Roche Getting A Little More Due, But Could Still Have Some Surprises

It looks as though the market has come around to realizing that it's not all doom and gloom for Roche (OTCQX:RHHBY), as the Swiss drug giant has seen its shares outperform the sector by more than 20% over the past six months, with most of that coming since late October. That outperformance does soak up a lot of the undervaluation I've been seeing in the shares, but I do believe there is a case that expectations for Roche could still be too low, with the company perhaps not as vulnerable to biosimilars as feared and likewise perhaps having a little more long-term growth potential in its pipeline.

I can't call Roche cheap enough to be a table-pounding buy, but I'm happy to own it in the low-to-mid $30s, and I look at it as a solid dividend-paying GARP stock today.

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Roche Getting A Little More Due, But Could Still Have Some Surprises