I feel that in order to see substantial gains in the market, one must do substantial research to find stocks that are being sold at a true "value." A momentarily bad quarter and shifting market sentiment has pushed the market low, on some stocks more than on others. Most recently it seems Healthcare stocks have begun to recover very nicely, and I expect this to continue throughout the year.
Below, I have screened four stocks that I believe to be undervalued given their < 1 PEG. Not only are they undervalued, but these stocks are experiencing huge EPS growth. I believe these stocks will see huge gains throughout the year and years to come.
Anika Therapeutics, Inc. (ANIK) develops, manufactures and commercializes therapeutic products for tissue protection, healing and repair. These products are based on hyaluronic acid (HA), a naturally occurring, biocompatible polymer found throughout the body. The current market price is $13.26 with a one-year analyst price target of $21. This represents a 58.37% upside potential. Not only is the company's days sales in receivables at its five-year high, but also its net margin has been higher than its Industry average for each of the past five years.
I believe this stock is highly undervalued given its PEG of 0.61. Not only does the company have an extremely low PEG, but EPS has been up 94.73% this year and expected to rise another 27.27% next year. This company's net income growth is driven by increased revenue, higher gross margin, and lower selling, general, and administrative expenses. Revenue increased 22% the first quarter of the year and is expected to continue. Operating income for the first quarter increased to $3.1M from $557,000 for the same period in 2011. Overall this stock is a great addition to your portfolio.
| Index | - | P/E | 18.16 | EPS | 0.73 | Insider Own | 4.30% | Shs Outstand | 13.76M | Perf Week | -4.05% |
| Market Cap | 182.46M | Forward P/E | 13.53 | EPS next Y | 0.98 | Insider Trans | 11.28% | Shs Float | 11.17M | Perf Month | -1.12% |
| Income | 10.05M | PEG | 0.61 | EPS next Q | 0.18 | Inst Own | 35.44% | Short Float | 2.15% | Perf Quarter | 6.85% |
| Sales | 67.40M | P/S | 2.71 | EPS this Y | 94.73% | Inst Trans | 4.05% | Short Ratio | 1.57 | Perf Half Y | 46.36% |
| Book/sh | 7.13 | P/B | 1.86 | EPS next Y | 27.27% | ROA | 7.68% | Target Price | 21.00 | Perf Year | 89.97% |
| Cash/sh | 2.47 | P/C | 5.37 | EPS next 5Y | 30.00% | ROE | 10.82% | 52W Range | 5.24 - 17.70 | Perf YTD | 35.31% |
| Dividend | - | P/FCF | 32.29 | EPS past 5Y | 8.33% | ROI | 8.70% | 52W High | -25.08% | Beta | 1.46 |
| Dividend % | - | Quick Ratio | 4.26 | Sales past 5Y | 19.27% | Gross Margin | 59.06% | 52W Low | 153.05% | ATR | 0.65 |
| Employees | 129 | Current Ratio | 4.97 | Sales Q/Q | 22.35% | Oper. Margin | 24.44% | RSI (14) | 42.99 | Volatility | 4.65% 4.91% |
| Optionable | No | Debt/Eq | 0.11 | EPS Q/Q | 475.04% | Profit Margin | 14.92% | Rel Volume | 11.40 | Prev Close | 13.40 |
| Shortable | Yes | LT Debt/Eq | 0.09 | Earnings | May 03 AMC | Payout | 0.00% | Avg Volume | 153.19K | Price | 13.26 |
| Recom | 1.00 | SMA20 | -2.63% | SMA50 | -8.85% | SMA200 | 28.56% | Volume | 1,745,697 | Change | -1.04% |
Cumberland Pharmaceuticals Inc. (CPIX) is specialty pharmaceutical company focused on the acquisition, development and commercialization of branded prescription products. Cumberland is focused on acquiring rights to, developing and commercializing prescription products for the hospital care and gastroenterology markets. The current market price is $6.05 with a one-year analyst price target of $7. This represents a 15.70% upside potential. CPIX has a PEG of 0.78 with an EPS growth rate of 135.75% this year with another 42.86% growth rate expected next year.
