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Should You Buy It? Impax Labs

By David Peltier

About this article:
Generic drugmaker Impax Laboratories appears to be flying under the market radar. On Tuesday, the company posted third-quarter earnings of 11 cents a share, handily exceeding the consensus analyst estimate of 5 cents a share. Revenue also grew 77% year over year to $64.9 million. Even so, at Wednesday's closing price of $9.42, the stock is lagging the broader market averages, up just 8% year-to-date. With that in mind, I'm here to answer readers' questions: Should you buy it? Does Impax offer value at current levels, or should investors focus elsewhere? Wednesday was the first anniversary of President Obama's election victory, which is relevant because the generic drug space has steadily been gaining mindshare ever since. While no health care bill has been passed by Congress to date, there's little denying that generic medicines are a quick way to lower expenses for patients. The newest driver for Impax is...

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