United Therapeutics Corp

Is United Therapeutics Corp (UTHR - Analyst Report) just what the doctor ordered? Growth rates are high and still climbing but why are shares so cheap right now?

Company Description

United Therapeutics Corp is a biotech company that makes unique products for patients with chronic and life-threatening conditions.

A Great Quarter

On Oct 27 United reported a 20% jump in revenues, to $201.7 million, driven by an increasing number of patients being prescribed its products.

Net income more than doubled to $84.4 million. That put earnings per share at $1.23, 50 cents higher than the Zacks Consensus Estimate. United now has back to back earnings surprises.

Positive Outlook

United went on to reaffirm its full-year revenue guidance and also announced a $300 million share buyback program. Analysts liked the news and unanimously raised estimates.

The average forecast from analysts polled by Zacks is up 68 cents, to $3.48. Next year's consensus is up 49 cents, to $3.90. Last year the company made $1.88 per share, putting expected growth rates at 85% and 12%, respectively.

Good Value

Along with those impressive growth rates, shares are also showing a good value. The forward P/E is just 11 times and that puts that PEG ratio at 0.4.

The Chart

Back in August shares were dumped after a new drug fell short of expectations in an FDA study. But, that is only for the oral version. The inhalable and injectable versions are still on the market.

Right now shares look oversold and could be a good target for bottom fishers.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service

Read the full analyst report on UTHR