the field of stem cells and regenerative medicine.
3) BG Medicine, Inc. (BGMD)
|Industry:||Medical Laboratories & Research|
BG Medicine, Inc. has an Analysts' Rating of 1.30 and Current Ratio of 7.97 and Quick Ratio of 7.96. The short interest was 2.40% as of 05/04/2012. BG Medicine, Inc., a life sciences company, engages in the discovery, development, and commercialization of novel cardiovascular diagnostics to address unmet medical needs. The company markets the BGM Galectin-3, a diagnostic test for measuring galectin-3 levels in blood plasma or serum for use in patients with heart failure through regional and national laboratory testing facilities and directly to hospitals and clinics in the United States, as well as through distributors in certain countries in Europe. It is also developing CardioSCORE, a cardiovascular diagnostic test designed to identify individuals at high risk for near term cardiovascular events, such as heart attack and stroke; and galectin-3 test for a second indication to identify individuals at risk for developing heart failure, such as patients who have suffered a heart attack, as well as patients suffering from hypertension or diabetes.
4) Antares Pharma Inc. (AIS)
|Industry:||Medical Instruments & Supplies|
Antares Pharma Inc. has an Analysts' Rating of 1.50 and Current Ratio of 3.62 and Quick Ratio of 3.53. The short interest was 12.15% as of 05/04/2012. Antares Pharma Inc., a pharmaceutical company, engages in the development and marketing of self-injection pharmaceutical products and technologies, and topical gel-based products. It offers Vision/Tjet reusable needle-free injectors that deliver precise medication doses through high-speed pressurized liquid penetration of the skin without a needle; Vibex disposable pressure assisted auto injector devices that are used for the controlled pressure delivery of drugs into the body utilizing a spring power source; disposable pen injection systems, which are needle-based devices designed to deliver multiple drugs by injection through needles from multi-dose drug cartridges; and Advanced Transdermal Delivery Gel System that penetrates the skin to deliver treatments. The company also provides Anturo, an oxybutynin gel product for the treatment of OAB; Elestrin, a transdermal estradiol gel for the treatment of moderate-to-severe vasomotor symptoms associated with menopause; and Nestragel, a contraceptive formulation product.
5) Anika Therapeutics Inc. (ANIK)
Anika Therapeutics Inc. has an Analysts' Rating of 1.00 and Current Ratio of 4.41 and Quick Ratio of 3.91. The short interest was 0.99% as of 05/04/2012. Anika Therapeutics, Inc., together with its subsidiaries, develops, manufactures, and commercializes therapeutic products for tissue protection, healing, and repair. Its products are based on hyaluronic acid, a naturally occurring biocompatible polymer found in the body. The company offers orthobiologics products for providing relief from the pain of osteoarthritis, and regenerating damaged tissue, such as cartilage defects; ORTHOVISC for the treatment of osteoarthritis of the knee and various joints; ORTHOVISC mini for the treatment of osteoarthritis in small joints; and MONOVISC, a single injection product used for the treatment of osteoarthritis in various joints.
6) Cardica Inc. (CRDC)
|Industry:||Medical Instruments & Supplies|
Cardica Inc. has an Analysts' Rating of 1.50 and Current Ratio of 3.26 and Quick Ratio of 3.07. The short interest was 0.21% as of 05/04/2012. Cardica, Inc. engages in the development of an endoscopic microcutter product line for use by thoracic, bariatric, colorectal, and general surgeons primarily in the United States and internationally. Its microcutter product line under development includes Microcutter XPRESS 30, a multi-fire endolinear microcutter device based on the company's proprietary staple-on-a-strip' technology; Microcutter XPRESS 45, a multi-fire endolinear microcutter device with a 45 millimeter staple line; Microcutter XCHANGE 30, a cartridge based microcutter device; Microcutter FLEXCHANGE 30, a cartridge based microcutter device with a flexible shaft to facilitate endoscopic procedures requiring cutting and stapling; and Microcutter XPRESS 60, a cutting and stapling device for the bariatric and thoracic surgery markets. The company also designs, manufactures, and markets automated anastomotic systems for use by cardiac surgeons to perform coronary bypass surgery.
*Company profiles were sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.