Lantheus has gotten torched over the last six months - since March 2025, its stock price has dropped 51.2% to $53.64 per share. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation.

Following the drawdown, is now a good time to buy LNTH? Find out in our full research report, it’s free.

Why Does LNTH Stock Spark Debate?

Pioneering the "Find, Fight and Follow" approach to disease management, Lantheus Holdings (NASDAQGM:LNTH) develops and commercializes radiopharmaceuticals and other imaging agents that help healthcare professionals detect, diagnose, and treat diseases.

Two Things to Like:

1. Skyrocketing Revenue Shows Strong Momentum

A company’s long-term sales performance is one signal of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Lantheus grew its sales at an incredible 35.6% compounded annual growth rate. Its growth surpassed the average healthcare company and shows its offerings resonate with customers.

2. New Investments Bear Fruit as ROIC Jumps

ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, Lantheus’s ROIC has increased. This is a great sign when paired with its already strong returns, but we also recognize its lack of profitable growth during the COVID era was the primary reason for the change.

One Reason to be Careful:

Revenue Projections Show Stormy Skies Ahead

Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Lantheus’s revenue to drop by 3.3%, a decrease from its 35.6% annualized growth for the past five years. This projection is underwhelming and implies its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.

Final Judgment

Lantheus’s merits more than compensate for its flaws. After the recent drawdown, the stock trades at 8× forward P/E (or $53.64 per share). Is now a good time to initiate a position? See for yourself in our full research report, it’s free.

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