$PGNX #3 Progenics (PGNX) stock soared 148% while
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The difference?
Progenics saw its sales jump 3,757% in the third quarter of 2016 compared to the prior year, while Gilead’s sales fell 6% in 2016.
Not to beat up on Gilead, but you can see that same battle for customers and profits at hand when comparing Tenet Healthcare Corp (THC) and Hospital Corporation of America (HCA).
Profit Taker No. 4
company is arguably one of the world’s finest pharmaceutical research organizations. In fact, since 2013, the company has been awarded 14 breakthrough therapy designations (BTDs) from the FDA.
As a result, they already have a head start on the race to profits because these designations halve the time it takes to get new drugs developed and approved, giving them a first-to-market advantage that can ramp up sales and increase earnings faster than their competition.
What’s more, they have 21 new drugs in the pipeline that will benefit from President Trump’s goal of slashing the time it takes to bring all drugs to market. Because they are working on the diseases that affect people the most, we’ll see their sales and earnings skyrocketing upon FDA approvals.
To be sure, not every one of their drugs will be approved. That is the nature of this industry. However, when you consider that 25 million patients are being treated with one of their top-selling medicines, this is one company whose track record you can bet on.
Finally, the company has simply been a great investment. Over the past 14 years, the company’s stock price has not only risen over 200%, but they’ve increased their dividend payout a whopping 677%.
Due to the uncertainties of the health care law, the stock is down 7% from last year. This situation won’t last. The company is boasting an 18% profit margin and a 26% operating margin—that’s on top of its 13% year-over-year earnings growth.
So it’s no wonder Wall Street’s 20 top institutional investors own millions of shares worth billions of dollars.
It’s all because they see exactly what I do—a long-term buy-and-hold health care play, one that not only has a long history of dividend growth stock but has also outperformed both the Dow and the S&P 500 through the Great Recession of 2008—all while handing investors a great 3.5% dividend.
Profit Taker No. 5
For investors who prefer mutual funds to individual stocks, our top-performing health care ETF provides you with a grand-slam profit opportunity as well.
Here’s why:
Its holdings include 10 best-in-class drug, research, and medical technologies companies, including the ones we own here at Profitable Investing.
In 10 years its price rose 128%—doubling both the Dow and the S&P 500.
It handed investors a respectable 1.5% dividend.
It has one of the lowest expense ratios in the industry.
Since Election Day, its price is up 2%, while many health care companies have seen their prices slide south.
From today's level, I'm projecting a total return (dividends plus price gain) of 15% to 20% in the short term as the new health care law pushes its holdings higher.
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