Last year at this time, I made a screen of some stocks from the healthcare sector with an interesting market valuation, a great past growth performance as well as good earnings situation. The stocks had a forward P/E of less than 15, a sales growth over the recent five years of more than 10 percent as well as an operating margin over 10 percent. Exactly seven stocks fulfilled these criteria at that time. Today I like to review these picks and try to discover a new list of potential stocks for next year, 2013.
Over the recent year the Dow Jones Index is up 8.36 percent, the S&P 500 gained 13.82 percent and the Nasdaq is 14.58 percent higher. My seven healthcare picks from last year performed on average 31.55 percent while the healthcare sector summarized a total gain of 25.7 percent. Below is a current screen of the seven picks with performance figures.
The bad news for me is that I don't have invest in one of them. Now I try to make a similar screen with attractive price ratios. The only new restrictions are simple. I allow lower capitalized stocks (over USD2 billion market capitalization) and introduce a new barrier in terms of earnings growth. I want mid-term (next five years) earnings per share growth of more than 5 percent. Thirteen companies remain.
Here are my favorite stocks:
Abbott Laboratories (ABT) has a market capitalization of $102.74 billion. The company employs 91,000 people, generates revenue of $38.851 billion and has a net income of $4.728 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.795 billion. The EBITDA margin is 22.64 percent (the operating margin is 14.81 percent and the net profit margin 12.17 percent).
Financial Analysis: The total debt represents 25.57 percent of the company’s assets and the total debt in relation to the equity amounts to 63.07 percent. Due to the financial situation, a return on equity of 20.07 percent was realized. Twelve trailing months earnings per share reached a value of $4.11. Last fiscal year, the company paid $1.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.81, the P/S ratio is 2.64 and the P/B ratio is finally 4.18. The dividend yield amounts to 3.14 percent and the beta ratio has a value of 0.32.
Herbalife (HLF) has a market capitalization of $4.96 billion. The company employs 5,100 people, generates revenue of $3.454 billion and has a net income of $412.58 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $634.12 million. The EBITDA margin is 18.36 percent (the operating margin is 16.28 percent and the net profit margin 11.94 percent).
Financial Analysis: The total debt represents 14.08 percent of the company’s assets and the total debt in relation to the equity amounts to 36.35 percent. Due to the financial situation, a return on equity of 78.78 percent was realized. Twelve trailing months earnings per share reached a value of $3.88. Last fiscal year, the company paid $0.73 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.84, the P/S ratio is 1.44 and the P/B ratio is finally 9.50. The dividend yield amounts to 2.61 percent and the beta ratio has a value of 1.70.
Teva Pharmaceuticals (TEVA) has a market capitalization of $35.02 billion. The company employs 45,754 people, generates revenue of $18.312 billion and has a net income of $2.829 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.174 billion. The EBITDA margin is 22.79 percent (the operating margin is 16.98 percent and the net profit margin 15.45 percent).
Financial Analysis: The total debt represents 28.95 percent of the company’s assets and the total debt in relation to the equity amounts to 65.40 percent. Due to the financial situation, a return on equity of 12.50 percent was realized. Twelve trailing months earnings per share reached a value of $2.44. Last fiscal year, the company paid $0.95 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.52, the P/S ratio is 2.08 and the P/B ratio is finally 1.71. The dividend yield amounts to 2.55 percent and the beta ratio has a value of 0.36.
Take a closer look at the full list of next year's best healthcare stock picks. The average P/E ratio amounts to 19.60 and forward P/E ratio is 16.84. The dividend yield has a value of 2.75 percent. Price to book ratio is 3.46 and price to sales ratio 2.06. The operating margin amounts to 15.16 percent. The average stock has a debt to equity ratio of 0.92.
