Financial Overview of Five Healthcare S&P 500 Stocks with Impressive Profitability – ISRG, CELG, AMGN, GILD, BIIB

  on Jan 25,2013 Posted in Finance ,Investment Ideas
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Standard & Poor’s 500 Index or S&P 500 is an index of 500 companies chosen for market size, liquidity and industry grouping, among few other factors. The S&P 500 is a leading indicator of United States equities and is doomed to show the risk/return characteristics of the large cap stocks.

Profitability ratios are a set of financial metrics that are used to assess a firm’s ability to produce earnings as evaluated against its outlays and other relevant expenses incurred during a specific period of time.
Higher value of the profitability ratios are mostly considered as good. Few examples of profitability ratios are net profit margin, gross profit margin, return on equity and return on assets. It is important to note that background knowledge is necessary to make relevant comparisons when analyzing these ratios. In this article we will discuss top five S&P 500 healthcare stocks with impressive profitability.

Intuitive Surgical, Inc (NASDAQ:ISRG) has the market capitalization of 23.10 billion. The healthcare stock has P/B ratio of 7.02 while EPS was 15.96. Institutional ownership of the company was 91% while 39.76 million shares were outstanding. Net profit margin of the ISRG was 30.63% while its operating profit margin was 40.14%. Share of the company moving ahead of SMA 50 with 11.96%. ROE ratio was 22.35% while ROI was 21.71%. Intuitive Surgical is the best healthcare stock according to net profit margin ratio in S&P 500 index.

Celgene Corporation (NASDAQ:CELG) has return on equity ratio of 28.29% while its beta factor was 0.63. The company has 41.24 billion in market capitalization. Net Profit margin was 30.01% while operating profit margin was 34.25%. Earnings per share of the company were 3.60 while 422.99 million shares were outstanding. The company earned $1.60 billion in previous twelve months.

Amgen, Inc (NASDAQ:AMGN) has 83% institutional ownership while its EPS ratio was 5.52. The company has 756 million shares were outstanding while market capitalization of the company was 62.46 billion. PEG ratio of Amgen was 1.34 while Price to book ratio was 3.19. Net profit margin of the corporation was 26.71% while operating profit margin was 33.60%. Stock volatility for the month was booked as 1.65% while for the week was recorded as 1.99%.

Gilead Sciences, Inc (NASDAQ:GILD) has market capitalization of 59.40 billion while its Price to book ratio was 6.91. The company offered EPS of 3.20 while its 757.65 million shares were outstanding. Net profit margin of the company was 26.59% while its operating profit margin was 40.40%. The Foster City, California based company earned $2.49 billion in previous 12 months. ROE ratio was 33.89% while ROA was 14.74%.

Biogen Idec Inc (NASDAQ:BIIB) offered EPS of 5.76. The healthcare stock has market capitalization of 34.64 billion. The company has 5.20 prices to book ratio while P/E ratio was 25.42. Shares of the company were moving ahead of 20 days simple moving average with 0.62% while lagging behind its SMA 50 with -0.44%. Net Profit margin was 25.62% while gross profit margin was 89.84%.

Disclosure: Opinions expressed in this article are those of the authors alone who have no stake in any stocks mentioned, and did not plan to acquire any stake within the next 72 hours.



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