Salix Pharmaceuticals (SLXP) analysts have been raising estimates since the latest earnings surprise back in August. Those moves have left the stock with impressive growth rates and a Zacks #1 Rank (Strong Buy).
Company Description
Salix Pharmaceuticals make prescription pharmaceuticals to prevent and treat gastrointestinal diseases.
Revenue Up 42%
The last quarterly report from Salix was back on Aug 8, but it was a good one. Product revenue was up 42%, to $133.2 million for the second quarter. That puts the year-to-date sales growth at 73%.
Earnings per share came out to $0.54, which was 6 cents higher than the Zacks Consensus Estimate. Salix has now topped expectations in each of the past 10 quarters.
Estimates Rising
Estimates have been up nicely in recent months. This year’s Zacks Consensus Estimate rose 8 cents, to $2.07, thanks in part an upward revision in the past few days.
Projections for 2012 are up 11 cents on average, to $2.31. Last year the company brought in $0.27 per share, so the expected growth rates are now 668% and 11%, respectively.
Priced Right
Shares of SLXP are going for about 15 times forward estimates and have a PEG ratio near 0.7 times. Both metrics showing a solid value to go along with the earnings growth.
The Chart
Shares have been on a roll lately as bargain hunters flocked to SLXP during the recent optimism. So, right now it looks like the stock has growth, value, and momentum.
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service
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