This pharmaceutical company is expected to grow at an annual rate of 31.67% for the next five years. It beat earnings estimates by $0.26 last quarter and coverage of its shares was just initiated at Argus with a ‘Buy’ rating.
Ligand Pharmaceuticals (LGND)
From Cabot Growth Investor
Ligand Pharmaceuticals (LGND) is a stock we’ve written about often in the past. The company’s business model is unique, as it conducts early-stage research on potential drugs and then licenses those ideas to others who pay for trials and, if the drug hits the market, pays royalties.
Ligand also has a couple of popular research platforms that generate milestone payments (including $47 million from Wuxi Pharmaceuticals a couple of weeks ago) and, eventually, royalties as any treatments developed hit the market.
Quarter-to-quarter numbers can be lumpy, but the overall growth trend is solid, and the stock is strong. Please note that Ligand, while higher priced, trades just 330,000 shares per day, so try not to put in overnight orders to buy (which isn’t the best practice with any purchase).
BUY.
Michael Cintolo, Cabot Growth Investor,www.cabotwealth.com, 978-745-5532, July 11, 2018