Revenue growth and a recent regulatory win are driving shares of United Therapeutics Corporation (UTHR) upward.
The biotechnology company develops multiple treatments for pulmonary arterial hypertension, which is a form of elevated blood pressure in the lungs, as well as treatments for other diseases. Its Tyvaso medicine should benefit from a regulatory approval delay for a competing drug, leaving UTHR without direct competition to hinder its business development efforts.
Financially, the company’s second-quarter performance featured revenue growth of almost 20% and per-share earnings growth of 12%. UTHR’s pipeline is promising too. Analysts suggest the commercialization of new therapies could generate 50% returns or more in the next few years.
It’s no wonder UTHR shares are up 64% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.
Institutional volumes reveal plenty. Recently, UTHR has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in UTHR shares. They reflect our proprietary inflow signal, pushing the stock higher:
Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with United Therapeutics.
Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, UTHR has had strong sales and earnings growth:
Source: FactSet
Also, EPS is estimated to ramp higher this year by +14.8%.
Now it makes sense why the stock has been powering to new heights. UTHR has a track record of strong financial performance.
Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.
United Therapeutics has been a top-rated stock at MAPsignals for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when UTHR was a top pick…sending shares upward:
Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
The UTHR rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in UTHR at the time of publication.
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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.