Hospira, Inc. (HSP): Michael Price Is Bullish on This Drug Manufacturer

Looking forward, Baxter International Inc. (NYSE:BAX) expects that its sales growth will be around 10%, excluding currency exchange impact. The full year 2013 EPS was estimated to stay in the range of $4.60 to $4.70 per share. Income investors might like Baxter with its increasing dividends over the past 10 years. Its dividend has risen from $0.58 per share in 2003 to $1.57 per share in 2012. At the current trading price, Baxter offers investors a decent dividend yield at 2.8%.

Becton, Dickinson and Co. (NYSE:BDX) is trading at around $100 per share, with the total market cap of $19.44 billion. The market values the company at 15.9 times its forward earnings and 4.2 times its book value. At the current price, the dividend yield stays at 2%. Investors might be bullish on the company due to the fact that its subsidiary, Becton Dickinson Rx, recently received FDA approval for its second drug in the BD Simplist line of ready-to-administer prefilled generic injectables. It would help clinicians simplify the traditional vial and syringe injection sequence, minimizing the potential medication error. For the full year, the company expected to have 3.5%-4% in revenue. The EPS might experience decent growth of 6.5% to 7% to the range of $5.72 – $5.75 per share.

My Foolish take

Hospira, Inc. (NYSE:HSP) could be considered an opportunistic play on the turnaround after its recent missteps with its lowest book value ratio. Michael Price believed that its EPS could recover to $3 per share. Now selling at 15 times earnings, Hospira could reach $45 per share in the near future.

The article Michael Price Is Bullish on This Drug Manufacturer originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG has no position in any stocks mentioned. The Motley Fool recommends Becton Dickinson. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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