| Stock (Symbol) | Stock Price | |
Allergan (AGN) |
$89 |
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| Data is as of | Expected to Report | Sector |
September 10, 2013 |
NA |
Healthcare |
| Sharek’s Take | ||
 Allergan is a solid mid-teens grower we got at a discount price, but the stock hasn’t done much since I got in June 25th. AGN is up from $85 to $89 and some of my other stocks are red hot. Allergan’s RESTASIS drug might lose its patent protection in two years, and generic copies would take away profits. Still, Botox is twice as big a seller as RESTASIS, and this company has other drugs so the hit won’t be that bad. This stock is good buy for patient investors waiting for a solid franchise to bounce back. |
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| One-Year Chart | ||
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| Earnings Table | ||
 Allergan’s revenue grew only 7% last quarter but profits increased 14% (this is normal).
AGN met estimates. This is a stable company in regards to earnings. Quarterly growth looks decent. I can see why this stock isn’t doing anything. The cloud of the generic RESTASIS is holding the stock back some, and the profits aren’t powerful enough to push it. |
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| Fair Value | ||
 Notice during the last three years AGN has had an average P/E of 22. Yes, the company may have to lower estimates in the future, but that was baked in when I bought the stock and after that it looks like earnings can continue to increase at a rate in the mid-teens. |
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| Ten-Year Chart | ||
 Yearly profit growth of 15% a year for a decade. The stock would have grown at that rate too if it wasn’t for this little mess. Profits have grown every-single-year. Just look at that. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
21 of 24 |
I feel Allergan is a great conservative stock to buy-and-hold. It may have to ratchet down earnings estimates and that cloud is hanging over the stock. Not timely for aggressive investors who can make quick money elsewhere.
I’m moving AGN down from 13 to 21 in the Growth Portfolio Power Rankings. It’s not good enough for the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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I bought in right after the big drop. The stock quickly got over $90, but now has settled back to around $87. From $85 to $92 was a good gain, now $85 to $87 is boring me. Quarterly growth is good, and the P/E of 19 is lower than the 22 I think it’s worth.