| Stock (Symbol) | Stock Price | |
Allergan (AGN) |
$302 |
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| Data is as of | Expected to Report | Sector |
June 8, 2015 |
Aug 3 – Aug 7 |
Healthcare |
| Sharek’s Take | ||
 Actavis and Allergan have merged together and has formally changed its name to Allergan. But still, the number one thing to focus on with this stock is ACT’s CEO’s prediction on CNBC that the combined company would make $25 in 2017. If AGN makes $25 and gets a 20 P/E the stock will shoot from $300 to $500 a share — perhaps within two years. For a drug company, Allergan is growing rapidly as it has drugs in Phase II and Phase III trails, 8 of its top ten drugs continue to grow at double digit rates, and will also continue to acquire other drug companies. Just last week it bought Kythera Biopharma which has a patented FDA-approved injection to reduce double chins. Allergan is the top stock in my Power Rankings as it combines high levels of certainty, consistency and growth opportunity. I feel this $300 stock is worth $400 now and may be headed to $500 within two years. |
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| One-Year Chart | ||
 Here’s the one-year chart. Nice quarterly profit growth (bottom). The company whipped analyst estimates last qtr so these Estimates may be too low. P/E of 17 is less than the Est LTG of 20%. Everything looks good here. |
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| Earnings Table | ||
 With the Allergan and Actavis now combined forthe first time, sales jumped 59% year-over-year leading to profit growth of 23%.Revenue came in 5% to 10% above expectations last qtr, and the company beat profit estimates by 35 cents.Annual Profit Estimates continue to increase, and $25 in 2017 is starting to take shape. Quarterly profit growth looks solid throughout the rest of 2015. |
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| Fair Value | ||
 This stock has amazing upside potential to go along with high certainty and consistency. Allergan is my top stock to own right now, with +50% upside through 2016. |
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| Ten-Year Chart | ||
 Stock has had an amazing run — especially the past two years. I would normally say the stock is too high due to the steep angle, but the P/E is still very low. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
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Allergan is one of my favorite stocks to own right now as its consistently moving higher and has solid upside to its Fair Value. It’s also a Healthcare stock which is more conservative than some of the other stocks we own. I like ACT a lot and recently purchased more shares. AGN is ranked 1st in the 23 stock Growth Portfolio Power Rankings. Its also first of 9 stocks in the Aggressive Growth Portfolio Power Rankings. |
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Aggressive Growth Portfolio
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