With earnings due July 27, artificial intelligence-driven medical imaging and diagnostics leader Lantheus is near an all-time high while generating explosive growth. LNTH stock now has a fresh breakout in its sites.
With the highest-possible 99 Composite Rating, Lantheus ranks No. 1 in the medical products group. Hailing from the same industry group, Meridian Bioscience also rates highly in IBD Stock Checkup and earned a spot on the latest list of new buys by the best mutual funds, which was dominated by medical stocks.
Also showing solid institutional demand, Lantheus sports a B+ Accumulation/Distribution Rating and a 1.9 up/down volume ratio. Plus, 24 funds with an A+ rating from IBD have reported a position in LNTH stock.
Lantheus Delivers 1,840% Earnings Growth With More Expected
The history of Lantheus goes back over 60 years. In 1981, the company was purchased by DuPont de Nemours. Then in 2001, Bristol Myers Squibb acquired the diagnostic medical imaging business as part of its acquisition of DuPont Pharmaceuticals. In 2008, the business, then called BMS Medical Imaging, was acquired by private equity firm Avista Capital Partners, a private equity firm. Lantheus then went on to launch an IPO in 2015.
Today, headquartered in the tech hub within Massachusetts, Lantheus provides innovative imaging diagnostics, targeted therapeutics and artificial intelligence solutions. Its broad portfolio of imaging agents and products illuminate the heart, brain, lungs and other organs.
Last year, the company received FDA approval for its Pylarify injection, an imaging agent for prostate cancer. In June, Lantheus announced that it has demonstrated the higher efficiency and consistency of the Pylarify AI platform while maintaining the diagnostic accuracy of Prostate-Specific Membrane Antigen (PSMA) imaging in prostate cancer.
These and other innovations have driven impressive earnings anld sales growth in recent quarters. Over the last three quarters EPS growth has averaged 732%, including an 1,840% spike in its latest report. Analysts expect Lantheus to post another 534% increase when it reports on July 27.
Over three quarters, revenue growth has jumped from 15% a quarter to 126%.
AI Innovations Guide LNTH Stock Toward Breakout
With its relative strength line already hitting a new high, Lantheus is targeting a 73.88 buy point. Note that it's a later-stage chart pattern, which entails more risk.
The current cup base is forming as LNTH stock consolidates a big move that started with a nearly 62% weekly gain for the week of Feb. 25 on earnings. Lantheus continued to build on that spike and is now showing signs of support as it looks to break out from the current cup pattern.
Attention now turns to the next earnings report. See if Lantheus can deliver on its lofty Wall Street estimates and punch through to a new all-time high.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
