The following are today’s upgrades for Validea’s Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
HARMONY BIOSCIENCES HOLDINGS INC (HRMY) is a small-cap growth stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Harmony Biosciences Holdings, Inc. is a commercial-stage pharmaceutical company. It is focused on developing and commercializing therapies for patients living with rare neurological diseases as well as patients living with other neurological diseases who have unmet medical needs. Its product, WAKIX (pitolisant), is a first-in-class molecule with a novel mechanism of action designed to enhance histamine signaling in the brain by binding to H3 receptors. Its WAKIX is developed for the treatment of excessive daytime sleepiness (EDS) in adult patients with narcolepsy and treatment of cataplexy in adult patients with narcolepsy. It also provides HBS-102, an investigational compound, which is a melanin-concentrating hormone receptor 1 (MCHR1) antagonist that targets MCH neurons in the brain. It also develops ZYN002, a pharmaceutically manufactured synthetic cannabidiol. It is also focused on the rare epilepsy franchise in its expanding late-stage pipeline of CNS assets: EPX-100 and EPX-200.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
EARNINGS YIELD:NEUTRALRETURN ON TANGIBLE CAPITAL:NEUTRALFINAL RANKING:FAIL
Detailed Analysis of HARMONY BIOSCIENCES HOLDINGS INC
HRMY Guru Analysis
HRMY Fundamental Analysis
Joel Greenblatt Portfolio
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About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two — and only two — fundamental variables. The “Magic Formula,” as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500’s 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.