Using Zack's screens similar to yours, although I throw some other stuff in once in awhile (I like price to book to be below 2.5, at least four analysts to cover, and the average rating to be a "buy" or better, growth to trailing PE to be better than 1.25), I found a real interesting gem - UroCor (UCOR) - after following up on the handful of sceening "survivors" - the entire write up is at members.aol.com - but here is the summary:
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UroCor Inc. (UCOR) is a "micro-cap", with a market capitalization of around $75 million. It has a trailing four quarter price-to-earnings ratio of 22.5, and a price-to-earnings ratio on consensus estimated fiscal year 1998 earnings of 16 (fiscal year 1998 ends 12/98). Long term revenue growth has exceeded 25% a year.
The four analysts who cover the company have a mean long term (5 year) earnings growth rate estimate of 37.2% annually. Two of the analysts have a "strong buy" on the company, and two of the analysts have a "buy" recommendation. We estimate long term earnings growth at 30% - the lowest estimate of all the analysts who cover the stock. The long term growth rate to forward price-to-earnings ratio thus is a very strong 1.9.
With no long term debt and a price-to-book ratio of 1.3, UCOR is financially sound and has a well thought out business strategy discussed below - and has significant upside potential with limited downside risk taking into account the limited size and resources of this company.
Company and Sector Overview
UCOR focuses on a segment of the health care market that is highly specialized and concentrated - urology. Around 7,500 doctors practice in this area in the U.S., and the practice is unique in that one individual usually acts as diagnostician, surgeon, and oncologist for their patients.
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Best - Joe |
