Apr. 14, 2008 (Investor's Business Daily delivered by Newstex) --
Medical stocks often can serve up a healthy dose of stability in price and earnings performance.
Folks need drugs and access to health care services no matter what shape the economy is in. So some medical stocks make the cut when you screen for steady stocks with a track record of solid earnings and sales growth.
Genzyme (GENZ) specializes in developing treatments for rare inherited disorders. Such "orphan" diseases, as they are often called, affect fewer than 200,000 people in the U.S.
The Cambridge, Mass.-based biotech also makes treatments for kidney diseases, oncology, orthopedics and immune-system diseases. It provides diagnostic testing services, as well.
Genzyme recently recalled three lots of its Thymoglobulin injectable drug for transplant patients after one lot failed to meet some requirements.
The FDA's recall notice was released Thursday but didn't affect the stock. In fact, Genzyme has held up well in this year's volatile market. It slid 18% from its mid-January peak to form its current base, and may be building the right side of the pattern.
By comparison, the Nasdaq composite fell 25% from its early November high to its recent low.
Genzyme has posted double-digit profit and sales growth in the past 16 quarters. Analysts expect the streak to continue over the next four periods.
The company has a five-year earnings growth rate of 27%. It has an EPS Stability Rating of 3, putting it among the most stable.
Check out the table that accompanies this story at Investors.com for other stocks with solid but long-running earnings growth.
Newstex ID: IBD-0001-24448904
Originally published in the April 14, 2008 version of Investor's Business Daily.
Copyright (c) 2008, Investor's Business Daily, Inc. All rights reserved. This article is protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Investor's Business Daily, Inc. You may not alter or remove any trademark, copyright or other notice from copies of the content.
