Top mental health stocks to watch in Q2: LLY, ACHC, ITCI, LSFT & ACAD

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Highlights

  • Eli Lilly and Company (NYSE: LLY) has a P/E ratio of 49.12 and a dividend yield of 1.27%. 
  • Acadia Healthcare Company, Inc. (NASDAQ: ACHC) operated a network of 238 healthcare facilities as of December 31, 2021.
  • LifeStance Health Group, Inc. (NASDAQ: LFST) employs over 4,800 psychiatrists, psychologists, therapists, and advanced practice nurses for patient care. 

The modern, fast-paced life has contributed to many mental health issues, including stress and anxiety. Mental health problems affect both adults and children. Experts recommend that children aged eight and above be screened for anxiety if they show signs of mental issues. 

The US Preventive Services Task Force has warned of mental problems in young people in the aftermath of covid. According to the US Centers for Disease Control and Prevention survey, roughly one-in-three high school students reported mental health issues during the pandemic.



Besides, the Ukraine war has caused immense human suffering and mental health problems for people fleeing the war-torn country. Many of them have taken refuge in neighboring countries. Last month, the World Health Organization (WHO) said that thousands of Ukrainians fleeing to Poland need support for mental health disorders. The UN agency said it would soon start an online training course to address the mental health issue. Here we discuss five stocks focused on mental health stocks that gave positive YTD returns. 

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Eli Lilly and Company (NYSE: LLY) 

Closing price on April 13, 2022: US$302.67
Price range in one year: US$314.00 to US$178.58

Indianapolis, Indiana-based Eli Lilly is focused on neuroscience, oncology, endocrinology, and immunology. Eli Lilly reported total worldwide revenue of US$28.318 billion for the fiscal year ended December 31, 2021, an increase of 15% YoY, compared to US$24.540 billion in the same period in 2020. The company’s net income was US$5.58 billion or US$6.12 per share diluted, compared to US$6.19 billion or US$6.79 per share diluted in FY2020.

Its US revenue increased by 18% YoY, while overseas revenue increased by 12% YoY. The US covid drug revenues were US$1.978 billion in FY2021 compared to US$850.0 million in FY2020.

The company has a market capitalization of US$287.2 billion. Its P/E ratio is 49.12, and its forward P/E for one year is 34.59. The dividend yield is 1.27%, with an annualized dividend of US$3.92.

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Acadia Healthcare Company, Inc. (NASDAQ: ACHC)   

Closing price on April 13, 2022: US$75.03
Price range in one year: US$76.14 to US$50.07

Acadia Healthcare Company provides behavioral healthcare services in the US, the UK, and Puerto Rico. Its in-patient psychiatric and specialty treatment facilities in the US generate significant revenues. The company is based in Franklin, Tennessee. It operated a network of 238 behavioral healthcare facilities as of December 31, 2021.

The company earned a net income of US$195.6 million or US$2.10 per diluted share for the fiscal year ended December 31, 2021, on revenue of US$2.31 billion. For fiscal 2020, its revenue was US$2.09 billion. Its net loss was US$669 million or US$7.65 per diluted share in fiscal 2020.

The company has a market capitalization of US$6.8 billion, a P/E ratio of 35.95 and a forward P/E for one year is 24.93. 

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Intra-Cellular Therapies Inc. (NASDAQ: ITCI) 

Closing price on April 13, 2022: US$64.7
Price range in one year: US$66.00 to US$28.40

Intra-Cellular Therapies is based in New York. It develops novel drugs for diseases related to the central nervous system. It develops small-molecule drugs to treat neuropsychiatric and neurological disorders. 

For fiscal 2021, it posted total revenues of US$83.8 million compared to US$22.8 million in 2020, representing an increase of 267% YoY. Its net loss came in at US$284 million due to higher operating costs compared to a net loss of US$227 million a year ago. The loss per share diluted was US$3.50 in FY2021 versus US$3.23 in FY2020.

The company has a market capitalization of US$6.05 billion.  

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LifeStance Health Group, Inc. (NASDAQ: LFST)     

Closing price on April 13, 2022: US$10.8
Price range in one year: US$29.81 to US$6.42

The Scottsdale, Arizona-based LifeStance Health Group provides virtual and in-person outpatient mental healthcare services for children, adolescents, and adults. 

The company offers data-driven, personalized, and comprehensive care to patients. It employs more than 4,800 psychiatrists, psychologists, therapists, and advanced practice nurses.

For the fiscal year ended December 31, 2021, it posted a revenue of US$667.5 million and a loss from operations of US$286.4 million. Its adjusted EBITDA was 49.15 million. 

The company expects full-year revenue of US$865 million to US$885 million and adjusted EBITDA of US$63 million to US$67 million.

It has a market capitalization of US$4.06 billion. 

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ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD)     

Closing price on April 13, 2022: US$24.43
Price range in one year: US$28.05 to US$15.68

Acadia Pharmaceuticals develops biopharmaceutical products focused on central nervous system disorders. It aims to discover small molecule drugs to address Parkinson's, Alzheimer's, and schizophrenia conditions. ACADIA is headquartered in San Diego, California.

Its revenue for the fiscal year ended December 31, 2021, was US$484 million compared to US$441.8 million in the previous year. The net loss came in at US$167.9 million or US$1.05 per share diluted compared to US$281.6 million or US$1.79 per share diluted in fiscal 2020.

The company has a market capitalization of US$3.86 billion. 

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Bottom line:

The healthcare industry is diverse, comprising companies involved in developing drugs, marketing and distribution, hospital, and clinical services, etc. However, investors should carefully analyze the companies’ fundamentals and the market before investing in stocks.


 


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