The following are the top rated Healthcare stocks according to Validea’s P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
PATTERSON COMPANIES, INC. (PDCO) is a mid-cap value stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch is 91% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Patterson Companies, Inc. is a specialty distributor serving the United States and Canadian dental supply markets and the United States, Canadian and United Kingdom animal health supply markets. The Company’s segments include Dental, Animal Health and Corporate. Dental segment provides a virtually complete range of consumable dental products, equipment and software, turnkey digital solutions and value-added services to dentists, dental laboratories, institutions, and other healthcare professionals throughout North America. Animal Health segment is a full-line distributor in North America and the United Kingdom. of animal health products, services, and technologies to both the production-animal and companion-pet markets. The Company provides relief services. It also provides pasteurizing equipment and single-use bags that allow dairy producers to produce, store and feed colostrum for newborn calves, as well as product offerings for beef cattle producers.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| INVENTORY TO SALES: | PASS |
| YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: | PASS |
| EARNINGS PER SHARE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of PATTERSON COMPANIES, INC.
PDCO Guru Analysis
PDCO Fundamental Analysis
BECTON DICKINSON AND CO (BDX) is a large-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch is 56% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Becton, Dickinson and Company is a global medical technology company. The Company is engaged in the development, manufacture and sale of a range of medical supplies, devices, laboratory equipment and diagnostic products used by healthcare institutions, physicians, life science researchers, and others. The Company’s BD Medical segment produces an array of medical technologies and devices that are used to help improve healthcare delivery in a wide range of settings. The BD Medical segment consists of various business units, including medication delivery solutions, medication management solutions, and pharmaceutical systems. The Company’s BD Life Sciences segment provides products for the collection and transport of diagnostics specimens, and instruments and reagent systems to detect a broad range of infectious diseases, healthcare-associated infections and cancers. The Company’s BD Interventional segment provides vascular, urology, oncology and surgical specialty products.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| P/E/GROWTH RATIO: | FAIL |
| SALES AND P/E RATIO: | FAIL |
| INVENTORY TO SALES: | PASS |
| EPS GROWTH RATE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of BECTON DICKINSON AND CO
BDX Guru Analysis
BDX Fundamental Analysis
MERIT MEDICAL SYSTEMS INC (MMSI) is a mid-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Peter Lynch is 54% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Merit Medical Systems, Inc. is a manufacturer and marketer of medical devices used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy. Its cardiovascular segment consists of cardiology and radiology devices, which assist in diagnosing and treating coronary arterial disease, peripheral vascular disease and other non-vascular diseases and includes embolotherapeutic, cardiac rhythm management, electrophysiology, critical care, breast cancer localization and guidance, biopsy, interventional oncology and spine devices. Its endoscopy segment consists of gastroenterology and pulmonology devices which assist in the palliative treatment of expanding esophageal, tracheobronchial and biliary strictures caused by malignant tumors. It offers products in five product categories: peripheral intervention, cardiac intervention, custom procedural solutions, original equipment manufacturer (OEM) and endoscopy.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| P/E/GROWTH RATIO: | PASS |
| SALES AND P/E RATIO: | FAIL |
| INVENTORY TO SALES: | PASS |
| EPS GROWTH RATE: | FAIL |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of MERIT MEDICAL SYSTEMS INC
MMSI Guru Analysis
MMSI Fundamental Analysis
ASCENDIS PHARMA A/S (ASND) is a mid-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Ascendis Pharma A/S is a Denmark-based company that manufactures pharmaceutical products. The Company produces products for the treatments of growth hormone deficiency, endocrinology, central nervous system disorders, infectious diseases, and diabetes. The Company operates globally though its subsidiaries: Ascendis Pharma GmbH (Germany), Ascendis Pharma, Inc. (Delaware, United States), Ascendis Pharma Endocrinology, Inc. (Delaware, United States), Ascendis Pharma, Ophthalmology Division A/S (Denmark), Ascendis Pharma, Endocrinology Division A/S (Denmark), Ascendis Pharma Bone Diseases A/S (Denmark), Ascendis Pharma Growth Disorders A/S (Denmark) and Ascendis Pharma Oncology Division A/S (Denmark).
