Jazz Pharmaceuticals plc (NASDAQ: JAZZ) was founded in 2003 and is incorporated and headquartered in Dublin, Ireland. JAZZ is a fully integrated, global biopharmaceutical company whose stated purpose is to provide innovative solutions and life-changing drugs to transform the lives of patients and their families across the globe, and result in longer lives. The company develops and commercializes neuroscience and oncology drugs that improve people’s lives. The company is developing drugs for sleep disorders, epilepsy, hematologic malignancies, solid tumors, neuropsychiatry, and neurodegeneration. In 2021 FDA approved its Xywav (for narcolepsy) and Vyxeos drugs, and it has a successful launch Rylaze. Among its other drugs are Vyxeos, Zepzelca, Erwinaze and many others in clinical trials. JAZZ operates or partner with companies in close to 75 countries, and its global footprint and facilities allow the company to swiftly achieve and scale their medicines.
JAZZ’s growth has been expanding for 6 consecutive years and from 2016 through 2021 it has a CAGR of 16%. In November 2022 it raised its total revenue guidance to $3.65 billion. Moreover, in 2021, revenues exceeded $3 billion and the 2025 revenue target is forecasted to hit $5 billion. Also, in 2022 greater than 65% of net product sales were driven by newer products. Earnings- per-share (EPS) have accelerated since mid-year. JAZZ does not provide any dividends at this time.
In 2022 JAZZ gained 25% vs. a loss in the S&P 500 of 19%, a solid relative strength performance in a tough market environment. JAZZ’s all-time high of $192 occurred on July 27, 2015, and it almost pierced it on June 14, 2021, reaching $189 intra-day before fading to an intra-day low of $86.88 in mid-June. Since then, it has bounced back to the $156 area which it has gravitated to seven times since 2014. The stock price is currently above its 40-DMA and appears to be attempting a take on the $180 area. Therefore, this may be an opportune time to take a position in this dynamic company. JAZZ trades about 567,000 shares a day, certainly sufficient for traders and investors alike.
The companies will webcast its presentation at the 41st Annual J.P. Morgan Healthcare Conference with its chairman and chief executive officer providing the commentary. This upcoming event is scheduled for Monday, January 9, 2023, at 3:45 p.m. PST / 11:45 p.m. GMT. A live audio webcast and replay can be accessed at the Investors section of the following website: https://www.jazzpharmaceuticals.com. Interested traders and investors may want to attend to capture the latest information on the company.
The VectorVest ratings of JAZZ are as follows:
- Fair Upside Potential: The Relative Value (RV) rating focuses on a stock’s long-term, three-year price appreciation potential. The current RV rating for JAZZ is 0.95 – slightly below the 1.00 level on a scale of 0.00-2.00. VectorVest’s current value of the stock is $142.64 compared to its current price of $156.36 , therefore it is considered fully valued.
- Fair Safety: The Relative Safety (RS) rating is based on the company’s business longevity, financial predictability/consistency, debt-to-equity ratio, and additional risk parameters, including price volatility. The RS rating of 0.85 is slightly below average, indicating a moderate risk.
- Good Timing: The Relative Timing (RT) rating focuses on the price trend over the short, medium, and long-term. The components include price direction, dynamics, and price magnitude of price changes over daily, weekly, quarterly, and yearly comparisons. JAZZ has an above-average RT rating of 1.21 As the accompanying chart shows, JAZZ hit a near new all-time high on June 14, 2021, and is above its 40-day moving average.
- Poor Comfort Index: This index measures the consistency of a stock’s long-term resistance to severe and lengthy corrections. This index compares the individual stock to the fluctuation of the VectorVest Composite and is measured on a scale of 0 to 2.00. At a level of 0.72, clearly, JAZZ has a below-average rating. This low rating is not surprising, as it is a very volatile stock in a popular market sector.
- Good Earnings Growth Rate (GRT): JAZZ’s 10% forecasted growth rate is slightly above average and is measured over a forecasted three-year period. This fundamental factor is calculated in the VectorVest software so you don’t have to do the work. Its chart highlights the up-trending earnings and price movement. It has an $18.21 forecasted earnings per share.
- Fair VST Score: The VST Master Indicator ranks nearly 9,200 stocks from high to low and brings to the top of the rankings those stocks with the highest VST scores. JAZZ score is 1.03, which is better than most stocks’ score in this bear market. Using VST enables users to determine stocks that are acting better than average, as well as the opportunity to find the cream of the crop with a few mouse clicks.
All things considered, is this a good time to buy JAZZ, as it is only 6% away from its April 2022 high? You may be surprised at the current VectorVest rating, knowing that only 14% of all the 9,150 stocks are currently rated a “Buy”. To see the JAZZ rating, you can analyze JAZZ free using VectorVest to get the recommendation.