Were it not for the cool-down in natural gas prices over the past 18 months, Cabot's sales and profits would have been exploding by now. Instead, sales are likely to rise around 20% this year (to $1.18 billion). Yet analysts think that natural gas prices will rebound moderately in 2013, setting the stage for sales growth of around 40%.
Analysts at Brean Murray suggest you value this stock based on the value of its real estate. They think the net asset value stands at around $60, well above the current $40 stock price.
Salix PharmaceuticalsGastro-intestinal distress is no laughing matter, as anyone with its symptoms will tell you. From Crohn's disease to irritable bowel syndrome to plain old cramping, GI distress can force one to drop plans on a moment's notice, and lead them to stay close to home. Fortunately, Salix Pharmaceuticals (SLXP) has been making tremendous progress in this area. Salix's Xifaxan has been prescribed by an increasing number of doctor's for symptoms of diarrhea, enabling many people to resume more normal lives. The drug has powered Salix's income statement, from under $200 million in 2008 to $540 million in 2011. >>5 Biotech Stocks Poised for Breakouts And that revenue base could swell a lot higher if Salix's Solesta drug is as successful as analysts anticipate. The injectable drug has had great success in clinical trials, helping bulk up loose stool. The drug is a lot more powerful than traditional anti-diarrhea drugs you can buy at a pharmacy, though a lot less invasive than the major bowel surgery that some people require. Analysts at Merrill Lynch anticipate a launch in 2013 for Solesta, and see sales for this drug rising to $250 million by 2016. That should enable Salix Pharma to maintain its robust pace of 20+% annual growth. To see these stocks in action, visit the 7 Stocks With Strong and Steady Sales Growth portfolio.
Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV