We recently published a list of Jim Cramer’s Latest Stock Portfolio: Top 10 Recommendations. Since Lantheus Holdings Inc (NASDAQ:LNTH) ranks 5th on the list, it deserves a deeper look.
Jim Cramer in a latest program talked about the concept of “suitability” of stocks in investing, which emphasizes the importance of picking individual stocks based on your personal context, circumstances and life goals instead of short-term market movements. Cramer recalled his days at the Harvard Law School and how he used to run to the library to read research reports on companies to dig out information on quality stocks on a week-to-week basis. When Cramer joined Goldman Sachs, an “executive” at the firm introduced him to the concept of suitability, advising him never to recommend stocks to people without knowing what they want out of investing. According to Cramer, that “best semiconductor stock” might not be good for all individuals and therefore it’s necessary to know the “tolerance” and risk appetite of investors.
Answering a question during the program, Cramer said technical analysis, including paying attention to RSI values, is “incredibly” important to him and he does not like to buy stocks if “their chart is bad.”
For this program we watched several latest programs of Jim Cramer and picked 10 stocks he talked about recently. These include stocks he’s bullish on as well as the ones he recommends selling. We have analyzed each stock in detail to see its fundamentals and know what the Wall Street believes about it. We have also mentioned hedge fund sentiment with each company. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Lantheus Holdings Inc (NASDAQ:LNTH)
Number of Hedge Fund Investors: 38
Diagnostic and therapeutic products company Lantheus Holdings Inc (NASDAQ:LNTH) is one of the stocks Jim Cramer is recommending these days. When asked about the stock in a latest program on CNBC, Cramer said the company is “terrific.”
“I wish, honestly, that Danaher would just buy them. I think that will be great news.”
Wall Street is also bullish on Lantheus Holdings Inc (NASDAQ:LNTH). According to data compiled by Yahoo Finance, average analyst price target on the stock is $105, which shows a 32% upside potential from the current levels. Wall Street expects Lantheus Holdings Inc’s (NASDAQ:LNTH) earnings to rise by 37% on a per-annum basis over the next five years.
In May, Lantheus Holdings Inc (NASDAQ:LNTH) posted strong Q1 results. Revenue growth in the period came in at 23% year over year. Lantheus Holdings Inc (NASDAQ:LNTH) also upped its full-year revenue guidance range from $1.41B to $1.445B up to $1.5B to $1.52B. One of the highlights of the quarter was the company’s expectation of mid-20% growth in sales of PYLARIFY, its prostate cancer imaging technology. PYLARIFY makes up 70% of the total revenue of Lantheus Holdings Inc (NASDAQ:LNTH), but the company is expanding into other areas as well. LNTH also upped its full-year EPS guidance, the midpoint of which shows a 14% YoY growth. Based on these factors, the stock looks like a strong buy.
Overall, Lantheus Holdings Inc (NASDAQ:LNTH) ranks 5th on Insider Monkey’s list titled Jim Cramer’s Latest Stock Portfolio: Top 10 Recommendations. While we acknowledge the potential of Lantheus Holdings Inc (NASDAQ:LNTH), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Lantheus Holdings Inc (NASDAQ:LNTH) but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