Related stock ticker symbols:
ABT, STJ, HLF, TEVA, SYK, TMO, UHS, LIFE, MD, CELG, JAZZ, UTHR, SLXP
Selected Articles:
· The Best Healthcare Growth Picks Of The Next Five Years
· 20 Of The Biggest Healthcare Dividend Payer
· 16 Best Dividend Paying Healthcare Stocks
· 12 Healthcare Dividend Stocks With Highest Short Ratio
Over the recent year the Dow Jones Index is up 8.36 percent, the S&P 500 gained 13.82 percent and the Nasdaq is 14.58 percent higher. My seven healthcare picks from last year performed on average 31.55 percent while the healthcare sector summarized a total gain of 25.7 percent. Below is a current screen of the seven picks with performance figures.
The bad news for me is that I don't have invest in one of them. Now I try to make a similar screen with attractive price ratios. The only new restrictions are simple. I allow lower capitalized stocks (over USD2 billion market capitalization) and introduce a new barrier in terms of earnings growth. I want mid-term (next five years) earnings per share growth of more than 5 percent. Thirteen companies remain.
Here are my favorite stocks:
Abbott Laboratories (ABT) has a market capitalization of $102.74 billion. The company employs 91,000 people, generates revenue of $38.851 billion and has a net income of $4.728 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $8.795 billion. The EBITDA margin is 22.64 percent (the operating margin is 14.81 percent and the net profit margin 12.17 percent).
Financial Analysis: The total debt represents 25.57 percent of the company’s assets and the total debt in relation to the equity amounts to 63.07 percent. Due to the financial situation, a return on equity of 20.07 percent was realized. Twelve trailing months earnings per share reached a value of $4.11. Last fiscal year, the company paid $1.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.81, the P/S ratio is 2.64 and the P/B ratio is finally 4.18. The dividend yield amounts to 3.14 percent and the beta ratio has a value of 0.32.
Herbalife (HLF) has a market capitalization of $4.96 billion. The company employs 5,100 people, generates revenue of $3.454 billion and has a net income of $412.58 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $634.12 million. The EBITDA margin is 18.36 percent (the operating margin is 16.28 percent and the net profit margin 11.94 percent).
Financial Analysis: The total debt represents 14.08 percent of the company’s assets and the total debt in relation to the equity amounts to 36.35 percent. Due to the financial situation, a return on equity of 78.78 percent was realized. Twelve trailing months earnings per share reached a value of $3.88. Last fiscal year, the company paid $0.73 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 11.84, the P/S ratio is 1.44 and the P/B ratio is finally 9.50. The dividend yield amounts to 2.61 percent and the beta ratio has a value of 1.70.
Teva Pharmaceuticals (TEVA) has a market capitalization of $35.02 billion. The company employs 45,754 people, generates revenue of $18.312 billion and has a net income of $2.829 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $4.174 billion. The EBITDA margin is 22.79 percent (the operating margin is 16.98 percent and the net profit margin 15.45 percent).
Financial Analysis: The total debt represents 28.95 percent of the company’s assets and the total debt in relation to the equity amounts to 65.40 percent. Due to the financial situation, a return on equity of 12.50 percent was realized. Twelve trailing months earnings per share reached a value of $2.44. Last fiscal year, the company paid $0.95 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 16.52, the P/S ratio is 2.08 and the P/B ratio is finally 1.71. The dividend yield amounts to 2.55 percent and the beta ratio has a value of 0.36.
Take a closer look at the full list of next year's best healthcare stock picks. The average P/E ratio amounts to 19.60 and forward P/E ratio is 16.84. The dividend yield has a value of 2.75 percent. Price to book ratio is 3.46 and price to sales ratio 2.06. The operating margin amounts to 15.16 percent. The average stock has a debt to equity ratio of 0.92.
Related stock ticker symbols:
ABT, STJ, HLF, TEVA, SYK, TMO, UHS, LIFE, MD, CELG, JAZZ, UTHR, SLXP
Selected Articles:
· The Best Healthcare Growth Picks Of The Next Five Years
· 20 Of The Biggest Healthcare Dividend Payer
· 16 Best Dividend Paying Healthcare Stocks
· 12 Healthcare Dividend Stocks With Highest Short Ratio
