With the Supreme Court definitely deciding the fate or varying degrees of Obamacare’s fate tomorrow, and Medical Supply and Equipment stocks showing up in our Sector Selector, Top Equity News decided to examine the industries to find some stocks to buy, possibly.
There are roughly 230 companies to choose from, and many are penny stocks that aren’t worthy of consideration, yet. We were surprised to see far more sickly looking charts than robust in the two medical groups. Perhaps, Wall Street has had a change of heart in the last couple of days.
TEN found a handful of companies with stock charts that give the appearance of a higher stock price to come in the immediate-term; however, when we examined the fundamentals, whoa nelly, most are promise stocks.
They are built up on the promise of high growth rates and potential, with supercharged valuations; for example, a 347 P/E on expected revenue growth of 9%. Top Equity readers would be advised to pass on those types of companies – no thanks.
We did find one company that meets most of Top Equity’s criteria, Cynosure, Inc. (CYNO). The medical equipment company develops, manufactures, and markets aesthetic treatment systems to the dermatology, plastic surgery, and general medical markets.
Analysts believe the company’s business offers investors explosive growth. This year, CYNO’s earnings are forecasted to grow by more than 200% and in 2013 by 64%, or more. Meanwhile, Cynosure’s forward P/E is about half of 31.52 is half of next year’s target eps growth rate. That’s a discount that should favor investors.
Additionally, CYNO trades with a PEG ratio of 0.57. Studies have shown that companies with PEGs of one and under tend to outperform the market. That’s what we look for, right?
Top Equity News believes Cynosure, Inc. (CYNO) is an appropriate candidate for aggressive investors willing to accept large, day-to-day price swings, and who are willing to hold while down 15-20%.
In the next 12 to 18 months, TEN believes the medical equipment maker’s price has the potential to double. If the stock were to close below $16.60, we’d get out.
Cynosure, Inc. (CYNO) an Obamacare Winner? is an article from: 
