Simulations Plus, Inc. (SLP)

(A Top Pick Apr 13/21, Down 32%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with SLP has triggered its stop at $40. We recommend covering the remaining position at this time. We will look for better opportunities.

Stockchase Research Editor: Michael O'Reilly SLP is a $1.2 billion healthcare software company that provides modeling and simulation products to drug companies and biotechs and other sectors. Recently reported revenues were up 27% on the year and net income rose 49%. Their recurring revenue model helps produce 78% gross margins and it carries minimal long term debt. It pays a small dividend, backed by a 45% payout ratio. We would buy this with a stop loss at $40, looking to achieve $83 -- upside potential over 40%. Yield 0.38% (Analysts’ price target is $82.50)