Health-care stocks have been resilient throughout the recession and the bumpy recovery. That’s because consumers may cut back on discretionary spending, but it’s never wise to cut back on trips to the emergency room or prescription drugs that maintain your quality of life. What’s more, the health-care sector is one of the few places you’ll find job growth these days — proving that the industry is on the rise despite a bumpy stock market in 2011.
If you want to get the biggest bang for your buck as an investor, you should definitely hold a position in health-care stocks. And if you really want to see your investments explode, you should consider small-cap medical stocks that are seeing massive growth — and massive profit potential. These up-and-comers can pop overnight on a buyout offer, big contract or the FDA approval of an innovative new treatment.
To help you get your share, keep your finger on the pulse of these five top health-care penny stocks:
Synergetics USA (SURG)
Synergetics USA (NASDAQ: SURG) is a medical device company that supplies its clients with precision microsurgical devices. Since January, SURG stock is up 148%, compared to gains of 11% and 7.3% for the NASDAQ and Dow Jones. Additionally, SURG has posted a net profit margin of 11% for 2010. Currently trading at $3.25, Synergetics is an affordable stock that could potentially add value to your portfolio.
Metropolitan Health Networks (MDF)
Metropolitan Health Networks (AMEX: MDF) provides medical care for Medicare Advantage beneficiaries in Florida. Year-to-date, MDF has gained 109%, compared to smaller gains by the broader markets. MDF stock has also outperformed earnings estimates for four consecutive quarters and is projected to earn 13 cents per share this quarter. Priced at $4.16, MDF is trading near its 52-week high of $4.52, and is a penny stock worth purchasing now.
Simulations Plus (SLP)
Simulations Plus (NASDAQ: SLP) develops software for use in pharmaceutical research and education. Over the past 11 months, SLP stock has jumped 97.1%, or $1.34. SLP has also posted strong earnings, having met or exceeded earnings estimate the past three quarters. In its last income statement, this penny stock reported quarterly revenue growth of 14.9%. SLP stock is an affordable purchase at its current trading price of $2.72.
Caliper Life Sciences (CALP)
Health-care company Caliper Life Sciences (NASDAQ: CALP) sells its products to pharmaceutical companies, biotechnology companies, government institutions and the life sciences research community. Since January, this penny stock has climbed an impressive 98.8%, compared to smaller gains by the broader markets. CALP stock currently trades at $5.05, just one cent below its 52-week high. While CLP may be the most expensive stock on this list, it still is an inexpensive investment opportunity.
Columbia Laboratories (CBRX)
Columbia Laboratories (NASDAQ: CBRX) develops products that provide solutions for infertility. In 2010, this penny stock is up 21.3%. More impressive, CBRX has gained nearly 44% since the beginning of August. In its last income statement, CBRX reported a quarterly revenue growth of 12.2%, year-over-year. Trading at $1.31, CBRX is far removed from its 52-week low of 65 cents a share, and rounds out my list of top health-care penny stocks to buy.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.