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Here's Why You Should Invest in OPKO Health (OPK) Right Now

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OPKO Health (OPK - Free Report) is expected to gain from continued RAYALDEE strength and focus on research and development (R&D). Further, the company’s strong outlook buoys optimism.

Price Performance

Over the past three months, shares of this Zacks Rank #1 (Strong Buy) company have slipped 0.6% comparing favorably with the industry’s 5.6% decline. The current stock performance is also better than the S&P 500 index’s decline of 8%.

Let us take a quick look at the factors that make OPKO Health a solid pick for now.

RAYALDEE Gains Continue

Within the pharmaceutical business, RAYALDEE is OPKO Health’s leading renal product in the U.S. MedTech space. RAYALDEE is the first and only therapy approved by the FDA and has been witnessing a decent momentum, courtesy of successful efforts by the sales team.

In fact, in the last reported quarter, total RAYALDEE prescriptions skyrocketed 222% year over year.

Focus on R&D

OPKO Health’s strong focus in R&D also buoys optimism in the stock.

The company confirmed to make solid investments in R&D activities in the upcoming quarters. Notably, OPKO expects research and development expenses of $33-$38 million in the fourth quarter.

Outlook Bright

Management at OPKO Health did not provide any guidance. However, for the fourth quarter of 2018, the company expects revenues from services between $185 million and $205 million. Product revenues are expected within $28-$32 million, including RAYALDEE revenues between $6.5 million and $7.1 million. Revenues from transfer of intellectual property are anticipated in the band of $18-$23 million.

OPKO Health, Inc. Price and Consensus

 

OPKO Health, Inc. Price and Consensus | OPKO Health, Inc. Quote

Which Way Are Estimates Treading?

For the fourth quarter of 2018, the Zacks Consensus Estimate is pegged at a loss of 9 cents. The same for revenues is pegged at $246.6 million, marking a 27.3% improvement year over year.

For 2018, the Zacks Consensus Estimate is pinned at a loss of 22 cents. The same for revenues stands at $1.002 billion.

A few other top-ranked stocks in the broader medical space are Veeva Systems Inc (VEEV - Free Report) , Penumbra, Inc (PEN - Free Report) and Becton, Dickinson and Company (BDX - Free Report) . While Veeva Systems sport a Zacks Rank #1, Penumbra and Becton, Dickinson carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Veeva Systems’ long-term earnings growth rate is projected at 19.5%.

Penumbra has a long-term earnings growth rate of 20%.

Becton, Dickinson’s long-term earnings growth rate is projected at 11.5%.

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