For the month of March, the following stocks are considered must-buys by the research staff at Zacks Investment Research.
End-to-end process of drug making
One pharmaceutical company that has witnessed amazing growth rates recently and is all set to reach great heights in the future is Sucampo Pharmaceuticals (SCMP, Financial). What sets this company apart from the rest is that Sucampo deals with the end-to-end process of drug making. This involves analysis, research, testing, developing and marketing the drug. The two drugs that have made the company a well-known brand are Amitiza and Rescula. Other than these, Sucampo is involved in marketing many drugs for gastro-intestinal, ophthalmic, oncological, and neuropathic ailments. These medicines are accepted all over the globe. The first quarter of 2015 reported a 216% jump in growth when compared with the same period last year. For 2015 and 2016, Zacks analysts expect the company to grow at 72.7% and 93.4% respectively. The majority of Sucampo’s business is run from North America. It also has a small share of operations in Latin America and Asia. Currently, the share prices are quite cheap as seen from the trend below, which is why Zacks has ranked it as No. 1 or a “Strong-buy”.
Outperforming the pharma sector
The next on the list of best pharma stock to buy for this month is Lannet Inc. (LCI, Financial). Analysts from Zacks have ranked this stock as No.1, which means this is a strong buy right now. This is because Lannet has clearly outperformed its peers in the pharma sector, as seen from these statistics. At present, the average return on equity for the pharmaceutical sector is -27.73%, whereas it is an impressive 39.58% for Lannet. Also, the overall net profit margin for the whole sector currently is -2.4%, while it is a good 34.24% for Lannet. Added to this fact, it is expected that this stock will grow at a whopping 102.9% this year. These figures should give more than enough clues for investors that this is the right time to invest in this stock.
Lannet, which markets generic drugs, is forecasted to grow at a compounded annual growth rate of 11% for the next four years. With the number of elderly people increasing with every passing year in the US and all over the world, Lannet has access to a wider reach of people. With certain breakthrough approvals expected from the Food and Drug Administration in the near future, the share prices of Lannet are expected to see a huge jump post June. Therefore, Zacks analysts recommend buying these shares right away. The trend of stock price changes of the company for the last few months is seen below:
Conclusion
If you are looking to make some valuable additions to your portfolio for the month of March, these two pharmaceutical stocks could be great choices. With a phenomenal growth rate and a definite edge over their peers, these stocks are all set to soar during this year, thereby giving investors lots of reasons to feel happy about.
