Varian Medical Systems, Inc. (VAR)

ZachGruver (< 20) Submitted: 8/26/08 3:38 PM : Start Price: $62.98 VAR Score: -7.72

Growth is strong, with recent quarterly earnings rising by 49% (.58 versus an estimated .46). The need to treat cancer will increase in the coming decade, and with Varian possessing a 60% share of the worldwide imaging market and a 70% share of the U.S. imaging market it's share price should increase tremendously. Additionally, they have a screener that screens incoming cargo in international ports. Varian has around 350 port screeners installed around the world, but under 30 of them are in the United States. Under 4% of the incoming cargo in the United States is screened, so Varian also has a lot of growth potential surrounding these machines. I think that while Varian currently has a high P/E ratio growth will continue to accelerate, making Varian a very attractive name at these levels.

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