Four More Medical Stocks for Investors

Just when you thought we had examined medical stocks from every possible angle...have you looked at the stocks of the Medical Laboratories and Research industry group -- an industry with a PowerRating of 8?

Over the past few months at PowerRatings.net, we've spotlighted a number of healthcare and medically-related companies -- from major drug manufacturers and hospitals to health plan administrators and biotechnology companies. One industry that is related to these others but has not yet been fully explored is the Medical Laboratories and Research industry -- essentially the R&D wing of the medical industry.

The Medical Laboratories and Research industry has a PowerRating of 8. Industries with PowerRatings of 8, based on our research, have produced average annualized returns of more than 20% from 1995 to 2006. Compare this performance to that of the average industry, which has managed average annualized returns of 14.61%.

This industry group has four stocks at the top with high PowerRatings of 8 or 9. Each of these stocks could serve as an excellent alternative to some of the other medically-related stocks that are available to investors. Investors with heavily concentrated stock portfolios in need of diversification should feel comfortable in picking from among these high PowerRating stocks -- all of which are more likely than the average stock to be higher one year from now.

First up is Quest Diagnostics, Inc. (DGX@DGX | Quote | Chart | News | PowerRating). With a PowerRating of 9, Quest Diagnostics is the highest rated stock in the Medical Laboratories and Research industry group. Stocks with PowerRatings of 9 have been higher one year later more than 79% of the time. Compare this to the average stock, which based on our research going back to 1995, has been higher one year later less than 68% of the time.

Moreover, our research reveals that 9-rated stocks tend to outperform the average stock after one year. While the average stock has tended to gain 12-13% in a year's time, stocks with PowerRatings of 9 have tended to gain, on average, more than 18% after one year.

Quest Diagnostics is in the business of providing diagnostic testing and services to healthcare professionals. The company has more than 2,000 patient service centers and more than 30 regional and testing laboratories in the United States, as well as a significant international presence. Quest Diagnostics trades at just under 21 times earnings. The stock is in the upper half of its 52-week price range from $58.63 to $32.86.

Laboratory Corporation of America (LH@LH | Quote | Chart | News | PowerRating) is one of the 8-rated stocks in the Medical Laboratories and Research industry. The company is an independent clinical laboratory that conducts clinical laboratory tests including both routine testing, diagnosis and disease treatment. Laboratory Corporation of America has a P/E of 20.30. The stock is trading in the middle of a 52-week price range from $82.32 to $65.13.

Another stock in this group with a PowerRating of 8 is OSI Pharmaceuticals (OSIP@OSIP | Quote | Chart | News | PowerRating). OSI Pharmaceuticals focuses on discovering, developing and marketing molecular-oriented therapies in the treatment of illnesses ranging from cancer to diabetes. The company's stock is trading in the upper half of its 52-week price range from $52.00 to $28.68.

The last of our high PowerRating, Medical Laboratories and Research stocks is Pharmaceutical Product Development, Inc. (PPDI@PPDI | Quote | Chart | News | PowerRating). Pharmaceutical Product Development has a PowerRating of 8. The company is based out of North Carolina and operates as a worldwide drug discovery and development research organization. Clients and partners of Pharmaceutical Product Development include companies involved in biotechnology, pharmaceuticals, and medical devices, as well as in academia and the government. The company has a P/E of 35.50 and is trading within cents of its 52-week high of $49.39.

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