3 Healthcare Stocks Trading at Attractive Multiples: The Cooper Companies, Inc. (COO), Albany Molecular Research, Inc. (AMRI), Cambrex Corporation (CBM)

Revenue in the TTM period was 8.6%, which is about even pace with the company’s five-year average.  The company has new products in the pipeline, including new designs for contact lenses.  These should hit the market over the next two years and help the company to grow its top line.  Also, it is worth noting that profit margins have improved of late.  The company’s operating margin widened to nearly 20%, much better than its longer-term average of 17.2%.  This is at least partially the result of improvements in manufacturing efficiency, which should help sustain profit margins and EPS growth going forward.

The stock has climbed about 7% over the last month.  This has pushed up the price tag to a price/sales ratio of about 3.5, which is a premium to the industry average.  But value investors should not be dissuaded.  Once we take into consideration expectations for future earnings, the price tag is more appealing, with a forward P/E of 15.5.

The Bottom Line

The healthcare sector offers investors many growth opportunities.  However, in many cases, that growth is already reflected in the stock price.  Still, careful value investors can also find appealing stocks in this space, and Albany Molecular, Cambrex, and Cooper Companies all warrant a closer look.

The article 3 Healthcare Stocks Trading at Attractive Multiples originally appeared on Fool.com and is written by Erik Dellith

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