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Top 3 Companies in the Biotechnology Industry With the Highest Future Earnings Growth (GHDX, ACOR, LGND)

Published on Thu, 05/30/2013 - 10:31
By Peter Chu

Below are the three companies in the Biotechnology industry with the highest future earnings growth. The growth of earnings per share (next fiscal year estimated vs. current fiscal year estimated) is important to gauge future profitability and relative value. Higher EPS growth generally justifies higher earnings multiples.

Genomic Health (NASDAQ:GHDX) is highest with future earnings growth of 126.8%. Genomic Health, Inc. is a life science company focused on the development and commercialization of genomic-based clinical diagnostic tests for cancer. The Company's diagnostic services provide information on the likelihood of disease recurrence and response to certain types of therapy.

Genomic Health (NASDAQ:GHDX) defies analysts with a current price ($37.54) 4.4% above its average consensus price target of $35.88. The stock should find initial support at its 50-day moving average (MA) of $31.25 and further support at its 200-day MA of $30.86.

Acorda Therapeutics (NASDAQ:ACOR) is next with future earnings growth of 119.9%.

Finishing up the top three is Ligand Pharmaceuticals (NASDAQ:LGND), with future earnings growth of 94.9%.

By Peter Chu
pchu@fnno.com