Seeking Alpha
Value
Profile| Send Message|
( followers)  

Having cash reserves is critical to a healthcare company with plans for growth. Those funds will provide the means to stay on the cutting edge of research and engage in product development. What is interesting about the list of healthcare stocks that we cultivated today is that they all have projected EPS growth rates between 27 - 34% for the next five years, which signifies solid and steady growth. In addition, this growth rate appears to be manageable and attainable given the cash reserves all of these companies have on hand. If companies that have liquidity and sizeable growth projections interest you, then you will like the list of stocks we have for you today.

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).

EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The 5-Year Expected EPS Growth Rate is a long term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.

We first looked for healthcare stocks. We then looked for businesses that have a substantial amount of cash on hand (Current Ratio>2)(Quick Ratio>2). We next screened for businesses that are considered high-growth, with 5-year projected EPS growth above 25%. We did not screen out any market caps.

Do you think these stocks will go up in valuation? Please use our list to assist with your own analysis.

1) Palomar Medical Technologies Inc. (NASDAQ:PMTI)

SectorHealthcare
IndustryMedical Appliances & Equipment
Market Cap$159.50M
Beta1.37

PMTI stock chart

Key Metrics

Current Ratio7.32
Quick Ratio5.82
5-Year Projected Earnings Per Share Growth Rate34.00%
Short Interest4.03%

Palomar Medical Technologies, Inc., together with its subsidiaries, designs, manufactures, markets, and sells lasers and other light-based products, and related disposable items and accessories for use in dermatology and cosmetic procedures. It provides a range of products based on proprietary technologies that address various cosmetic issues, including hair removal; body sculpting comprising laser-assisted liposuction; removal of vascular lesions, such as rosacea, spider veins, port wine stains, and hemangiomas; wrinkle reduction; removal of leg veins; removal of benign pigmented lesions, including age and sun spots, freckles, and melasma; tattoo removal; acne treatment; skin resurfacing; treatment of red pigmentation in hypertrophic and keloid scars; treatment of verrucae, skin tags, and seborrheic keratosis; skin tightening through soft tissue coagulation; scars comprising acne scars, stretch marks, and warts; and soft tissue coagulation.

The company's proprietary technology products include EsteLux pulsed light system, Palomar MediLux pulsed light system, StarLux 300 and StarLux 500 pulsed light and laser systems, Aspire body sculpting system and SlimLipo handpiece, Artisan Platform facial rejuvenation system, Palomar Icon aesthetic system, Acleara acne clearing system, Adivive fat transfer system, SkinTel melanin reader, Palomar Q-YAG 5 system, and Palo Via skin renewing laser. It offers its products through a network of distributors, cable television shopping, high end department stores, online retailers, physician's offices, spas, and palovia.com in North America, Europe, the Middle East, Asia/Pacific Rim, South and Central America, Australia, and Japan. Palomar Medical Technologies, Inc. was founded in 1987 and is headquartered in Burlington, Massachusetts.

2) Corcept Therapeutics Incorporated (NASDAQ:CORT)

SectorHealthcare
IndustryBiotechnology
Market Cap$285.08M
Beta0.67

CORT stock chart

Key Metrics

Current Ratio6.59
Quick Ratio6.17
5-Year Projected Earnings Per Share Growth Rate30.00%
Short Interest5.97%

Corcept Therapeutics Incorporated, a pharmaceutical company, engages in the discovery, development, and commercialization of drugs for the treatment of severe metabolic and psychiatric disorders. It focuses on disorders that are associated with a steroid hormone called cortisol. The company focuses on commercializing Korlym (mifepristone) 300 mg Tablet, a once-daily oral medication for treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous Cushing's syndrome, who have type 2 diabetes mellitus or glucose intolerance and have failed surgery or are not candidates for surgery. Corcept Therapeutics Incorporated was founded in 1998 and is headquartered in Menlo Park, California.

3) Cumberland Pharmaceuticals, Inc. (NASDAQ:CPIX)

SectorHealthcare
IndustryDrug Manufacturers - Other
Market Cap$118.13M
Beta-

CPIX stock chart

Key Metrics

Current Ratio12.09
Quick Ratio11.07
5-Year Projected Earnings Per Share Growth Rate30.00%
Short Interest12.29%

Cumberland Pharmaceuticals Inc., a specialty pharmaceutical company, engages in the acquisition, development, and commercialization of branded prescription products for the hospital acute care and gastroenterology markets primarily in the United States. The company's principal products include Acetadote, an intravenous formulation of N-acetylcysteine indicated for the treatment of acetaminophen poisoning; Caldolor, an intravenous formulation of ibuprofen for the treatment of pain and fever; and Kristalose, a prescription laxative administered orally for the treatment of constipation. The company markets and sells its products through sales representatives and managers. Cumberland Pharmaceuticals, Inc. was incorporated in 1999 and is headquartered in Nashville, Tennessee.

4) DUSA Pharmaceuticals Inc. (NASDAQ:DUSA)

SectorHealthcare
IndustryDrug Manufacturers - Other
Market Cap$134.25M
Beta0.81

DUSA stock chart

Key Metrics

Current Ratio6.99
Quick Ratio6.37
5-Year Projected Earnings Per Share Growth Rate33.00%
Short Interest4.78%

DUSA Pharmaceuticals, Inc., a vertically integrated dermatology company, develops and markets Levulan photodynamic therapy and other products for common skin conditions primarily in the United States, Canada, and Korea. The company's marketed products include Levulan Kerastick 20% Topical Solution with PDT, as well as the BLU-U brand light source for the treatment of non-hyperkeratotic actinic keratoses of the face or scalp. It also markets the BLU-U without Levulan PDT for the treatment of moderate inflammatory acne vulgaris and general dermatological conditions. The company was founded in 1991 and is headquartered in Wilmington, Massachusetts.

5) Dendreon Corp. (NASDAQ:DNDN)

SectorHealthcare
IndustryBiotechnology
Market Cap$747.10M
Beta3.90

DNDN stock chart

Key Metrics

Current Ratio6.06
Quick Ratio5.29
5-Year Projected Earnings Per Share Growth Rate27.00%
Short Interest28.73%

Dendreon Corporation, a biotechnology company, engages in the discovery, development, and commercialization of novel therapeutics to enhance cancer treatment options for patients. The company's product portfolio includes active cellular immunotherapy and small molecule product candidates to treat a range of cancers. The company offers PROVENGE (sipuleucel-T), an autologous cellular immunotherapy for the treatment of asymptomatic or minimally symptomatic, metastatic, castrate-resistant (hormone-refractory), and prostate cancer. Dendreon Corporation was founded in 1992 and is headquartered in Seattle, Washington.

*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on 09/12/2012.

Source: 5 Highly-Liquid Healthcare Stocks With Growth On The Horizon