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Do you consider yourself a value investor? We ran a screen with that idea in mind.

We began by screening the healthcare sector for undervalued stocks, those with PEG ratios below 1.

We then screened for strong sales trends by comparing growth in revenue to growth in inventory over the last year. We screened for stocks with positive sales trends, with faster growth in revenue than inventory over the last year. Since inventory represents the portion of goods not yet sold, faster growth in revenue than inventory is considered an encouraging sign.

To screen for strengthening liquidity, we also only focused on those companies with inventory decreasing as a percent of current assets.

For an ‪interactive version of this chart, click on the image below. ‬Market cap data‪ sourced from Zacks Investment Research.‬

Tool provided by Kapitall (www.kapitall.com). More investing ideas on Kapitall Wire (wire.kapitall.com).

Do you think these stocks should be trading higher? Use this list as a starting point for your own analysis.

List sorted by increase in revenue over the last year.

1. China Biologic Products, Inc. (CBPO): Engages in the research, development, manufacturing, and sale of plasma-based pharmaceutical products. Market cap at $273.63M, most recent closing price at $10.31. PEG at 0.49. Revenue grew by 37.02% during the most recent quarter ($47.23M vs. $34.47M y/y). Inventory grew by 22.6% during the same time period ($70.58M vs. $57.57M y/y). Inventory, as a percentage of current assets, decreased from 42.99% to 37.76% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

2. Anika Therapeutics Inc. (ANIK): Develops, manufactures, and commercializes therapeutic products for tissue protection, healing, and repair. Market cap at $202.31M, most recent closing price at $14.66. PEG at 0.59. Revenue grew by 22.32% during the most recent quarter ($14.36M vs. $11.74M y/y). Inventory grew by 3.53% during the same time period ($9.08M vs. $8.77M y/y). Inventory, as a percentage of current assets, decreased from 15.94% to 14.2% during the most recent quarter (comparing 3 months ending 2012-03-31 to 3 months ending 2011-03-31).

3. Community Health Systems, Inc. (CYH): Provides healthcare services through the operation of hospitals in the United States. Market cap at $2.23B, most recent closing price at $24.55. PEG at 0.67. Revenue grew by 9.1% during the most recent quarter ($3,746.43M vs. $3,433.83M y/y). Inventory grew by 4.77% during the same time period ($358.6M vs. $342.27M y/y). Inventory, as a percentage of current assets, decreased from 12.52% to 11.96% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-06-30).

4. USANA Health Sciences Inc. (USNA): Develops, manufactures, distributes, and sells nutritional and personal care products worldwide. Market cap at $655.77M, most recent closing price at $44.13. PEG at 0.75. Revenue grew by 8.04% during the most recent quarter ($160.9M vs. $148.93M y/y). Inventory grew by -4.47% during the same time period ($33.8M vs. $35.38M y/y). Inventory, as a percentage of current assets, decreased from 44.64% to 27.37% during the most recent quarter (comparing 3 months ending 2012-06-30 to 3 months ending 2011-07-02).

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

Source: 4 Undervalued Healthcare Stocks With Strong Inventory Trends