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
Detailed Analysis of ASCENDIS PHARMA A/S
ASND Guru Analysis
ASND Fundamental Analysis
ARCUTIS BIOTHERAPEUTICS INC (ARQT) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Arcutis Biotherapeutics, Inc. is a late-stage biopharmaceutical company. It is focused on developing and commercializing treatments for dermatological diseases with unmet medical needs. It harnesses its dermatology development platform to build therapies against biologically validated targets. Its dermatology development platform includes a robust pipeline with multiple clinical programs for a range of inflammatory dermatological conditions. The company’s lead program, topical roflumilast, has the potential to advance the care for plaque psoriasis of the body and scalp, atopic dermatitis and seborrheic dermatitis. It is developing roflumilast cream for the treatment of plaque psoriasis, including psoriasis in intertriginous regions, such as the groin, axillae and inframammary areas, as well as atopic dermatitis. It is also developing ARQ-252 is topical cream formulation of a potent and selective small molecule inhibitor of JAK1 and is developing it for chronic hand eczema and vitiligo.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
Detailed Analysis of ARCUTIS BIOTHERAPEUTICS INC
ARQT Guru Analysis
ARQT Fundamental Analysis
ARDELYX INC (ARDX) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Ardelyx, Inc. is a biopharmaceutical company. The Company focuses on discovery, development, and commercialization of advanced medicines that meet significant unmet medical needs. The Company’s product pipeline includes IBSRELA (tenapanor), XPHOZAH, RDX013 Program, and RDX020 Program. Tenapanor is a small molecule therapy in development for the treatment of hyperphosphatemia, a condition of elevated levels of phosphate in the blood, common among patients with chronic kidney disease (CKD) on dialysis. Tenapanor has a mechanism of action and acts locally in the gut to inhibit the sodium hydrogen exchanger 3 (NHE3). IBSRELA is developed for the treatment of patients with irritable bowel syndrome with constipation (IBS-C). XPHOZAH is a medicine for the control of serum phosphorus in adult patients with CKD on dialysis. RDX013 Program is a small molecule potassium secretagogue program for the treatment of hyperkalemia. RDX020 Program is a small molecule for treating metabolic acidosis.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
Detailed Analysis of ARDELYX INC
ARDX Guru Analysis
ARDX Fundamental Analysis
ANI PHARMACEUTICALS INC (ANIP) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: ANI Pharmaceuticals, Inc. is a diversified biopharmaceutical company that serves patients in need by developing, manufacturing and marketing branded and generic prescription pharmaceuticals, including for diseases with unmet medical needs. The Company is focused on developing and manufacturing niche oncology products (anti-cancer). It has a commercial portfolio of over 101 products with a variety of indications and a portfolio of pipeline products. The Company owns the facility, which includes oral solid dose and liquid manufacturing and packaging, warehouse facilities, analytical, stability, and microbiological laboratory space, and employee office and mechanical space. It also owns a manufacturing facility that includes oral solid dose manufacturing and packaging for pharmaceutical products. Its four pharmaceutical manufacturing facilities, of which two are located in Baudette, Minnesota, one is located in East Windsor, New Jersey and one is located in Oakville, Ontario.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
Detailed Analysis of ANI PHARMACEUTICALS INC
ANIP Guru Analysis
ANIP Fundamental Analysis
AMARIN CORPORATION PLC (ADR) (AMRN) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Amarin Corporation PLC is a pharmaceutical company. The Company is focused on the commercialization and development of therapeutics to improve cardiovascular (CV), health and reduce CV risk. The Company operates through the development and commercialization of VASCEPA. Its lead product, Vascepa (icosapent ethyl) capsule is used as an adjunct to diet to reduce triglyceride levels in adult patients with severe hypertriglyceridemia. This indication for Vascepa, known as the MARINE indication, is based primarily on the results from the MARINE study of Vascepa in this approved patient population. The Company sells Vascepa principally to wholesalers, as well as selected regional wholesalers and specialty pharmacy providers, or collectively, its distributors, which in turn resell Vascepa to retail pharmacies for resale to patients and healthcare providers.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
Detailed Analysis of AMARIN CORPORATION PLC (ADR)
AMRN Guru Analysis
AMRN Fundamental Analysis
AMYLYX PHARMACEUTICALS INC (AMLX) is a mid-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Amylyx Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company. The Company is engaged in the discovery and development of treatments for neurodegenerative diseases. The Company is focused on the development and commercialization of its product candidate, AMX003 (sodium phenylbutyrate and taurursodiol, also known as ursodoxicoltaurine) for the treatment of amyotrophic lateral sclerosis (ALS). The Company is developing AMX0035 for other neurodegenerative diseases by leveraging knowledge and relationships in the neurodegenerative space. AMX0035 is a dual unfolded protein response (UPR)-Bax apoptosis inhibitor composed of PB and TURSO (also known as TUDCA). Its development of antisense oligonucleotides (ASOs), including lead ASO AMX0114, which targets calpain-2 (CAPN2), a gene encoding calcium-dependent proteolytic enzyme which has been implicated in the pathogenesis of ALS and other neurodegenerative diseases.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
Detailed Analysis of AMYLYX PHARMACEUTICALS INC
AMLX Guru Analysis
AMLX Fundamental Analysis
ALNYLAM PHARMACEUTICALS, INC. (ALNY) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Peter Lynch is 0% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Alnylam Pharmaceuticals, Inc. is a commercial-stage biopharmaceutical company. The Company is engaged in developing therapeutics based on ribonucleic acid interference (RNAi). Its pipeline includes five marketed products and over ten clinical programs, including several in late-stage development, across four strategic therapeutic areas (STArs): genetic medicines, cardio-metabolic diseases, hepatic infectious diseases, and CNS/ocular diseases. Its RNAi-based medicines include ONPATTRO (patisiran), AMVUTTRA (vutrisiran), GIVLAARI (givosiran), OXLUMO (lumasiran) and Leqvio (inclisiran). ONPATTRO is an intravenously administered RNAi therapeutic targeting transthyretin amyloidosis. GIVLAARI is used to reduce induced liver aminolevulinic acid synthase 1 messenger RNA (mRNA), to reduce toxins associated with attacks and other disease manifestations of acute hepatic porphyria. OXLUMO is an RNAi therapeutic targeting hydroxyacid oxidase 1 for the treatment of primary hyperoxaluria type 1.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
Detailed Analysis of ALNYLAM PHARMACEUTICALS, INC.
ALNY Guru Analysis
ALNY Fundamental Analysis
Peter Lynch Portfolio
Top Peter Lynch Stocks
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment’s Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500’s 15.8 percent yearly return over that time. Lynch’s common sense approach and quick wit made him one of the most quoted investors on Wall Street. (“Go for a business that any idiot can run — because sooner or later, any idiot probably is going to run it,” is one of his many pearls of wisdom.) Lynch’s bestseller One Up on Wall Street is something of a “stocks for the everyman/everywoman”, breaking his approach down into easy-to-understand concepts.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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