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5-Star Stocks Poised to Pop: 3SBio

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 7:01PM

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Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese biotech 3SBio (NASDAQ:SSRX) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at 3SBio's business, and see what CAPS investors are saying about the stock right now.

3SBio facts

Headquarters (founded)

Shenyang, China (1993)

Market Cap

$125.6 million

Industry

Biotechnology

TTM Revenue

$33.5 million

Management

Co-Founder/Chairman Dan Lou
Co-Founder/CEO Dr. Jing Lou

Compound Annual Revenue Growth (average last two years)

39%

Competitors

Schering-Plough (NYSE:SGP)
Novartis (NYSE:NVS)

CAPS members bullish on SSRX also bullish on

Apple (NASDAQ:AAPL)
Google (GOOG)

CAPS members bearish on SSRX also bearish on

JA Solar (NASDAQ:JASO)
Solarfun Power (NASDAQ:SOLF)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 411 of the 425 members who have rated 3SBio -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include quinpeung and pedrokoz.

Last week, quinpeung cited 3SBio's agreement to develop an iron deficiency drug as particularly promising: "[T]hey have a deal with [AMAG Pharmaceuticals (NASDAQ:AMAG)], so my logic is that if Ferumoxytol hits, SSRX increases in value."

In a pitch from two days ago, pedrokoz shares that sentiment, highlighting the stock as a well-managed, financially sound bargain:

"On every fundamental basis this company is cheap. From a growth perspective it is VERY cheap. Management seems to have a better track on managing in an economy and market that most do not understand and have done a remarkable job in growing it conservatively to date-a sign of good management. There seems to be a great deal of respect to equity holders and manage their balance sheet accordingly."

What do you think about 3SBio, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 3SBio and Google are Motley Fool Rule Breakers picks. Apple is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

3SBio Inc. Stock Quote
3SBio Inc.
SSRX
Apple Inc. Stock Quote
Apple Inc.
AAPL
$172.10 (2.14%) $3.61
Novartis AG Stock Quote
Novartis AG
NVS
$85.68 (0.12%) $0.10
Hanwha Q CELLS Co., Ltd. Stock Quote
Hanwha Q CELLS Co., Ltd.
HQCL
AMAG Pharmaceuticals, Inc. Stock Quote
AMAG Pharmaceuticals, Inc.
AMAG

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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