Why Ligand Pharmaceuticals Inc (NASDAQ: LGND) Stock is a Buy

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Ligand Pharmaceuticals Inc (NASDAQ: LGND) is a biopharmaceutical company focused on developing or acquiring technologies that help pharmaceutical companies discover and develop medicines. Ligand business model is based upon the concept of developing or acquiring royalty revenue generating assets and coupling them with a lean corporate cost structure. The company partners with the world's leading pharmaceutical companies such as Novartis, Amgen, Merck, Pfizer, Celgene and Gilead among others. 

Ligand Pharmaceuticals Inc. (NASDAQ:LGND) recently beat on both the top and bottom lines. The biotechnology company reported earnings of $1.54 per share on revenue of $45.7 million compared to analyst estimates of $1.03 per share on revenue of $42.9 million. Ligand Pharmaceuticals (NASDAQ:LGND) had a net margin of 73.78% and a return on equity of 26.17%. Ligand Pharmaceuticals' revenue was up 36.8% compared to the same quarter last year. 

Ligand raised 2018 guidance a little for material sales and introduced 2019 guidance for the first time. Ligand expects revenue in 2019 to be at least $212 million, with up to an additional $40 million of potential milestone and license payments. With projected revenue of $212 million, adjusted earnings per diluted share for 2019 is estimated to be approximately $5.50.

It could rise more if they buy back more shares or receive some milestone payments. Ligand isn’t actually a growth stock at this rate but a royalty stock with windfall payments from drugs like Wuxi and some other milestones drugs with upside possibilities for many years to come. A lot will also depend on whether Promacta and Kyprolis continue to boom in 2019 and if they do we believe LGND stock is currently undervalued. 


These are a few of the reasons Ligand Pharmaceuticals Inc (NASDAQ: LGND) investment grade on the Hade Platform has risen steadily, making it a Top 100 stock. Ironically, this stability in overall rating happens during a time when the overall market is falling, and as our investment grades as an average have consistently declined for the last four months, effectively predicting a correction. 

With overall investment grades still lower, we suggest holding large sums of cash and being very selective when making investment decisions. According to LGNDstock’s current grade, it might very well be one of those selective opportunities. Why should you trust our ratings? The Hade Platform has proven over the course of three years through the application of Deep Learning Algorithms  (DLA)andArtificial Intelligence (AI)that it consistently outperforms Wall Street consensus estimates (63%) and major benchmarks such as the S&P 500 (250%). Access our premium services and start beating the market. 

Free users on HadePlatform can build a watchlist of stocks and access investment grades from our database of more than 4,000 securities. Premium members can access the platform to get an instant look at which stocks rate highest for value, growth, dividend, and which have the greatest short-term momentum, thereby allowing members to identify areas of opportunity. Premium services include interest trendsrisk analysismachine learning predictions, Top 100 stocksMatriX Portfolio   and more.


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