4-Star Stocks Poised to Pop: Pacific Biosciences of California
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biotech company Pacific Biosciences of California (NAS: PACB) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Pacific Biosciences' business and see what CAPS investors are saying about the stock right now.
Pacific Biosciences facts
Headquarters (Founded) | Menlo Park, Calif. (2000) |
Market Cap | $213.9 million |
Industry | Biotechnology |
Trailing-12-Month Revenue | $11.4 million |
Management | Chairman/CEO Hugh Martin Co-Founder/Chief Technology Officer Stephen Turner |
Trailing-12-Month Return on Equity | (73.7%) |
Cash/Debt | $216.6 million / $3 million |
Competitors | Affymetrix (NAS: AFFX) Illumina (NAS: ILMN) Life Technologies (NAS: LIFE) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96% of the 248 members who have rated Pacific Biosciences believe the stock will outperform the S&P 500 going forward. These bulls include NeuroNerd and All-Star TSIF, who is ranked in the top 0.1% of our community.
Late last month, NeuroNerd tapped Pacific Biosciences as a long-term bargain opportunity:
I think it is fair to say that adoption will be slower than management's original optimistic projections because of the price tag; however, my suspicion is that the razor-and-blade model will allow them to eventually become profitable as specialized centers like ours adopt them. They really do have capabilities that leave the competition in the dust for certain applications.
Over the next five years, in fact, Pacific Biosciences is expected to grow its bottom line at a brisk rate of 30% annually. That's much faster than that of competitors Affymetrix (14%), Illumina (21%), and Life Technologies (10%).
CAPS All-Star TSIF expands on the risk/reward trade-off:
Research spending and government spending are in flux and most entities are holding spending waiting for things to become clearer.
Because Pacific Biosciences technology is newer and less adopted they have to garner loyalty and breach the competition. Their technology appears to be more advanced, but they need sales to convince the investment community. ... I like Pacific Biosciences at these prices, but it's still a bit of a spec play.
I'd like to play this one up and hold it, setting a trailing limit and looking for a decent upside the next year or two as its technology gets adopted.
What do you think about Pacific Biosciences -- 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!
Interested in another easy way to trackPacific Biosciences?Add it to your watchlist.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Illumina. 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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