Top Stock to Buy #3 – Dr. Reddy’s Laboratories (RDY)
India-based Dr. Reddy’s Laboratories (RDY) manufactures and sells generic pharmaceuticals and ingredients. S&P highlights RDY as “one of the stronger growth stories in the global generics space.” It has 65 new generic FDA filings including a new version of Singular, Lipitor, Arista and Propecia. It has extended its reach into Russia and other emerging markets, and it has also increased its U.S. sales.
Earnings for fiscal year 2013, ended in March, were $1.80. Consensus EPS estimates for fiscal 2014 are $1.99, and $2.35 for fiscal 2015.
The stock is completing a huge 18-month saucer with the strong possibility of a breakout at $39-$40. Buy on the actual breakout with a target of $48. Long-term investors should hold RDY for participation in its expansion into emerging market countries.