Halozyme Therapeutics, Inc. (NASDAQ:HALO)

I really can't figure out why this one is virtually ignored by the MF Crew. We've been in since 2016 @ $8.50 and have added consistently ever since. Super competent management; just delve into their response to the failure of PEGPH20 and the pivot to Enhanze. EPS is up over 100% per year since. Latest earnings outlook of about $2 EPS shows them to be slightly undervalued at the moment.

Hi Guys, you might never heard of Halozyme Therapeutics, Inc. The company provides drug-delivery technology and is on the verge of turning profitable for the first time.The stock gained 23% this week and we believe this momentum can continue throughout 2020. Here’s is the reason why.Halozyme’s newfound profits are a result of a recent pivot in its business model. Last November, the company moved away from developing cancer treatments in-house, to focus on its drug-delivery system, Enhanze.The business generates mid-single digit royalties from a handful of products already sold by partners, with more than a dozen others in clinical trials. Management believes this can grow to a $1 billion operation over the next seven years.Halozyme’s new business model is expected to lead to its first ever annual profit of $0.63 a share this year, rising to $1.43 in 2021.
History has shown that buying a company on the verge of sustainable profitability can prove to be a lucrative investment. This could be especially true for Halozyme, which is currently valued at just 15.5x expected forward profits.Insiders agree the stock has more upside potential. Back in March, a member of the Board of Directors bought about $750,000 worth of the company, on the open market. In addition, management has pledged to repurchase about $150 million of shares in 2020.

It’s also worth noting that HALO carries a Smart Score of 10/10 on TipRanks. This proprietary score utilizes Big Data to rank stocks based on 8 key factors that have historically been a precursor of future outperformance.On top of the positive aspects mentioned already, the Smart Score indicates that the company has seen improving sentiment from analysts, hedge funds and financial bloggers. Hope my tips help! Good Luck.