4-Star Stocks Poised to Pop: Alkermes
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotechnology company Alkermes (NAS: ALKS) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Alkermes' business and see what CAPS investors are saying about the stock right now.
Alkermes facts
Headquarters (Founded) | Dublin, Ireland (1987) |
Market Cap | $1.43 billion |
Industry | Biotechnology |
Trailing-12-MonthRevenue | $206.2 million |
Management | Chairman/CEO Richard Pops CFO James Frates |
Return on Equity (Average, Past 3 Years) | 0.8% |
Cash/Debt | $247.7 million / $0 |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 236 members who have rated Alkermes believe the stock will outperform the S&P 500 going forward. These bulls include All-Star zzlangerhans, who is ranked in the top 0.5% of our community, and NHWeston.
Just last month, zzlangerhans tapped Alkermes as a possible bargain:
The share price is well off recent highs despite growing revenues for Risperdal Consta and Vivitrol, European approval of Bydureon, and resubmission of Bydureon to the FDA. Jitters over the [Elan Drug Technologies] buyout, perhaps? I think it's too early to call this one, but if they can grow EDT revenues from last year's 104M then the 962M price tag is justified.
Over the past year, in fact, Alkermes grew its top line at a brisk rate of 19%. That's faster than much larger pharma plays like Abbott (NYS: ABT) (13%), Eli Lilly (NYS: LLY) (5%), and Pfizer (NYS: PFE) (9%).
CAPS member NHWeston expands on the outperform argument:
Alkermes is not a one trick pony. They are engaged in work in anti-addiction drugs and other medicines, making them more long lasting and thereby liberating patients from daily injections. They can go higher and might get bought out by Lilly, Pfizer, Merck or some other megaPharma that needs an innoculation of innovation to stave off losses from patent expirations.
What do you think about Alkermes, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Abbott Laboratories. Motley Fool newsletter services have recommended buying shares of Abbott Laboratories and Pfizer. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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