3. Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is a specialty pharmaceutical company in the areas of dermatology, neurology and branded generics. This is one of the stocks that is actually pushing the drug industry forward. The stock has tripled in value over the past 3 years, giving a return of 35% compared to the S&P’s 14%. With a market cap of $25 billion, the past 1 year EPS growth rate has been tremendous at 28%. This was due to more than 50 takeovers and divestitures taking place, with Valeant Pharmaceuticals Intl Inc (NYSE:VRX) transforming into a global company. The unique thing about Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is it has cut down on the research expenses that are not paying out. In this way it has efficiently utilized its research dollars. No drug makes more than 10% of revenue for Valeant Pharmaceuticals Intl Inc (NYSE:VRX), which means that it is not dependent on a particular drug.
Currently the P/E of the stock is 13, which is line with the pharmaceutical industry. The PEG ratio is also low at 0.82, indicating it is trading significantly lower than the book value. Unlike other pharmaceutical companies, lawsuits and other legal matters would not have an impact on Valeant Pharmaceuticals Intl Inc (NYSE:VRX) because of its diverse portfolio. I am very optimistic about this stock due to its strong portfolio of brand names, its global expansion, and the expected jump in earnings growth.
To summarize, the above 3 stocks might be a major boost to your wallet strength in the coming years. I picked up Zynga Inc (NASDAQ:ZNGA) because of the immense potential in the internet gaming industry, Radian Group Inc (NYSE:RDN) due to its huge cash pile, and Valeant Pharmaceuticals Intl Inc (NYSE:VRX) due to its diversity in the drug market and global expansion.
The article Double Your Money With These 3 Stocks originally appeared on Fool.com and is written by Tanya Kanodia.
Tanya Kanodia has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Tanya 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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