The company's gross margin has been higher than its Industry average for each of the past five years. The stock is up 12.75% this year with a current ratio of 14.01 and 0.06 debt to equity. Overall this stock is a good value pick, the only thing to pay close attention to is the fact that it recently accused generic-drug makers Perrigo Co. (PRGO) and InnoPharma Inc. of infringing its patent 8,148,356., which covers the acetaminophen overdose treatment Acethetadote. The outcome of this court case could potentially affect the price of the stock.
| Index | - | P/E | 23.27 | EPS | 0.26 | Insider Own | 34.86% | Shs Outstand | 19.77M | Perf Week | -4.12% |
| Market Cap | 119.61M | Forward P/E | 12.10 | EPS next Y | 0.50 | Insider Trans | 0.29% | Shs Float | 12.28M | Perf Month | 0.17% |
| Income | 5.36M | PEG | 0.78 | EPS next Q | 0.07 | Inst Own | 31.41% | Short Float | 9.34% | Perf Quarter | -19.87% |
| Sales | 50.73M | P/S | 2.36 | EPS this Y | 135.75% | Inst Trans | 2.64% | Short Ratio | 31.25 | Perf Half Y | 5.77% |
| Book/sh | 4.12 | P/B | 1.47 | EPS next Y | 42.86% | ROA | 5.73% | Target Price | 8.00 | Perf Year | 14.37% |
| Cash/sh | 3.62 | P/C | 1.67 | EPS next 5Y | 30.00% | ROE | 6.68% | 52W Range | 5.00 - 8.02 | Perf YTD | 12.45% |
| Dividend | - | P/FCF | 12.27 | EPS past 5Y | 0.54% | ROI | 6.22% | 52W High | -24.56% | Beta | - |
| Dividend % | - | Quick Ratio | 13.03 | Sales past 5Y | 23.48% | Gross Margin | 89.15% | 52W Low | 21.00% | ATR | 0.27 |
| Employees | 138 | Current Ratio | 14.01 | Sales Q/Q | -3.85% | Oper. Margin | 17.91% | RSI (14) | 38.59 | Volatility | 4.14% 4.44% |
| Optionable | Yes | Debt/Eq | 0.06 | EPS Q/Q | -39.73% | Profit Margin | 10.50% | Rel Volume | 42.53 | Prev Close | 6.07 |
| Shortable | Yes | LT Debt/Eq | 0.06 | Earnings | May 03 AMC | Payout | 0.00% | Avg Volume | 36.69K | Price | 6.05 |
| Recom | 2.00 | SMA20 | -1.83% | SMA50 | -10.21% | SMA200 | -5.71% | Volume | 1,560,309 | Change | -0.33% |
POZEN Inc. (POZN) is a pharmaceutical company focused on transforming medicine. The company has developed Treximet in collaboration with GlaxoSmithKline (GSK). On April 30, 2010, the Food and Drug Association approved VIMOVO for the relief of the signs and symptoms of osteoarthritis [OA], rheumatoid arthritis [RA]and ankylosing spondylitis [AS] and to decrease the risk of developing gastric ulcers in patients at risk of developing NSAID-associated gastric ulcers. The current market price is $6.26, with a one-year analyst price target of $9. This represents a 43.77% upside potential.
Over the past four quarters, the company has reported two positive (>2%) and two negative (<-2%) surprise earnings. The average surprise for this time period has been -3.4%. The company's gross margin has been higher than its Industry average for each of the past five years. EPS history over the past five years has been 74.08% and is expected to stay at an average of 30% over the next five years. The company has a very strong balance sheet, given no debt, and a profit margin of 47.3 %. This company has an extremely low PEG of 0.19, and I would expect this price to continue to rise substantially.
