3 Reasons to Buy Questcor

Winter is approaching fast, but Questcor Pharmaceuticals (Nasdaq: QCOR  ) bears don't appear to be going into hibernation any time soon. Recent concerns sparked by a clinical policy bulletin at Aetna have some investors worried that the good times are nearly over for the company's lead drug Acthar. To make matters worse, the company's marketing practices are also under investigation by the U.S. government.

While investors should take stock of such concerns, it's also important to understand the bullish side of the story. I took a look at both ends of the argument in my new premium report on Questcor, providing three reasons to buy and three reasons to sell the stock. Here's a look at three reasons investors should think about buying the stock.

  • The company has focused on expanding Acthar's use in both new and existing indications, which should help to support paid prescription growth going forward while also providing some (albeit slim) diversification benefits.
  • The company has exhibited a strong amount of operating leverage, consistently growing revenue at a much faster rate than expenses, leading to expanded profit margins.
  • With a newly initiated dividend, Questcor provides investors with a healthy degree of current income (the stock yields more than 3%) to go along with a strong growth profile.

I hope you enjoyed this sneak peek at our brand-new premium research report on Questcor. To see three reasons to sell -- as well as an in-depth view of the company and a full year of analyst updates -- claim a copy today by clicking here now.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2114524, ~/Articles/ArticleHandler.aspx, 9/19/2014 12:08:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement