Validea’s Top Ten Healthcare Stocks Based On Joseph Piotroski – 2/19/2023

The following are the top rated Healthcare stocks according to Validea’s Book/Market Investor model based on the published strategy of Joseph Piotroski. This value-quant strategy screens for high book-to-market stocks, and then separates out financially sound firms by looking at a host of improving financial criteria.

EMERGENT BIOSOLUTIONS INC (EBS) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 80% 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: Emergent BioSolutions, Inc. is a life sciences company focused on providing preparedness and response solutions addressing accidental, deliberate and naturally occurring public health threats (PHTs). The Company is focused on five PHT categories: chemical, biological, radiological, nuclear and explosives (CBRNE); emerging infectious diseases; travel health; public health crises (such as the opioid crisis and the COVID-19 pandemic); acute, emergency, and community care. Its business lines include Medical Countermeasures (MCM), Commercial and CDMO. MCM focuses primarily on procurement of MCM products and procured product candidates by domestic and international government customers. It provides solutions for PHTs through a portfolio of vaccines and therapeutics that it develops and manufactures for governments and consumers. It offers TEMBEXA (brincidofovir) an antiviral for the treatment of smallpox in all age groups, including adults, and for patients who have difficulty swallowing.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS

Detailed Analysis of EMERGENT BIOSOLUTIONS INC

EBS Guru Analysis

EBS Fundamental Analysis

FULGENT GENETICS INC (FLGT) is a small-cap value stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Joseph Piotroski is 80% 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: Fulgent Genetics, Inc. is a technology company, which offers COVID-19 testing services, molecular diagnostic testing services and comprehensive genetic testing designed to provide physicians and patients with clinically actionable diagnostic information to improve the patient care quality. The Company develops a technology platform, which offers a test menu. It performs full-gene sequencing with deletion/duplication analysis in single-gene tests; pre-established, multi-gene, disease-specific panels; and customized panels. Its test offerings also include Solid Tumor Molecular Profiling for somatic cancer testing, Rapid Whole Genome testing developed for children in neonatal intensive care units or pediatric intensive care units its Newborn Genetic Analysis panel, and a single front-line test designed to comprehensively detect ataxia-related variants. It also offers certain research service tests, which are ordered by research institutions and other similar institutional customers.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS

Detailed Analysis of FULGENT GENETICS INC

FLGT Guru Analysis

FLGT Fundamental Analysis

TELADOC HEALTH INC (TDOC) is a mid-cap value stock in the Healthcare Facilities industry. The rating according to our strategy based on Joseph Piotroski is 80% 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: Teladoc Health, Inc. provides virtual healthcare services. The Company operates in health services segment. The Company provides virtual access to care with a portfolio of services and solutions, which includes various medical subspecialties from non-urgent, episodic needs, such as flu and upper respiratory infections, to chronic, complicated medical conditions, such as hypertension, cancer and congestive heart failure. It provides provide virtual healthcare services on a business-to-business (B2B) basis to its clients including employers, health plans, hospitals and health systems, and insurance and financial services companies spanning the global healthcare landscape and provide services to consumers directly and through channel partners. The Company’s consumer brands, including Teladoc, Livongo, Advance Medical, Best Doctors, BetterHelp and HealthiestYou, provides access to advice and resolution for an array of healthcare needs.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS

Detailed Analysis of TELADOC HEALTH INC

TDOC Guru Analysis

TDOC Fundamental Analysis

ELANCO ANIMAL HEALTH INC (ELAN) is a mid-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 70% 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: Elanco Animal Health Incorporated is an animal health company. The Company is focused in delivering products and services to prevent and treat disease in farm animals and pets. Its portfolio serves animals across its core species consisting of dogs, cats and cattle, poultry, swine, sheep and aqua. It offers products in two primary categories: Pet Health and Farm Animal. Its Pet Health portfolio is focused on parasiticides, vaccines and therapeutics. Its parasiticide portfolios in the pet health sector include species and formulations, with products that protect pets from worms, fleas and ticks. Its over-the-counter treatments include Seresto, Advantage, Advantix, Advocate, Credelio, Interceptor Plus and Trifexis. Its farm animal portfolio consists of products designed to prevent, control and treat health challenges primarily focused on cattle. Its products include medicated feed additives, antibiotics, vaccines, such as Rumensin and Baytril. Its poultry products are Maxiban and others

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS FAIL
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS

Detailed Analysis of ELANCO ANIMAL HEALTH INC

ELAN Guru Analysis

ELAN Fundamental Analysis

OPKO HEALTH INC. (OPK) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 60% 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: OPKO Health, Inc. is a healthcare company. The Company’s segments include Diagnostics and Pharmaceutical. The Diagnostics segment consists of the clinical laboratory operations of Bio-Reference Laboratories (Bio-Reference) and its point-of-care operations. Pharmaceutical segment consists of the pharmaceutical operations in Chile, Mexico, Ireland, Israel and Spain and its pharmaceutical research and development operations. Through Bio-Reference, it operates laboratory divisions, such as Bio-Reference, GenPath (Oncology), GenPath (Women’s Health) and GeneDx. Its Pharmaceutical Business have one commercial stage pharmaceutical product and several pharmaceutical compounds and technologies in various stages of research and development for a range of indications and conditions, including Renal Products, Oxyntomodulin, Biologics, Factor VIIa -CTP and hGH-CTP. It also owns an active pharmaceutical ingredients (APIs) manufacturer in Israel through its subsidiary FineTech Pharmaceutical, Ltd.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS

Detailed Analysis of OPKO HEALTH INC.

OPK Guru Analysis

OPK Fundamental Analysis

TILRAY INC (TLRY) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 60% 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: Tilray Brands, Inc. is a global cannabis-lifestyle and consumer packaged goods company. The Company operates through four segments: cannabis business, distribution business, beverage alcohol business, and wellness business. The cannabis business segment is engaged in the cultivation, production, distribution, and sale of both medical and adult-use cannabis products. The distribution business segment is engaged in the purchase and resale of pharmaceutical and wellness products. The beverage alcohol business segment is engaged in the production, marketing, and sale of beverage alcohol products. The wellness business segment is engaged in the production, marketing and distribution of hemp-based food and other wellness products. It offers a broad-based portfolio of adult-use brands and products and expands its portfolio to include new cannabis products and formats. It is also a hemp food manufacturer. It has operations in Canada, the United States, Europe, Australia, and Latin America.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: FAIL
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS

Detailed Analysis of TILRAY INC

TLRY Guru Analysis

TLRY Fundamental Analysis

VIATRIS INC (VTRS) is a large-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 50% 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: Viatris Inc. is a global healthcare company. The Company’s segments include Developed Markets, Greater China, JANZ and Emerging Markets. Developed Markets segment comprises its operations primarily in North America and Europe. Greater China segment includes its operations in China, Taiwan and Hong Kong. JANZ segment reflects its operations in Japan, Australia and New Zealand. Emerging Markets segment encompasses its presence in approximately 125 countries within various markets and economies, as well as its anti-retroviral franchise. Its portfolio comprises over 1,400 approved molecules across a range of key therapeutic areas, including key brands, complex generics, and biosimilars. It operates around 40 manufacturing sites worldwide, which produces oral solid doses, injectables, complex dosage forms and active pharmaceutical ingredients. Its Viatris Eye Care division is focused on discovery, development, and commercialization of pharmaceutical therapies to treat ophthalmic 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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS

Detailed Analysis of VIATRIS INC

VTRS Guru Analysis

VTRS Fundamental Analysis

GALAPAGOS NV – ADR (GLPG) is a mid-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 40% 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: Galapagos NV is a Belgium-based clinical-stage biotechnology company. The Company is engaged in the discovery and development of small molecule medicines with novel modes of action. Its pipeline comprises Phase 3, 2, 1, pre-clinical studies and discovery small-molecule and antibody programs in cystic fibrosis, inflammation, and other indications. The Company focuses on developing a portfolio of clinical-stage therapies for the enhancement of existing treatment paradigms. It develops transformational medicines in areas of high unmet need by combining internal with external science with the goal to add years of life and improve quality of life of patients across the globe. Galapagos NV also discovers which proteins that are involved in causing diseases such as, rheumatoid, arthritis, inflammatory bowel disease and fibrosis. The Company acquired CellPoint and AboundBio in order to develop a cell therapy, which is a potential transformative treatment of different types of cancer.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: FAIL
CASH COMPARED TO NET INCOME: FAIL
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS

Detailed Analysis of GALAPAGOS NV – ADR

GLPG Guru Analysis

GLPG Fundamental Analysis

SNDL INC (SNDL) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski is 40% 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: SNDL Inc. is a Canada-based private sector liquor and cannabis retailer with retail banners that include Ace Liquor, Wine and Beyond, Liquor Depot, Value Buds, and Spiritleaf. It operates through four segments: Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments. The Liquor Retail segment includes the sale of wines, beers and spirits through wholly owned liquor stores. The Cannabis Retail segment includes the private sale of recreational cannabis through wholly owned and franchise retail cannabis stores. The Cannabis Operations segment include the cultivation, distribution and sale of cannabis for the adult-use market and medical markets in Canada. The Investments segment include the deployment of capital to investment opportunities. It cannabis brand portfolio includes Top Leaf, Sundial Cannabis, Palmetto, Spiritleaf Selects, Grasslands, Versus Cannabis, Value Buds, Vacay and Grasslands. It operates over 180 multi-banner cannabis retail store network in Canada.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: FAIL
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS FAIL
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: FAIL

Detailed Analysis of SNDL INC

SNDL Guru Analysis

SNDL Fundamental Analysis

ADMA BIOLOGICS INC (ADMA) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joseph Piotroski 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: ADMA Biologics, Inc. is a biopharmaceutical company. It develops, manufactures, and markets specialty plasma-based biologics for the treatment and prevention of infectious diseases. It is engaged in the development and commercialization of human plasma and plasma-derived therapeutics. Its patients include immune-compromised individuals who suffer from an underlying immune deficiency disorder and immune-suppressed for medical reasons. Its product candidates include BIVIGAM, an Intravenous Immune Globulin (IVIG) product indicated for the treatment of Primary Humoral Immunodeficiency (PI); ASCENIV an IVIG product indicated for the treatment of PI, and Nabi-HB which is indicated for the treatment of acute exposure to blood containing Hepatitis B surface antigen (HBsAg). Its ADMA BioCenters subsidiary operates source plasma collection facilities in the United States. Its Plasma Collection Centers segment, provides a portion of its blood plasma for the manufacture of its products candidates.

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.

BOOK/MARKET RATIO: FAIL
RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: FAIL
CASH COMPARED TO NET INCOME: FAIL
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS

Detailed Analysis of ADMA BIOLOGICS INC

ADMA Guru Analysis

ADMA Fundamental Analysis

Joseph Piotroski Portfolio

About Joseph Piotroski: Piotroski isn’t your typical Wall Street big shot. In fact, he’s not even a professional investor. He’s a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago’s Graduate School of Business, Piotroski published a groundbreaking paper in the Journal of Accounting Research entitled “Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers”. In it, Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent average annual back-tested return from 1976 through 1996 — more than double the S&P 500’s gain during that time. Piotroski’s findings were reported in major financial publiations like SmartMoney. Today, he teaches accounting at Stanford University’s Graduate School of Business.

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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