Entries filed under 'Value Investing'

    Financial Stocks: The Good, the Bad, and the Ugly

    April 16, 2015 2:30 PM by Greg Wachsman

    Skittish about the financial sector? For all the headlines about big banks' legal troubles, investment opportunities can still be found in super-regional banks. 

    In the middle of difficulty lies opportunity, Albert Einstein once said. That thought certainly resonated in a recent presentation I gave on the financial services sector, which arguably has endured more negative publicity in recent years than it did during the Great Depression. 

    Read More »

    Taking the Pulse of Life Sciences and Diagnostics

    April 8, 2015 9:15 AM by Heidi Lawrence

    Next-generation genomic sequencing should not only permit the use of new clinical applications that were not previously feasible but also save the healthcare system money.

    Although speculation about mergers and acquisitions (M&A) has generally supported valuations in the life sciences tools and diagnostics sector, I have advised my colleagues to consider such companies based on select capital deployment and secular growth stories.

    Read More »

    Research in Action: Adapting to "Reimburse-itis"

    April 7, 2015 9:15 AM by Devesh Karandikar

    How cost containment and efficiency initiatives have complicated investing in hospitals, managed care, and medical device companies.

    While decreased uncertainty about healthcare reform pushed price/earnings multiples of some companies in biotech and pharma universe close to peak valuations, the healthcare services and medical devices sector has been wrestling with cost containment and efficiency in the face of increasing pressure on reimbursement from insurers.

    Read More »

    Research in Action: Big Pharma on Steroids

    March 27, 2015 12:20 PM by Lavina Talukdar

    Relentless innovation and ongoing mergers and acquisitions have created significant investment opportunities in the pharmaceuticals and biotechnology sectors. 

    Prescription drugs may be a relatively small significant chunk of national healthcare expenditures each year (see Chart 1), but ongoing innovation and consolidation in the sector has had a powerful effect on valuations. 

    Read More »

    Research in Action:
    Riding Herd on Changing Consumer Patterns

    March 23, 2015 11:18 AM by Lord Abbett Editorial Staff

    While big corporations are struggling to retain customers, nimbler enterprises are seizing the opportunity to steal loyal consumers. Three Lord Abbett analysts assess the opportunities.

    One overarching theme in recent research discussions has been consumer spending, which has been on a healthy trajectory since the financial crisis, especially in recent quarters thanks to rising employment and declining fuel prices. (See Chart 1.) But with many consumers underemployed, cautious and/or continuing to deleverage, the outlook is a mixed bag. Rising employment and lower fuel costs may help beverage makers and innovative restaurant chains, but auto companies face considerable headwinds. 

    Read More »