Are you looking for mid-sized companies that still have room to grow? Interested in healthcare companies? Do you prefer stocks that can bring in profits over the next year? Do you feel better knowing your favorite companies have enough cash to cover their operating expenses for a very long time? For ideas on where to look, we ran a screen you may be interested in.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 1-Year Expected EPS Growth Rate is an annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
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 mid cap healthcare stocks. We then screened for businesses that have high future earnings per share growth forecasts(1-year projected EPS Growth Rate>25%). We then looked for businesses that have strong liquidity (Current Ratio>2)(Quick Ratio>2).
Do you think these mid-cap stocks deserve to trade higher? Please use our list to assist with your own analysis.
1) Alkermes plc (ALKS)
Alkermes plc has a 1-Year Projected Earnings Per Share Growth Rate of 100.00% and Current Ratio of 3.80 and Quick Ratio of 3.36. The short interest was 5.68% as of 05/28/2012. Alkermes plc, an integrated biotechnology company, develops medicines that enhance patient outcomes. The company has a diversified portfolio of approximately 20 commercial drug products and a clinical pipeline of product candidates that address central nervous system (CNS) disorders, such as addiction, schizophrenia, and depression. It manufactures and commercializes VIVITROL for alcohol and opioid dependence; RISPERDAL CONSTA for schizophrenia and bipolar I disorder; INVEGA SUSTENNA for the treatment of schizophrenia; AMPYRA to improve walking in patients with multiple sclerosis; and BYDUREON for the treatment of type II diabetes.
2) Seattle Genetics Inc. (SGEN)
Seattle Genetics Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 37.00% and Current Ratio of 5.23 and Quick Ratio of 5.02. The short interest was 27.16% as of 05/28/2012. Seattle Genetics, Inc., a biotechnology company, focuses on the development and commercialization of monoclonal antibody-based therapies for cancer. Its product candidate, ADCETRISTM, has accelerated approval from the U.S.
3) Forest Laboratories Inc. (FRX)
|Industry:||Drug Manufacturers - Other|
Forest Laboratories Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 70.71% and Current Ratio of 3.86 and Quick Ratio of 3.54. The short interest was 6.58% as of 05/28/2012. Forest Laboratories, Inc. develops, manufactures, and sells branded forms of ethical drug products. Its principal products include Lexapro for the treatment of major depressive disorder in adults and adolescents, and generalized anxiety disorder in adults; Namenda for the treatment of moderate and severe Alzheimer's disease; Bystolic for the treatment of hypertension; Savella for the management of fibromyalgia; and Teflaro, a hospital-based injectable cephalosporin antibiotic for the treatment of adults with community-acquired bacterial pneumonia. The company is also developing various products, including Linaclotide that is in Phase III clinical trials for the treatment of constipation-predominant irritable bowel syndrome and chronic constipation; Aclidinium, which is in Phase III clinical trials for the treatment of chronic obstructive pulmonary disease (COPD); and Cariprazine that is in Phase III clinical trials for the treatment of schizophrenia, bipolar mania, and other psychiatric conditions.
4) BioMarin Pharmaceutical Inc. (BMRN)
BioMarin Pharmaceutical Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 48.60% and Current Ratio of 4.28 and Quick Ratio of 3.25. The short interest was 10.34% as of 05/28/2012. BioMarin Pharmaceutical Inc. develops and commercializes biopharmaceuticals for serious diseases and medical conditions in the United States, Europe, Latin America, and rest of the world. The company's commercial products include Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase enzyme used for the treatment of mucopolysaccharidosis (MPS) VI; Kuvan, a proprietary synthetic oral form of 6R-BH4 used to treat patients with phenylketonuria (PKU), a metabolic disease; Aldurazyme used for the treatment of mucopolysaccharidosis I, a genetic disease; and Firdapse used to treat Lambert Eaton Myasthenic Syndrome, an autoimmune disease. It develops GALNS, an enzyme replacement therapy for the treatment of MPS IVA, a lysosomal storage disorder; PEG-PAL, an enzyme substitution therapy that is under Phase II clinical trial to treat PKU; BMN-673, a Phase I/II clinical trial product for the treatment of cancer; BMN-701, an enzyme replacement therapy, which is under Phase I/II clinical trials for Pompe disease, a glycogen storage disorder; and BMN-111, a peptide therapeutic that is under Phase I clinical trial for the treatment of achondroplasia.
5) VIVUS Inc. (VVUS)
VIVUS Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 155.70% and Current Ratio of 25.92 and Quick Ratio of 25.70. The short interest was 15.25% as of 05/28/2012. VIVUS, Inc., a biopharmaceutical company, is developing therapies to address obesity, sleep apnea, diabetes, and male sexual health. Its lead investigational product, Qnexa, has completed Phase 3 clinical trials for the treatment of obesity. Qnexa is also in Phase 2 clinical development for the treatment of type 2 diabetes and obstructive sleep apnea.
6) Questcor Pharmaceuticals, Inc. (QCOR)
Questcor Pharmaceuticals, Inc. has a 1-Year Projected Earnings Per Share Growth Rate of 36.21% and Current Ratio of 4.28 and Quick Ratio of 4.20. The short interest was 25.46% as of 05/28/2012. Questcor Pharmaceuticals, Inc., a biopharmaceutical company, provides prescription drugs for the treatment of multiple sclerosis, nephrotic syndrome, and infantile spasms indications.
*Company profiles were sourced from Finviz. Financial data was sourced from Finviz and Google Finance.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.