In Focus – ABAX

Determining whether a company is one of the best stocks to buy now requires a detailed examination of that company. In this report we will be doing that detailed examination of the firm Abaxis.

Background

Abaxis (ABAX) develops, manufactures, markets, and sells portable blood-analysis systems for use in veterinary or human patient-care settings. The company markets its primary product for veterinary use under the name Vet scan, and for human use under the name Piccolo. The veterinary market accounts for about 80 percent of sales. ABAX is headquartered in Union City, California.

Stock Fundamentals

ABAX is a classic growth stock. It has had tremendous growth and will probably continue to have tremendous growth. It uses very little debt, just recently started paying a modest dividend, and although it has a low beta, its price can be erratic.

Unfortunately, it is like a classic growth stock in another way. It has a very high price. It has a P/E ratio of roughly 40. It has a price-sales ratio that places it in the top quartile of all the stocks we cover. And in terms of its cash flows, its multiple is even higher.

As we mentioned above, future growth for this company looks promising, and ABAX is very profitable. But overall its fundamentals are not compelling enough to warrant anything higher than an average grade. We rate ABAX a hold, and we do not consider it one of the best stocks to buy now.

Stat Sheet – Abaxis    4/29/16

Ticker ABAX
Industry Medical Equipment & Supplies
Price $ 45.32
Market Cap  $ 1,029
Dividend Yield 1.06
Dividend/CFOp 0.341
Equity/Assets 0.867
Average Equity/Assets 0.875
Financial Strength Average
Growth Prospects Above Average
Beta 0.76
Price Volatility Above Average
Stock Fundamentals C

(Our assessment of this firm’s fundamentals will be in effect for the rest of calendar year 2016.)

If you would like to see research on the other stocks we cover, some of which we do consider the best stocks, click the link below.

Best Stocks to Buy Now

If you would like to learn why we have a preference for the best dividend stocks, click the link below.

Best Dividend Stocks

Disclaimer – Information contained herein has been obtained from sources believed to be reliable. Neither the author nor the publisher guarantees the accuracy or completeness of the information and methods described. This information is offered as general commentary only. It is not intended as investment advice. Investment and trading of securities involves risk, including of loss of capital. Market conditions change over time, and no assurance can be given that a reader may apply the principles described to make a profit. The author and publisher expressly disclaim all and any liability to any person for any investment or trading decisions that the reader may make in reliance on this information.

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In Focus – ABAX

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