Is Wall Street Undervaluing LNTH Stock?

LNTH: Lantheus logo
LNTH
Lantheus

Here is why we think Lantheus (LNTH) deserves consideration as a value stock.

  • Reasonable Revenue Growth: 5.7% LTM and 34.3% last 3 year average.
  • Cash Generative: Nearly 31.1% free cash flow margin and 28.9% operating margin LTM.
  • No Major Shocks: LNTH has avoided any revenue collapses in the last 3 years.
  • Modest Valuation: Despite encouraging fundamentals, LNTH trades at a PE multiple of 13.9
  • Opportunity vs S&P: Compared to S&P, you get lower valuation, higher revenue growth, and better margins

As a quick background, Lantheus provides diagnostic and therapeutic products, including ultrasound agents and radiotherapeutics, to assist in diagnosing and treating heart disease, cancer, and other conditions.

  LNTH S&P Median
Sector Health Care
Industry Health Care Supplies
PE Ratio 13.9 24.1

   
LTM* Revenue Growth 5.7% 5.1%
3Y Average Annual Revenue Growth 34.3% 5.3%
Min Annual Revenue Growth Last 3Y 5.7% -0.1%

   
LTM* Operating Margin 28.9% 18.7%
3Y Average Operating Margin 21.0% 17.9%
LTM* Free Cash Flow Margin 31.1% 13.4%

*LTM: Last Twelve Months

But do these numbers tell the full story? Read Buy or Sell LNTH Stock to see if Lantheus still has an edge that holds up under the hood.

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That is one way to look at stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure

Stocks Like These Can Outperform. Here Is Data

For 65 similar value stocks chosen as of mid 2024, consider the following stats for the subsequent 1 year period.

  • Average peak return of 39.3% vs 14.4% for S&P, with maximum peak return of 133%
  • Win rate of 60%; win rate represents % of stocks with positive return
  • Average 1-year return of 14.6%, similar to S&P’s despite tariff instability

But Consider The Risk

That said, LNTH isn’t immune to sharp declines. It fell about 48% during the 2018 correction, 56% in the Covid pandemic sell-off, and nearly 45% through the inflation shock. Even with its strengths, LNTH can take big hits when the market turns. Solid fundamentals matter, but steep drops still happen.

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read LNTH Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.