The markets that have proved to be unaffected by crisis are the pharmaceutical and IT industry. Following the trends of investments, we may conclude that these companies have been growing year after year. This is not surprising at all because, even though medical sciences show continuous development, we use more medicines and the number of chronic patients has risen in recent years, without showing a downward trend. The IT sector is growing because the Internet is getting bigger with the current 2 billion users and it is expected to reach 7 billion users by 2020. So, the market will triple in size. If we look at the facts objectively and wisely consider the growth of stock, we can invest our money profitably by choosing the right companies. Here is a list of companies which show huge growth every year, and judging by this growing trend, they will not stop there. These companies have trustworthy management and they invest in right products.
Amgen is an American multinational company which is also the world’s largest independent biotech firm. The most revolutionary and most popular product of this company is Neulasta, which is a medicine that prevents infections in patients under the influence of chemotherapy. They also manufacture Enbrel, whose purpose is blocking of tumor necrosis factor and is used in treatment of autoimmune diseases.
Besides these two, they have a portfolio of products widely used by general public. If we take into consideration that a significant percentage of population suffers from either malignant or autoimmune diseases, this company surely knows how to invest where it’s needed. What follows is a 5-year worth analysis of share value.
- In 2011 the beginning share price was $54, followed by a stable increase over the course of this year and by the end of the period the share price was at the level of $64, which means that the growth percentage was 18% for the entire year.
- In 2012 the starting price was $64 and after the aggressive growth, the price level by the end of the year was at $88.
- In 2013 the starting price level was at $88 and at the end it reached $114. Some minor fluctuations were noticed during the year but the overall percentage of increase was around 20%.
- In 2014 the starting price level was at $114 and finally finished at $158 per share, which was its record high for the previous couple of years.
- The year of 2015 started with $158 and after the shares reaching their peak, which was at $178, their value decreased to $168, but it is increasing again. The results of the last quarter were satisfactory and they show a steady growth of their value at 4% and with earnings of astonishing $5.38 billion, while EPS has increased by 8% to $2.57. However, according to Amgen’s statement, it is $0.15 below the predictions.
Amgen’s management is dedicated to convincing the public of a positive outcome by stating that they decreased the number of employees and by that saved $1 billion a year. Researching costs are decreasing year by year with a rate of 6%. Management is trying to provide more funds that will be reinvested in production of future medications. Their leading product, Neulasta, earns them around $1.16 billion and has affected the increase of the share value by 8%. With the development of a new injection which allows the patients to receive treatment at home, it is crystal clear that, starting with this medication and followed by others, this company is conquering the major part of this market segment. All financial resources that the company has not only saved but also acquired by selling new and improving current medications are showing that in the following period of up to 5 years, this company will be oriented to acquiring smaller pharmaceutical companies, and their latest products are almost a secure promise that their profits will keep rising.
Do not miss out on this opportunity to invest in this long-term deal in a company that has outstanding medications meant for fighting some of the leading health problems of the modern society. The potential of a declining demand or sales is very low. The management of this company is highly trustworthy and they seem to have the ability necessary to successfully invest funds in superior future projects, and most importantly for investors, to mind their spending regardless of their current positive cash flow statement.
This company is involved in research, production and selling of biopharmaceuticals for the medical institutions throughout China. It manufactures albumin, which increases blood volume, and immunoglobulins, which prevent illnesses and infections. This company is specialized in production of blood components and it has a secure market. Blood deficit is an ongoing global problem and the blood production is, at this moment, a smart investment into the future.
An overview of the shares in the last 5 years:
- In 2011, starting at $16 per share, continuing with a stable increase and a sudden decrease which lowered the share value to only $10.
- In 2012, starting at $10 per share and ending it at $17 per share, which gave their investors a good reason to have trust in them, since the worth of the company increased by 70%.
- In 2013, starting at $17 and ending at $28 per share. This was the second year in a row that the company had a substantial growth, which strengthened the trust of the investors.
- However, the year of 2014 brought incredible results. The shares skyrocketed by the end of the year at $64 per share, which improved the position of the company, aiming to become one of the greatest biotech companies in the world.
- The year of 2015 has been one of the greatest for this company, since it climbed from $64 to $122 per share. This exponential growth was a proof that the investors were satisfied. It was followed by a small decline in value, which shouldn’t be a thing to worry about if we consider that from 2012 to this very moment, the company’s value has increased for almost 1000%.
China Biologic Products has announced its reports of consolidated earnings for the first six months of 2015. In the second quarter they had net sales worth $80 compared to the last year’s $60. Most of the earnings are acquired by selling main plasma components, which in the first 6 months brought over $150 compared to last year’s $116, at the growth rate of 20%. Earnings per share have increased from $1.47 to $1.99. Cash flow reserves have shrunk since they had major investments this year.
What to say about a company that witnesses exponential growth and continually brings larger income to its investors year after year. It is smart to use this short decline of value of shares and invest in this company, which will most certainly be one of the leading biotech companies in the world in a period of only a few years. Taking into consideration the size of the Chinese market as well as the possibility to penetrate other foreign markets, this company has a clear road ahead and a bright vision to follow.
Fleetmatic was founded in 2004 and provides software-as-a-service fleet management. In 2010 the company has acquired SageQuest, after which it implemented GPS fleet management system for the big transport companies. This system, which allows fleet operators to track all of their vehicles, is used all over North America.
The company issued shares in 2013 and since then, its value has experienced dramatic ups and downs. In 2013, the price was $25 per share and in 2015 the price is currently $50, which is an increase of 100% in just two years. The seriousness of this company is evident from the fact that in the beginning there were 31,000 vehicles subscribed to this program, and now there are 625,000 system users. In the second quarter of this year, the profit rose to $68.6 million, which is an increase of 24% compared to the last year. EPS reached $0.33, which is an increase of almost 100%, compared to the last year when EPS was only $0.18. EBITDA was $21.2 million this year. An interesting fact is that the company lowered the subscription price, and hence attracted hundreds of thousands of new users.
Should you invest in this company? Most certainly. Technologies are developing and soon each industry will have its own control system. If we take into account the fact that this company has no serious competitors and that the market of transportation in the USA is growing bigger each year, we can see that this system will just grow in value. However, we know that the value of shares was $50 in 2013 and that it went down to $20-$30, so we can conclude that it would be smart to wait for some major decline in order to buy a greater amount of shares. On the other hand, according to the company’s predictions, the profit will double by the end of this year, so maybe now is the perfect time to buy these shares. The number of system users is definitely growing; therefore, the growth of the company is inevitable.
From the period of 2010 to 2012, these companies almost tripled their stock prices. In the follow-up of this article, you can read about three other companies you should invest in.