| Stock (Symbol) | Stock Price | |
Allergan (AGN) |
$91 |
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| Data is as of | Expected to Report | Sector |
November 12, 2013 |
Feb 3 – Feb 7 |
Healthcare |
| Sharek’s Take | ||
 Allergan’s RESTASIS drug might lose its patent protection in 2015, and that news has kept AGN under pressure this year. I have no new news to report on Allergan’s plan to keep the drug to itself, so let’s look at the numbers. AGN should sell for 22 times earnings under normal conditions. Right now the P/E is 17 and that gives the stock 31% upside to its 2014 Fair Value. Allergan is a great franchise to own, as the company has proven it can consistently grow profits — and its stock — at a double-digit rate over the long-term. Still what is unknown is what the generic version of RESTASIS will do to Allergan’s profits in 2015 and beyond. |
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| One-Year Chart | ||
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| Earnings Table | ||
 Profits rose 16% last quarter, revenue grew 10%.AGN beat the street by 3 cents last quarter, but this measurement doesn’t matter much right now. Annual Profit Estimates have remained steady. Quarterly growth looks good. |
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| Fair Value | ||
 I love this profit history table. Profits up each and every year. Although AGN is considered a 13% grower, the stock’s usually had a P/E much higher than this. Investors trust Allergan, and I feel the stock will eventually get its 22 P/E back. |
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| Ten-Year Chart | ||
 Great ten-year chart as well, but the recent dip in the stock price has taken the Yearly Stock Growth rate down below 10%. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
22 of 25 |
Allergan is a great franchise for conservative investors to own. This company, and the stock, can grow in the teens over the long-term. Losing RESTASIS patent protection could bring profits down a click, but then teens growth would resume. AGN is not timely right now, it’s ranked 22nd of 25 stocks in the Growth Portfolio Power Rankings. It’s not a good fit for the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |
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I bought AGN at $85 and the stock’s up a little from that purchase, but now as time passes and the stock keeps basing, I’m getting anxious. Estimates look solid, the numbers are here for AGN to have a good 2014.