This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Healthcare Sector: High Quality Stocks At A Great Value

Nick Sousa, Kapitall:  Analysts are favoring the healthcare sector in 2013 due to strong projected growth supported by an aging population, an increase in chronic diseases, and industry M&A activity. With this in mind, we screened for healthcare stocks that have solid returns that are also cheaply priced. [Related: Find Good Buys With Strong Returns and High Quality​]

We screened for companies in the healthcare sector with a return on assets over 10% and a price-to-book value under 2. These metrics were used to find potential high quality stocks, which are stocks that have a gross profit margin divided by total assets over 33%. This ratio can be computed by taking gross profit (Revenue – COGS) from the income statement and the total asset amount from the balance sheet.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Below is our list of great value stocks that are high in quality in the healthcare sector. List Average 1-Year Return: -18%:

1. AmSurg Corp. (AMSG): Engages in the development, acquisition, and operation of ambulatory surgery centers in partnership with physicians in the United States. Market cap at $1.06B, most recent closing price at $32.96.

P/B = 1.57 ROA = 14.23% Quality = .38
 

2. Columbia Laboratories Inc. (CBRX): Engages in the research, development, and commercialization of women's healthcare and endocrinology products. Market cap at $53.38M, most recent closing price at $0.61.

P/B = 1.70 ROA = 17.58% Quality = .87
 

3. Cyanotech Corporation (CYAN): Produces natural products derived from microalgae. Cyanotech is engaged in the cultivation and production of microalgae into natural health and nutrition products.

P/B = 1.49 ROA = 13.73% Quality = .51
 

4. Hi Tech Pharmacal Co. Inc. (HITK): Develops, manufactures, markets, and sells generic, prescription, over-the-counter (OTC), and nutritional products in liquid and semisolid dosage forms in the United States. Market cap at $466.54M, most recent closing price at $34.38.

P/B = 1.88 ROA = 13.24% Quality = .46

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,086.63 -26.91 -0.16%
S&P 500 1,987.01 +3.48 0.18%
NASDAQ 4,473.6970 +17.6810 0.40%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs