9 Health Care Stocks With 100% Buy Ratings

NEW YORK (TheStreet) -- Transcend Services (TRCR), Emergent BioSolutions (EBS), Athersys (ATHX) and MediciNova (MNOV) are among 9 stocks with 100% buy ratings from analysts.

In comparison, pharma giants Johnson & Johnson ( JNJ), Pfizer ( PFE), Merck ( MRK), Abbott Laboratories ( ABT) and Bristol Myers Squibb ( BMY) have buy ratings in the range of 30%-70%.

In addition, analysts expect these nine stocks to outperform their peers and broader markets, based on the upside implied from their respective 12-month price targets. These stocks have an implied upside potential of 5%-331% with a mean upside value of around 92%.

9. Transcend Services ( TRCR) is a medical transcription company in the U.S. engaged in developing and utilizing a range of technology solutions to support the transcription process, including robust voice capture systems and speech recognition technology. The company will announce its first quarter results on May 5.

Net income for the first quarter of 2011 is forecast at $3.3 million on sales of $28.9 million, compared to a net income of $1.6 million on $22.2 million sales recorded during 2010 first quarter, according to analysts polled by Bloomberg. Earnings per share are pegged at 28 cents, up from 15 cents per share reported during the comparable quarter last year.

The company recently completed the acquisition of DTS America for $9.5 in cash. Transcend will not assume any debt. The transaction is expected to have a nominal negative impact on second quarter 2011 earnings per share in the $0.00-$0.01 per share range due to transaction costs, and would be accretive to earnings per share starting third quarter of 2011.

All the four analysts covering the stock rate a buy on it. The stock has 5% upside over the next 12 months with a consensus target price of $25, analysts polled by Bloomberg envisage. The stock has gained 60% during the past one year.

8. ICU Medical ( ICUI) is engaged in the development, manufacture and sale of medical devices used in vascular therapy, oncology and critical care applications.

For first quarter 2011, the company reported 11% year-over-year increase in net sales to $71.5 million from $64.4 million, driven by worldwide demand for Custom Sets, CLAVEs, oncology products and TEGO for the renal dialysis market. Subsequently, net income soared 89.7% to $8.1 million, or 57 cents per share, from $4.3 million, or 30 cents per share, in the year-ago quarter. Cash, cash equivalents, and investment securities increased 14.4% sequentially to $106.8 million from $93.4 million, while the company had no debt.

For full year 2011, the management reaffirmed its previously announced revenue guidance in the range of $295 million-$305 million. It also raised its earnings per share guidance range to $2.30-$2.50 per share, up from the previous guidance of $2.25-$2.45 per diluted share.

All the seven analysts covering the stock rate a buy on it. The stock is expected to deliver 12% over the next 12 months with a consensus target price of $49.8, according to analysts polled by Bloomberg. The stock has gained 26% during the past one year.

7. HealthStream ( HSTM) provides Internet-based learning and research solutions to meet the training, information, and education needs of the health care industry.

For 2011 first quarter, the company reported 25% year-over-year increase in net sales to $18.5 million from $14.8 million owing to a 26% and 22% increase in revenue from HealthStream Learning and HealthStream Research, respectively. Earnings almost doubled to $1.5 million, or 7 cents per share, from $0.8 million, or 4 cents per share, in the year-ago quarter.

The company recently acquired a 50% stake in Laerdal Medical's Advanced Video System (AVS), a product that enables users of advanced patient simulators to easily capture simulation video, audio, data logs, and "patient" responses, creating a powerful debriefing tool to optimize learning. The company paid $3.5 million in cash, using existing cash balances to fund this transaction.

All the five analysts covering the stock recommend buying it. Analysts polled by Bloomberg expect the stock to gain around 14% over the next 12 months with a target price of $11.3. The stock has gained a whopping 106% during the past one year and 28% during the past one month.

6. Emergent BioSolutions ( EBS) is a biopharmaceutical company focused on the development, manufacture and commercialization of vaccines and antibody therapies for use in preventing and treating disease. The company operates in two business segments: biodefense and commercial. The company will announce its first quarter results on May 5.

Net loss for the first quarter of 2011 is forecast at $12.8 million on sales of $24.8 million, compared to a net income of $2.5 million on $46.8 million sales recorded during 2010 first quarter, according to analysts polled by Bloomberg. Loss per share is pegged at 52 cents compared to earnings of 8 cents per share reported during the comparable quarter last year.

The company recently signed a modification to its current procurement contract with the U.S. government to supply an additional 3.42 million doses of BioThrax. The modification is valued at $101 million for the delivery and shipping of additional doses of BioThrax beginning third quarter of 2011.

All the six analysts covering the stock rate a buy on it. Analysts polled by Bloomberg expect the stock to gain around 34% over the next 12 months with a consensus target price of $31.5. The stock has gained 49% during the last one year and currently trades at a P/E of 15.1

5. Alimera Sciences ( ALIM) is a biopharmaceutical company that specializes in the research, development and commercialization of prescription ophthalmic pharmaceuticals, focusing on diseases affecting the back of the eye, or retina. The company will announce its first quarter results on May 5.

Net loss for the first quarter of 2011 is forecast at $6.7 million, or 20 cents per share, compared to net income of $2.6 million, or 12 cents per share, according to analysts polled by Bloomberg.

The stock was recently upgraded from an underperform rating to a neutral rating by analysts at Zacks Investment Research. All the six analysts covering the stock rate a buy on it. Analysts polled by Bloomberg foresee 48% upside for the stock over the next 12 months with a consensus target price of $13. The stock has already gained a whopping 152% during the past one year and currently trades at a P/E of 18.6

4. NuPathe ( PATH) is a specialty pharmaceutical company focused on the development and commercialization of therapeutics for diseases of the central nervous system, including neurological and psychiatric disorders. The company will announce its first quarter results on May 10.

Net loss for the first quarter of 2011 is forecast at $7.2 million, or 49 cents per share, compared to net loss of $4 million recorded during 2010 first quarter, according to analysts polled by Bloomberg.

The company recently announced that the United States Patent and Trademark Office (USPTO) has issued a notice of allowance for U.S. patent application 12/181,142 entitled "Transdermal Methods and Systems for the Delivery of Anti-Migraine Compounds." This application relates to methods of effectively treating a migraine using an iontophoretic patch containing a triptan. NuPathe expects to receive the within the next few months, post that, the patent will provide coverage for its lead product candidate, Zelrix, through April 2027, in addition to the coverage provided by its licensed U.S. Patent No. 6,745,071, which expires in February 2023.

All the five analysts covering the stock recommend buying it. Analysts polled by Bloomberg expect the stock to gain around 75% over the next 12 months with a target price of $14. Analysts at Zacks Investment Research recently reiterated a neutral rating on the stock.

3. OncoGenex Pharmaceuticals ( OGXI) is a biopharmaceutical company engaged in the development and commercialization of cancer therapies. The products focus on mechanisms of treatment resistance in cancer patients by blocking the production of specific proteins, which promote the survival of tumor cells and proliferate in response to a variety of cancer therapies. The company will report its first quarter 2011 results on May 9.

Net loss for the first quarter of 2011 is forecast at $4.8 million on sales of $2.6 million, compared to a net loss of $3 million on $4.7 million sales recorded during 2010 first quarter, according to analysts polled by Bloomberg. Loss per share is pegged at 52 cents, up from 48 cents per share reported during the comparable quarter last year.

The company recently announced that the European Patent Office (EPO) has granted European Patent Number EP1545561 entitled "Oligonucleotides for Treatment of Prostate and other Cancers." Scott Cormack, president and CEO of OncoGenex, said, "The issuance of this patent confirms our position as the leader in Hsp27 antisense therapeutics and provides us with a broad patent that applies well beyond particular cancers or particular compositions."

All the six analysts covering the stock rate a buy on it. According to analysts polled by Bloomberg, the stock has 137% upside over the next 12 months with a consensus target price of $37.

2. Athersys ( ATHX) is a biopharmaceutical company engaged in the discovery and development of therapeutic product candidates. The company's product development portfolio includes MultiStem, a stem cell product under development for treating multiple diseases. MultiStem is being evaluated in two ongoing clinical trials and has been authorized for use in a third clinical trial.

In addition, Athersys is developing pharmaceuticals to treat indications such as obesity, certain cognitive and attention disorders, and other forms of excessive daytime sleepiness. The company will report its first quarter 2011 results on May 5.

Net loss for the first quarter of 2011 is forecast at $2.6 million on sales of $2.6 million, compared to a net loss of $2.6 million on $1.7 million sales recorded during 2010 first quarter, according to analysts polled by Bloomberg. Loss per share is pegged at 12 cents, down from 14 cents per share reported during the comparable quarter last year.

All the three analysts covering the stock rate a buy on it. According to analysts polled by Bloomberg, the stock has 175% upside over the next 12 months with a consensus target price of $8.

1. MediciNova ( MNOV) is a Japan-based bio-pharmaceutical company engaged in the acquisition and development of low-molecular pharmaceutical products for diseases with no effective treatments available, focusing mainly on the U.S. market. The company will report its first quarter 2011 results on May 17.

The company is expected to report a loss of $5 million, or 36 cents per share, during 2011 first quarter, compared to loss of 42 cents per share and 40 cents per share in the year-ago and quarter-ago periods, respectively, as per analysts polled by Bloomberg.

All the five analysts covering the stock recommend a buy on it. Analysts polled by Bloomberg project a massive 331% upside over the next 12 months with a consensus target price of $11.30.

>>To see these stocks in action, visit the 9 Health Care Stocks With 100% Buy Ratings portfolio on Stockpickr.

More from Stocks

Sarepta Shares Keep Climbing and PTC Therapeutics Bounces Back

Sarepta Shares Keep Climbing and PTC Therapeutics Bounces Back

Dow Fluctuates, Nasdaq Strikes Record High

Dow Fluctuates, Nasdaq Strikes Record High

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

What Will GM Do With Cruise -- and Is Its Stock Worth $55?

GE's Exit From Dow Could Be a Blessing in Disguise, Goldman Says

GE's Exit From Dow Could Be a Blessing in Disguise, Goldman Says