Interested in healthcare stocks? Do you prefer stocks that analysts rate as 'Buy' or better? Do you look for companies with low debt? Do you prefer companies that can manage their long term debt? If the answer is yes, here are some interesting ideas to get you started.
The Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead the company toward substantial trouble.
The Long Term Debt/Equity Ratio is a variation of the traditional debt-to-equity ratio; this value computes the proportion of a company's long-term debt compared to its available capital. By using this ratio, investors can identify the amount of leverage utilized by a specific company and compare it to others to help analyze the company's risk exposure. Generally, companies that finance a greater portion of their capital via debt are considered riskier than those with lower leverage ratios.
We first looked for healthcare stocks. We then looked for businesses that analysts rate as "Buy" or "Strong Buy" (mean recommendation < 3). Next, we then screened for businesses that operate with little to no debt (D/E Ratio<.3). From here, we then looked for companies that have maintained a sound long term capital structure (Long Term D/E Ratio<.3). We did not screen out any market caps.
Do you think these stocks will offer healthy returns? Use our list to help with your own analysis.
Aegerion Pharmaceuticals, Inc. (AEGR)
|Industry:||Drug Manufacturers - Major|
Aegerion Pharmaceuticals, Inc. has a Analysts' Rating of 1.60 and Debt/Equity Ratio of 0.28 and Long Term Debt/Equity Ratio of 0.28. The short interest was 3.27% as of 05/16/2012. Aegerion Pharmaceuticals, Inc., a development stage biopharmaceutical company, engages in the development and commercialization of novel therapeutics to treat debilitating and fatal rare diseases. The company focuses on therapeutics to treat severe inherited lipid disorders. Lipids are naturally occurring molecules, such as cholesterol and triglycerides that are transported in the blood.
Affymax, Inc. (AFFY)
Affymax, Inc. has a Analysts' Rating of 1.60 and Debt/Equity Ratio of 0.09 and Long Term Debt/Equity Ratio of 0.08. The short interest was 12.19% as of 05/16/2012. Affymax, Inc., a biopharmaceutical company, engages in the development of drugs for the treatment of serious and life-threatening conditions. It develops peginesatide (Hematide), which has completed Phase III clinical trial for the treatment of anemia associated with chronic renal failure. Hematide is a synthetic peptide-based erythropoiesis stimulating agent designed to stimulate production of red blood cells.
ACADIA Pharmaceuticals, Inc. (ACAD)
ACADIA Pharmaceuticals, Inc. has a Analysts' Rating of 2.00 and Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00. The short interest was 4.92% as of 05/16/2012. ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on drug discovery and clinical development of small molecule drugs that address unmet medical needs in neurological and related central nervous system disorders. The company has a portfolio of four product candidates, including pimavanserin, which is in Phase III clinical development as a treatment for Parkinson's disease psychosis. It is also developing Alpha adrenergic agonists that are product candidates in Phase II for chronic pain; and Muscarinic agonist, a product candidate in Phase I for glaucoma in collaboration with Allergan, Inc.
Abaxis Inc. (ABAX)
Abaxis Inc. has a Analysts' Rating of 2.10 and Debt/Equity Ratio of 0.00 and Long Term Debt/Equity Ratio of 0.00. The short interest was 7.14% as of 05/16/2012. Abaxis, Inc. develops, manufactures, markets, and sells portable blood analysis systems for use in veterinary or human patient-care setting to provide blood constituent measurements for clinicians worldwide. The company offers point-of-care blood chemistry analyzer, which consists of a compact portable analyzer and a series of single-use plastic discs, called reagent discs, containing all the chemicals required to perform a panel of up to 14 tests on human patients and 13 tests on veterinary patients. It markets the blood analysis system under the Piccolo Xpress and Piccolo Classic names in the medical market; and under the VetScan VS2 and VetScan Classic names in the veterinary market.
Acorda Therapeutics, Inc. (ACOR)
Acorda Therapeutics, Inc. has a Analysts' Rating of 2.50 and Debt/Equity Ratio of 0.01 and Long Term Debt/Equity Ratio of 0.00. The short interest was 5.66% as of 05/16/2012. Acorda Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in the identification, development, and commercialization of novel therapies for multiple sclerosis (MS), spinal cord injury (SCI), and other central nervous system disorders primarily in the United States. Its marketed products include Ampyra (dalfampridine), a potassium channel blocker for improving walking in patients with MS; and Zanaflex Capsules and Zanaflex tablets (tizanidine hydrochloride), a short-acting drug for the management of spasticity. The company also markets products for the improvement of walking in adult patients with MS with walking disability under the Fampyra name internationally.
Achillion Pharmaceuticals, Inc. (ACHN)
Achillion Pharmaceuticals, Inc. has a Analysts' Rating of 1.80 and Debt/Equity Ratio of 0.01 and Long Term Debt/Equity Ratio of 0.01. The short interest was 36.29% as of 05/16/2012. Achillion Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes anti-infective drug therapies in the United States and internationally. It focuses on the development of antivirals for the treatment of chronic hepatitis C infection (HCV); and the development of antibacterials for the treatment of resistant bacterial infections. The company's drug candidates for treating chronic HCV infection comprise ACH-1625, a NS3 protease inhibitor that is in Phase IIa clinical trials; ACH-2684, a NS3 protease inhibitor, which is in Phase I clinical trials; ACH-2928, a NS5A inhibitor that is in Phase I clinical trials; and ACH-3102, a NS5A inhibitor, which is in Phase I clinical trials.
Company profiles were sourced from Finviz. Financial data was sourced from Yahoo Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.