This weekend, my eyes and thoughts curved around the Healthcare sector. I read several interesting articles from the sector, mostly about the biotech's new Hepatitis C drugs from Gilead, Solvaldi and Harvoni.
Those are very expensive drugs with potential to kill the current medical systems.
I also noticed that the Healthcare sector grows at a much faster pace than the economy does, at 11+ percent. How can you benefit? I don't know. Prices are high, even on free cash flow basis.
Second, the old synthetic drug machine á la Pfizer doesn't work anymore. PFE is losing revenues.Â
In order to get an overview about modest valuated growth stocks from the Healthcare sector, I've created a screen for large capitalized sector members with the following main criteria:
- EPS growth next five years: over 5 percent
- Sales growth past five years: over 5 percent
- Forward P/E under 20
- Positive Dividend
14 attractive healthcare growth stocks remain. It's a very selective list with focus on sales and earnings growth. You can find the full results attached.
You may also interested in my older articles about healthcare dividend stocks.
Below are also five of my favorites. Which stocks do you like? Please let me know.
AbbVie -- Yield: 3.24%
AbbVie (ABBV, Financial) works within the Drug Manufacturers - Major industry, a part of the Healthcare sector, and has a market capitalization of $96.43 billion.
The healthcare company employs 26,000 people, generates revenue of $19,960 million and has a net income of $1,774 million. Sales grew in average 7% per year over the past 5 years.
AbbVie's earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4,549 million. The EBITDA margin is 22.79 percent (the operating margin is 17.09% and the net profit margin 8.89%).
Financials: The total debt represents 54.49 percent of AbbVie's assets and the total debt in relation to the equity amounts to 861.71%. Here are some return ratios:
Return on Assets: 6.20%
Return on Equity: 37.20%
Return on Investment: 10.50%
Quick Ratio: 2.50
Current Ratio: 2.60
Twelve-trailing-months earnings per share reached a value of $1.10. Last fiscal year, AbbVie paid $1.66 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 55.00, the P/S ratio is 4.83 and the P/B ratio is finally 20.79. The dividend yield amounts to 3.24%.
P/E: 55.00
Forward P/E: 12.10
PEG: 3.57
P/S: 4.83
P/B: 20.79
P/Cash: 12.47
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#2 Amgen -- Yield: 2.00%
Amgen (AMGN, Financial) works within the Biotechnology industry, a part of the Healthcare sector, and has a market capitalization of $119.69 billion.
The Healthcare company employs 17,900 people, generates revenue of $20,063 million and has a net income of $5,158 million. Sales grew in average 6.50% per year over the past 5 years.
See more here: Cracking The Best Healthare Dividend Stock Secret...
