Are you looking to diversify with high growth stocks in the healthcare sector? The following stock list, which accounts for high earnings growth and internal management purchases could be a great way to jump start your search.
To create this list we started by screening the healthcare sector for companies that are expected to achieve high earnings growth going forward, with 5-year projected EPS growth above 15%.
Next, we looked for stocks with significant net insider purchases over the last six months representing over 1% of share float. Since insiders work at the companies in question, they have more knowledge about the firm than outsiders. Therefore, when they use their own money to purchase shares of their company's stock, it indicates they are bullish about the firm's future and believe current share price is undervalued. There are also studies that suggest when insider purchases greatly outweigh any insider selling, the stocks are correlated with outperformance in the market during the following six months.
Insiders think these healthcare stocks will live up their high growth expectations. Do you agree?Analyze These Ideas: Getting Started: Access a performance overview for all stocks in the list 1. XOMA Corporation (XOMA) : Engages in the discovery, development, and manufacture of therapeutic antibodies to treat inflammatory, autoimmune, infectious, and oncological diseases. Market cap at $330.38M, most recent closing price at $4.0. EPS growth over the next 5 years at 19%. Over the last six months, insiders were net buyers of 4,722,670 shares, which represents about 9.8% of the company's 48.21M share float.
2. Genomic Health Inc. (GHDX): Focuses on the development and global commercialization of genomic-based clinical laboratory services that analyze the underlying biology of cancer allowing physicians and patients to make individualized treatment decisions. Market cap at $1.03B, most recent closing price at $34.15. EPS growth over the next 5 years at 32.95%.