The aging of America is lifting these stocks’ growth prospects, writes Hilary Kramer, editor of GameChangers.
The Picks:
- Generic drug maker Teva Pharmaceutical Industries (Nasdaq: TEVA)
- Biotechnology cancer drug researcher Dendreon (Nasdaq: DNDN)
- Imaging center operator RadNet (Nasdaq: RDNT)
- Lumbar treatment specialist Trans1 (Nasdaq: TSON)
The Takeaways:
- Teva boasts economies of scale and other competitive advantages
- Dendreon’s breakthrough drug shows promise for treating a variety of cancers
- RadNet’s reach allows it to strike more advantageous deals with suppliers and insurers
- Trans1’s lumbar treatment is winning insurer recognition for cost-effectiveness
By the Numbers:
- Teva shares closed below $56 Tuesday, 18% below Kramer’s $68 price target
- A course of treatment with Dendreon’s Provenge costs $93,000. Buy under $42.50 with a $50 price target. Shares closed below $35 Tuesday
- RadNet operates 180 diagnostic centers. Shares closed at $3.58 Tuesday, 28% off the $5 price target
- Trans1 shares are up 70% since Jan. 6 closing at $3.49 Tuesday. Buy below $3.25 with a $5 price target
Quotable:
“The demographics represent a long-term favorable trend that will be beneficial to the industry, but it will not usher in an era of rapid growth. Furthermore, future levels of government reimbursement will continue to be an issue.”
Learn More:
- Louis Navellier recommends a heart valves specialist with a healthy global footprint
- Josh Peters prefers a big drug maker and device manufacturer with a big and growing dividend.