| Index | - | P/E | 4.78 | EPS | 1.31 | Insider Own | 1.96% | Shs Outstand | 29.92M | Perf Week | -13.77% |
| Market Cap | 187.30M | Forward P/E | 89.43 | EPS next Y | 0.07 | Insider Trans | 37.52% | Shs Float | 26.59M | Perf Month | -8.61% |
| Income | 39.63M | PEG | 0.16 | EPS next Q | -0.25 | Inst Own | 50.48% | Short Float | 19.40% | Perf Quarter | 17.45% |
| Sales | 83.78M | P/S | 2.24 | EPS this Y | 83.21% | Inst Trans | 3.57% | Short Ratio | 7.98 | Perf Half Y | 58.08% |
| Book/sh | 3.26 | P/B | 1.92 | EPS next Y | 107.80% | ROA | 47.90% | Target Price | 9.00 | Perf Year | 39.42% |
| Cash/sh | 3.37 | P/C | 1.86 | EPS next 5Y | 30.00% | ROE | 51.73% | 52W Range | 2.15 - 8.12 | Perf YTD | 58.48% |
| Dividend | - | P/FCF | 4.16 | EPS past 5Y | 74.08% | ROI | 51.19% | 52W High | -22.91% | Beta | 1.39 |
| Dividend % | - | Quick Ratio | - | Sales past 5Y | 45.10% | Gross Margin | - | 52W Low | 191.16% | ATR | 0.41 |
| Employees | 32 | Current Ratio | 19.49 | Sales Q/Q | -71.11% | Oper. Margin | 47.11% | RSI (14) | 39.45 | Volatility | 4.97% 4.97% |
| Optionable | Yes | Debt/Eq | 0.00 | EPS Q/Q | -47.29% | Profit Margin | 47.30% | Rel Volume | 0.41 | Prev Close | 6.10 |
| Shortable | Yes | LT Debt/Eq | 0.00 | Earnings | May 01 BMO | Payout | 0.00% | Avg Volume | 646.17K | Price | 6.26 |
| Recom | 2.30 | SMA20 | -9.52% | SMA50 | -11.67% | SMA200 | 35.21% | Volume | 265,033 | Change | 2.62% |
Jazz Pharmaceuticals plc, formerly (JAZZ) is a specialty biopharmaceutical company. The company's marketed products include Xyrem (sodium oxybate oral solution), which is the product approved by the United States Food and Drug Administration for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy and Luvox CR (fluvoxamine maleate) marketed for the treatment of obsessive compulsive disorder. The current market price is $45.71 with a one-year analyst price target of $62.78. This represents a 37.34% upside potential.
Over the past three years, the company has reported three positive (>2%) surprises and one in-line (within 2%) surprise. The average surprise for this time period has been 4.8%. Most recently on 05/08/12, the company reported quarterly earnings of 0.91 per share, a positive surprise of 8.1% above the consensus 0.84. JAZZ's current forward PEG of 0.3 represents an 84% discount to its Diversified Pharmaceuticals Industry average and based on trailing P/E trades at a 39% discount. JAZZ is currently enjoying a five-year EPS growth rate of 168.09% and expects its earnings to grow another 25.65%. This company also boasts zero long-term debt / equity. I believe this company will continue to rise throughout the year and is a must have for any portfolio.
| Index | - | P/E | 17.12 | EPS | 2.67 | Insider Own | 2.59% | Shs Outstand | 56.73M | Perf Week | 2.83% |
| Market Cap | 2.59B | Forward P/E | 8.09 | EPS next Y | 5.65 | Insider Trans | 110.11% | Shs Float | 55.43M | Perf Month | 4.22% |
| Income | 130.84M | PEG | 0.67 | EPS next Q | 1.05 | Inst Own | 92.20% | Short Float | 5.52% | Perf Quarter | -5.11% |
| Sales | 329.81M | P/S | 7.86 | EPS this Y | 221.11% | Inst Trans | 0.85% | Short Ratio | 3.48 | Perf Half Y | 21.73% |
| Book/sh | 13.78 | P/B | 3.32 | EPS next Y | 22.56% | ROA | 24.93% | Target Price | 63.13 | Perf Year | 42.84% |
| Cash/sh | 4.30 | P/C | 10.62 | EPS next 5Y | 25.65% | ROE | 31.08% | 52W Range | 30.14 - 54.50 | Perf YTD | 18.33% |
| Dividend | - | P/FCF | 17.29 | EPS past 5Y | 168.09% | ROI | 29.62% | 52W High | -16.13% | Beta | 2.08 |
| Dividend % | - | Quick Ratio | 2.97 | Sales past 5Y | 43.43% | Gross Margin | 93.24% | 52W Low | 51.66% | ATR | 1.67 |
| Employees | 431 | Current Ratio | 3.13 | Sales Q/Q | 113.07% | Oper. Margin | 41.59% | RSI (14) | 55.86 | Volatility | 3.26% 3.84% |
| Optionable | Yes | Debt/Eq | 0.00 | EPS Q/Q | -0.23% | Profit Margin | 39.67% | Rel Volume | 3.86 | Prev Close | 45.06 |
| Shortable | Yes | LT Debt/Eq | 0.00 | Earnings | May 08 | Payout | 0.00% | Avg Volume | 879.60K | Price | 45.71 |
| Recom | 1.50 | SMA20 | 4.16% | SMA50 | 0.12% | SMA200 | 3.93% | Volume | 3,393,624 | Change | 1.44% |
