Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is a multinational specialty pharmaceutical company that develops and markets prescription and non-prescription products. The company was founded in 1983 and is headquartered in Laval, Quebec, Canada. Valeant employs approximately 17,000 people worldwide.

Over the last few years, post its merger with Biovail in 2013, Valeant has grown through strategic acquisition. In August 2013, it acquired eye-care company Bausch + Lomb, integrating the eye care business and increasing its presence in the space. In February of this year, Valeant completed its acquisition of the assets of now bankrupt Dendreon Corporation, including the rights to its key drug PROVENGE to treat advanced prostate cancer. And in April of this year, it completed its acquisition of Salix Pharmaceuticals, a specialty pharma company specializing in gastrointestinal treatments.

With these acquisitions behind them, Valeant’s focus has begun to shift to organic growth from M&A and its many expected future product launches. The company has a robust late-stage R&D pipeline portfolio. Valeant has the potential to grow its business in the double-digits over the next few years, should it to continue to execute on its plan.

During their latest quarter, the company reported a beat of $0.02 on April 29th. They also beat revenue estimates as well. The big news on the quarter were the synergies generated from the Salix Pharmaceutical and Dendreon acquisitions, with expectations for in excess of $530 million in synergies from Salix and $130 million from Dendreon. The company raised its full year guidance.

This positive earnings news helped heal the wounds left from Valeant’s unsuccessful attempt to buy Botox maker Allergan last year. Valeant had teamed up with activist investor Bill Ackman to make an offer for the company, but they lost out to Actavis PLC who ultimately closed the deal for $66 billion. Perhaps related to that failed acquisition, it was announced when they reported earnings that long-time CFO Howard Schiller would be stepping down. Schiller will remain on the company’s Board however.

On the heels of good news for the company and a still heated environment for health care M&A, Valeant shares are

Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is a multinational specialty pharmaceutical company that develops and markets prescription and non-prescription products. The company was founded in 1983 and is headquartered in Laval, Quebec, Canada. Valeant employs approximately 17,000 people worldwide.

Over the last few years, post its merger with Biovail in 2013, Valeant has grown through strategic acquisition. In August 2013, it acquired eye-care company Bausch + Lomb, integrating the eye care business and increasing its presence in the space. In February of this year, Valeant completed its acquisition of the assets of now bankrupt Dendreon Corporation, including the rights to its key drug PROVENGE to treat advanced prostate cancer. And in April of this year, it completed its acquisition of Salix Pharmaceuticals, a specialty pharma company specializing in gastrointestinal treatments.

With these acquisitions behind them, Valeant’s focus has begun to shift to organic growth from M&A and its many expected future product launches. The company has a robust late-stage R&D pipeline portfolio. Valeant has the potential to grow its business in the double-digits over the next few years, should it to continue to execute on its plan.

During their latest quarter, the company reported a beat of $0.02 on April 29th. They also beat revenue estimates as well. The big news on the quarter were the synergies generated from the Salix Pharmaceutical and Dendreon acquisitions, with expectations for in excess of $530 million in synergies from Salix and $130 million from Dendreon. The company raised its full year guidance.

This positive earnings news helped heal the wounds left from Valeant’s unsuccessful attempt to buy Botox maker Allergan last year. Valeant had teamed up with activist investor Bill Ackman to make an offer for the company, but they lost out to Actavis PLC who ultimately closed the deal for $66 billion. Perhaps related to that failed acquisition, it was announced when they reported earnings that long-time CFO Howard Schiller would be stepping down. Schiller will remain on the company’s Board however.

On the heels of good news for the company and a still heated environment for health care M&A, Valeant shares are trading near record high.

 

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But let’s see how Valeant looks as a Best Stock Now.

Data from Best Stocks Now app

Valeant is a large cap drug stock with a market capitalization of $82.8 billion. Its risk profile is Moderate. I am long in my Moderate Growth accounts.

Let’s next look at the current valuation of the stock.

Data from Best Stocks Now app

The stock currently has a forward PE ratio of 15.3 based on next year’s earnings estimates of $15.53 per share. The company has been growing its earnings at an annual rate of 38% over the last five years. It is expected to continue to grow by 15.2% per year over the next five years. This makes for a very favorable PEG ratio of 1.01.

I currently have a five year target price of $400. This is 68% higher than where the stock is today. Valeant currently gets a Value Grade of B-.

Let’s next look at the performance of the shares.

Data from Best Stocks Now app

Valeant has soared more than 90% over the last year earning it a Momentum Grade of A. YTD the stock is up almost 69%. Its Performance Grade is A+. That’s some pretty good performance for a Large Cap pharma stock!

Data from Best Stocks Now app

Overall, Valeant receives a Stock Grade of A- and its current rank is #66 out of the more than 4100 stocks in the Best Stocks Now Universe. There is a lot to like about Valeant story. It has made some good deals over the last few years. Now it is time to reap the benefits.

Out of the 16 analysts polled by TipRanks.com, 14 rate Valeant stock a Buy, 1 rates the stock a Hold and 1 recommends a Sell. With a return potential of 10.27%, the stock’s consensus target price stands at $256.80.