3 Healthcare Stocks Trading Near 52-Week Lows to Buy This Month

NYSE: TARO | Taro Pharmaceutical Industries Ltd. News, Ratings, and Charts

TARO – The healthcare industry is growing rapidly amid increasing demand from an aging population and digital transformation in health systems and technologies, among other factors. And because clinical innovation is expected to continue in the healthcare sector this year, we think it could be profitable to invest in these fundamentally sound healthcare stocks: Taro Pharmaceutical (TARO), Bioventus (BVS), and Hanger (HNGR). So, let’s discuss these names.

The healthcare industry has witnessed significant changes over the past two years, driven by innovation, including the shift to telemedicine and virtual health programs, emerging advanced technologies, and more. Digital technologies have transformed the culture of healthcare with the introduction of smart healthcare, advanced cognitive technologies, and important advances in life-extending therapies. Healthcare spending is expected to represent 20.1% of the U.S. economy by 2025.

Also, according to a report by Vantage Market Research, the global healthcare virtual assistance market is projected to reach $3.13 billion by 2028, growing at a 35.6% CAGR during the forecasted period.

Given these factors, we think it advisable to invest in the healthcare stocks Taro Pharmaceutical Industries Ltd. (TARO), Bioventus Inc. (BVS), and Hanger, Inc. (HNGR), which are expected to achieve considerable growth in the coming months.

Click here to checkout our Healthcare Sector Report for 2022

Taro Pharmaceutical Industries Ltd. (TARO)

TARO is a leading science-based pharmaceutical company based in Haifa, Israel. It develops, manufactures, and markets prescription and over-the-counter pharmaceutical products in the U.S., Canada, Israel, and internationally. The company offers products for various therapeutic categories, including allergy, antibacterial, antibiotic, anti-cancer, cardiovascular, dermatology, endocrine, narcotics, neuropathic pain, and more.

In its fiscal third quarter, ended Dec. 31, 2021, TARO’s gross profit increased 3.9% year-over-year to $76.03 million. Its operating income increased 1.8% year-over-year to $36.97 million. The company’s income before income taxes grew marginally from its  year-ago value to $39.50 million.

The $565.09 million  consensus revenue estimate for its fiscal year 2022 ending March 2022 represents 2.9% year-over-year growth.

Over the last five days, the stock has gained 3.6% in price to close Friday’s trading session at $45.88. The stock is currently trading 6% above its 52-week low of $43.29, which it hit on Jan. 24, 2022.

TARO’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

TARO has a B grade for Growth, Stability, and Value. Within the Medical – Pharmaceuticals industry, it is ranked #16 of 182 stocks. To see additional POWR Ratings (Momentum, Sentiment, and Quality) for TARO, click here.

Bioventus Inc. (BVS)

BVS in Durham, N.C. is a medical device company. The company offers clinical treatments that engage and enhance the body’s natural healing processes. BVS provides osteoarthritic joint pain treatment and joint preservation products, bone graft substitutes, and exogen systems for the non-invasive treatment of fractures.

Last December, BVS was granted U.S. FDA clearance for its BoneScalpel Access handpiece, which is powered by the Nexus Ultrasonic Surgical Aspirator system. BVS plans to launch BoneScalpel Access in 2022. The  handpiece is the latest innovation in the company’s best-in-class ultrasonic surgical platform and is expected to widen the company’s product portfolio and boost revenue streams.

Last November, BVS signed a lease agreement to double its operations and manufacturing space and relocate from its current facility in Memphis. The expansion of the Memphis location might be required to manage the company’s organic growth, vertical integration of operations and manufacturing capabilities, and additional growth through acquisitions.

BVS’ net sales increased 26.8% year-over-year to $108.89 million in its fiscal third quarter, ended Oct. 2, 2021. The company’s gross margin rose 26.1% year-over-year to 85.71 million. BVS’ operating income increased 2.3% from its year-ago value to $15.05 million. And its net income grew 10.1% year-over-year to $13.83 million.

Analysts expect BVS’ revenue for its fiscal 2021 fourth quarter, ended December 31, 2021, to come in at $130.29 million, representing a 32.2% rise year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of all the trailing four quarters.

Shares of BVS have declined 15.1% in price year-to-date and closed Friday’s trading session at $12.30. The stock is currently trading 14.5% above its 52-week low of $10.74, which it hit on March 5, 2021.

According to our POWR Ratings, BVS has a B grade for Value. It is ranked #13 of 56 stocks in the Medical – Diagnostics/Research industry. Click here to see BVS ratings for Momentum, Stability, Growth, Sentiment, and Quality.

Hanger, Inc. (HNGR)

HNGR provides orthotic and prosthetic (O&P) services, O&P devices, and therapeutic solutions to patients and businesses in acute and clinic settings in the U.S. The Austin, Tex., company operates in two segments: Patient Care; and Products & Services. It operates approximately 704 patient care clinics and 112 satellite locations in 46 states and the District of Columbia.

In its fiscal third quarter, ended September 30, HNGR’s net revenues increased 12.9% year-over-year to $289.83 million. Its income from operations rose 96.3% year-over-year to $25.67 million, and its adjusted EBITDA increased 33.5% year-over-year to $37.20 million. The company’s net income grew 209.9% from the year-ago value to $21.12 million. And HNGR’s income per share increased 200% from the year-ago value to $0.54.

The $315.45 million consensus revenue estimate for its fiscal fourth quarter, ended Dec. 31, 2021, represents 13.7% year-over-year growth. The $0.44 consensus EPS estimate for the fiscal fourth quarter indicates 22.2% year-over-year growth. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in each of the trailing four quarters.

The stock has gained 1.5% in price over the five days to close Friday’s trading session at $17.40. It is currently trading 7.7% above its 52-week low of $16.16, which it hit on December 20, 2021.

HNGR has an overall B rating, which translates to Buy in our proprietary rating system. HNGR has a grade of B for Value and Stability. Among the 13 stocks in the Medical -Hospitals industry, it is ranked #3.

Click here to see the additional POWR Ratings for Momentum, Growth, Sentiment, and Quality for HNGR.

Click here to checkout our Healthcare Sector Report for 2022


TARO shares were trading at $45.80 per share on Monday afternoon, down $0.08 (-0.17%). Year-to-date, TARO has declined -8.60%, versus a -8.18% rise in the benchmark S&P 500 index during the same period.


About the Author: Mangeet Kaur Bouns


Mangeet’s keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet’s looks to help retail investors understand the underlying factors before making investment decisions. More...


More Resources for the Stocks in this Article

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