Join        Login             Stock Quote

All That Jazz (JAZZ)

 February 10, 2011 08:17 PM

(by Mike Cintolo, editor Cabot Top Ten Weekly) The visible growth story at Jazz Pharmaceuticals (JAZZ) is the narcolepsy treatment Xyrem, which accounts for 85% of revenues.

But Jazz has great potential to make big money with other drugs too—all of which focus on the chemistry of the brain.

Thanks to patents, Jazz has a decade to run with Xyrem before generic competitors can enter the market. 

Meanwhile, its drugs have potential to treat and/or cure obsessive-compulsive disorders, anxiety disorders, ?bromyalgia, epilepsy and restless leg syndrome.  

And investors have been busily climbing on board in recent months as they become aware of the company's great growth potential.  

But by our rough yardstick, the stock is not yet particularly overvalued, especially if one or two of its drugs in development bear fruit.  

The company turned pro?table ?ve quarters ago. Furthermore, the company's pro?t margin has been expanding rapidly in recent quarters.

And while we recognize that there are limits, the trend is heartening. Fourth quarter earnings will be released soon, though we don't have a date.

The company expects earnings of $0.53–$0.58 per share, while analysts' mean estimate is $0.59.

This marks the third appearance of JAZZ among out Top Ten since early December, and probably not the last.  

The stock has spent the past few weeks building a tidy base centered on 22. If you own it from a previous recommendation, hold on tight. If you're not on board, you can buy now with a stop just south of 20.
iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

article imageIs The Slump In US Manufacturing Easing?

Yesterday’s November survey data from the Philadelphia Fed hints at the possibility that a stronger trend read on...

article imageMarket Potentially Facing Near Term Technical Headwinds

After the S&P 500 Index pullback on Thursday and Friday last week, the market's advance on Monday and read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.