3. China Sky One Medical (CSKI) sells supplements and over-the-counter drugs.
Numbers: Third-quarter profit grew 25% to $12 million, or 74 cents a share, as revenue climbed 46% to $43 million. China Sky One's operating margin narrowed from 42% to 37%. Its balance sheet stores $56 million of cash and no debt.
Stock: China Sky One Medical appreciated 52% in the past year, trailing U.S. benchmarks. The stock trades at a price-to-projected-earnings ratio of 5.9, a 64% discount to the peer group average. Its PEG ratio of 0.3 indicates a bargain based on expected growth.
Catalyst: Concerns about competition and product quality have dogged this stock in recent months, but its diversification into medical-testing kits and bio-engineering products is likely to bolster growth. Its net cash position should reduce trepidation.Consensus: Just three analysts follow China Sky One, and they all advocate purchasing the shares. The most bullish price target comes from Singular Research, which expects the stock to rise 77% to $28.50. It places in the top 6% of our coverage universe.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV