Tuesday, March 3, 2015

3 Pharmaceutical Stocks Set for Massive Earnings Growth in 2015 - Stocks in the News


Image result for pharmaceuticalsThe pharmaceutical industry has been kind to most investors who have given it a chance, especially over the past 5 years.  This becomes evident when you look at the iShares pharmaceutical index IHE, as it has shot up over 216% over the last half a decade or so. 
In the past year alone, IHE has climbed 30%.  Indeed, these companies continue to be a boon for investors.  It helps that the industry as a whole stands among the top 28% of all industries. 

But if you are looking for potential top picks in the space, consider some of the buy ranked stocks we have highlighted below. Not only have all three seen rising earnings estimates as of late, but they all have strong growth prospects for 2015 as well:
Sucampo Pharmaceuticals Inc-SCMP
Sucampo Pharmaceuticals is a global biopharmaceutical company specializing in the making and marketing of gastrointestinal as well as other types of medicines globally.  Two of its stand-out drugs include Amitiza and Rescula.  The company has been impressive, and it has a Zacks Rank #1 (Strong Buy).  Expect more volatility with this stock, as it has a beta of 1.6.

The company’s most notable stats include its points which emphasize the growth potential of SCMP.  Year over year growth estimate in the current quarter is 216.67%.  It also has a growth rate of 72.7% for this fiscal year, and 93.4% in fiscal 2016.

It should also be mentioned that the company has surprised on earnings in 3 of the last 4 quarters, beating our EPS consensus by an average of 416.67%.  Earnings for Sucampo come out before the bell on 3/4/15.

Lannet Inc-LCI

Lannet Inc. engages in the manufacturing and distributing of drugs sold under generic names.  It has a Zacks Rank #1 (Strong Buy).  The company has an excellent PEG of 0.91, indicating that the growth it experienced more than justifies the price it is currently trading for.  Something else that goes well with this statistic is the fact that the growth rate for this fiscal year is 102.9%.

In terms of returns, this company fairs much better than the pharmaceutical industry.  For example, the ROE is 39.58% for LCI, compared to -27.73% for the industry.  The net profit margin also favors LCI with a margin of 34.24%, while the industry averages -2.4%.

30 days ago, out EPS consensus was $0.85 for the current quarter.  Since then, our EPS consensus has surged to $0.95.  The company has posted positive earnings surprises in four of the last four quarters.  The most recent beat crushed our consensus by 14.15%.  Lannet reports its earnings on 5/6/15.
Bioline RX Ltd-BLRX
Bioline RX is a biopharmaceutical development company which focuses on licensing, identifying, and developing products for unmet medical needs.  The pharmaceutical company currently holds a Zacks Rank #2 (Buy).  Expect a lot of volatility with BLRX, as the company has a beta of 2.59. 
The growth rate for this fiscal year is 61.3%.  Bioline has posted an EPS surprise last quarter by 81.82% 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 DaysClick to get this free report >>
By Zacks Research Staff

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report

LANNETT INC (LCI): Free Stock Analysis Report

BIOLINE RX LTD (BLRX): Get Free Report




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