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One month ago we wrote about a list of high-growth healthcare stocks that passed DuPont analysis for strong sources of profitability. Today we ran a back test on this list to see how it has done since then, and the list has outperformed the S&P 500 (NYSEARCA:SPY) by almost 5% over the last month!

Here is the graph of the list index compared with the S&P 500 over the last month, and the price data we used to construct this graph:

Because of the success of this list, we ran the same screen again and came up with some new names along with some of the same from a month ago.

We began by screening the healthcare sector for stocks with high growth projections, with 5-year projected EPS growth rates above 15%.

Then to analyze these companies' profitability, we ran DuPont analysis on the names. DuPont analyzes profitability by breaking up return on equity (net income/equity) into three components:

ROE

= (Net Profit/Equity)

= (Net profit/Sales)*(Sales/Assets)*(Assets/Equity)

= (Net Profit margin)*(Asset turnover)*(Leverage ratio)

Because increases in net margin and asset turnover are considered good things, DuPont focuses on companies with these positive characteristics: Increasing ROE along with,

•Decreasing leverage, (i.e. decreasing Asset/Equity ratio)

•Improving asset use efficiency (i.e. increasing Sales/Assets ratio) and improving net profit margin (i.e. increasing Net Income/Sales ratio)

Those companies that pass DuPont are seeing positive trends in the sources of their increasing profitability, which adds further weight to the idea that these names are profitable.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Tool provided by Kapitall (kapitall.com).

Do you think this list will see success again over the next month? Use this list as a starting point for your own analysis.

List sorted by 5-year projected EPS growth.

1. Questcor Pharmaceuticals, Inc. (NASDAQ:QCOR): Provides prescription drugs for central nervous system and inflammatory disorders. Market cap at $2.78B, most recent closing price at $44.12. 5-year projected EPS growth at 33.20%. MRQ net profit margin at 40.16% vs. 30.46% y/y. MRQ sales/assets at 0.317 vs. 0.228 y/y. MRQ assets/equity at 1.293 vs. 1.314 y/y.

2. Cyberonics Inc. (NASDAQ:CYBX): Engages in the design, development, manufacture, sale, and marketing of implantable medical devices that provide vagus nerve stimulation (VNS) therapy for the treatment of refractory epilepsy and treatment-resistant depression. Market cap at $1.22B, most recent closing price at $44.63. 5-year projected EPS growth at 28.33%. MRQ net profit margin at 18.5% vs. 14.53% y/y. MRQ sales/assets at 0.272 vs. 0.242 y/y. MRQ assets/equity at 1.155 vs. 1.205 y/y.

3. MEDTOX Scientific Inc. (NASDAQ:MTOX): Provides forensic and clinical laboratory services, and offers diagnostic devices. Market cap at $241.47M, most recent closing price at $26.92. 5-year projected EPS growth at 20.00%. MRQ net profit margin at 5.25% vs. 3.11% y/y. MRQ sales/assets at 0.362 vs. 0.332 y/y. MRQ assets/equity at 1.334 vs. 1.411 y/y.

4. Bio-Reference Laboratories Inc. (NASDAQ:BRLI): Provides clinical laboratory testing services for the detection, diagnosis, evaluation, monitoring, and treatment of diseases primarily in the greater New York metropolitan area. Market cap at $778.36M, most recent closing price at $28.12. 5-year projected EPS growth at 18.50%. MRQ net profit margin at 5.7% vs. 5.68% y/y. MRQ sales/assets at 0.555 vs. 0.514 y/y. MRQ assets/equity at 1.461 vs. 1.585 y/y.

5. RTI Biologics, Inc. (NASDAQ:RTIX): Produces orthopedic and other surgical implants that repair and promote the natural healing of human bone and other human tissues, and improve surgical outcomes. Market cap at $200.99M, most recent closing price at $3.60. 5-year projected EPS growth at 18.00%. MRQ net profit margin at 4.57% vs. 3.08% y/y. MRQ sales/assets at 0.189 vs. 0.183 y/y. MRQ assets/equity at 1.319 vs. 1.349 y/y.

6. PAREXEL International Corporation (NASDAQ:PRXL): Provides clinical research, medical communications, and consulting services, as well as advanced technology products and services to the pharmaceutical, biotechnology, and medical device industries worldwide. Market cap at $1.68B, most recent closing price at $28.02. 5-year projected EPS growth at 16.50%. MRQ net profit margin at 5.55% vs. 4.46% y/y. MRQ sales/assets at 0.277 vs. 0.244 y/y. MRQ assets/equity at 2.501 vs. 2.584 y/y.

7. WellCare Health Plans, Inc. (NYSE:WCG): Provides managed care services for government-sponsored healthcare programs in the United States. Market cap at $2.76B, most recent closing price at $64.06. 5-year projected EPS growth at 15.93%. MRQ net profit margin at 2.86% vs. 1.45% y/y. MRQ sales/assets at 0.666 vs. 0.656 y/y. MRQ assets/equity at 2.276 vs. 2.623 y/y.

8. Meridian Bioscience Inc. (NASDAQ:VIVO): Develops, sells, and distributes diagnostic test kits. Market cap at $809.93M, most recent closing price at $19.63. 5-year projected EPS growth at 15.67%. MRQ net profit margin at 20.3% vs. 17.68% y/y. MRQ sales/assets at 0.3 vs. 0.261 y/y. MRQ assets/equity at 1.124 vs. 1.142 y/y.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: Update: 8 High-Growth Healthcare Stocks With Strong Sources Of Profitability