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Is Immune Pharmaceuticals Inc (NASDAQ:IMNP) An Industry Laggard Or Leader?

Immune Pharmaceuticals Inc (NASDAQ:IMNP), a US$8.02M small-cap, operates in the healthcare industry, which continues to be affected by the sustained economic uncertainty and structural trends, such as an aging population, impacting the sector globally. Healthcare analysts are forecasting for the entire industry, a somewhat weaker growth of 9.82% in the upcoming year , and a massive growth of 38.86% over the next couple of years. This rate is larger than the growth rate of the US stock market as a whole. Below, I will examine the sector growth prospects, and also determine whether Immune Pharmaceuticals is a laggard or leader relative to its healthcare sector peers. Check out our latest analysis for Immune Pharmaceuticals

What’s the catalyst for Immune Pharmaceuticals’s sector growth?

NasdaqCM:IMNP Past Future Earnings May 24th 18
NasdaqCM:IMNP Past Future Earnings May 24th 18

Data analytics and other technology-enabled approaches are creating opportunities for innovations, however, stakeholders have been challenged to keep abreast of this structural shift while under pressure to cut costs. In the previous year, the industry saw growth in the twenties, beating the US market growth of 13.66%. Immune Pharmaceuticals leads the pack with its impressive earnings growth of 76.69% over the past year. Furthermore, analysts are expecting this trend of above-industry growth to continue, with Immune Pharmaceuticals poised to deliver a 67.06% growth over the next couple of years compared to the industry’s 9.82%.

Is Immune Pharmaceuticals and the sector relatively cheap?

NasdaqCM:IMNP PE PEG Gauge May 24th 18
NasdaqCM:IMNP PE PEG Gauge May 24th 18

The biotech sector’s PE is currently hovering around 26.03x, higher than the rest of the US stock market PE of 18.33x. This illustrates a somewhat overpriced sector compared to the rest of the market. However, the industry did return a higher 18.07% compared to the market’s 11.18%, which may be indicative of past tailwinds. Since Immune Pharmaceuticals’s earnings doesn’t seem to reflect its true value, its PE ratio isn’t very useful. A loose alternative to gauge Immune Pharmaceuticals’s value is to assume the stock should be relatively in-line with its industry.

Next Steps:

Immune Pharmaceuticals’s industry-beating future is a positive for investors. If Immune Pharmaceuticals has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the biotech industry. However, before you make a decision on the stock, I suggest you look at Immune Pharmaceuticals’s fundamentals in order to build a holistic investment thesis.

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  1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.

  2. Historical Track Record: What has IMNP’s performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Immune Pharmaceuticals? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.