A mid-cap med-tech company with 20%-plus revenue growth,
profitable operations, positive free cash flow, and a large addressable
market is going to get noticed, and so it has been for Inogen (INGN) - the shares have risen more than 70% in the past year and trounced the likes of ResMed (RMD) and Invacare (NYSE:IVC),
not to mention the S&P 500, over the last three years as this
company has grabbed more and more share of the growing portable oxygen
market.
Although the fundamental growth story is
strong, it's hard to see the appeal outside of growth and momentum as
the company trades well above what I consider a reasonable cash
flow-based valuation and at over 9x forward revenue. That said, if you
are a valuation-insensitive growth investor looking for a momentum
story, maybe this is a name to check out.
Read more here:
Inogen May Only Be Getting Started
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