Pile Into Perrigo: David Peltier, portfolio manager for TheStreet.com's Dividend Stock Advisor newsletter, says generic drugmaker and consumer staples manufacturer Perrigo is ready for a rebound. Here's why.

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From a recent Mad Money show:"I was surprised by the pullback, but they had a bad quarter. They should be doing well, but they aren't, so I'm a seller."

10%

seems to be steady

PE of 23, a PEG of 0.87, and it pays a yield of 0.6%.

Just an awesome display. In fact, the only real stinker today -- besides Fannie Mae (FNM), which no one seems to care about -- was Perrigo (PRGO), and that's just because people had bid it up as a substitution play, a trade-down play, because it makes generic products.

Good long term investment

Generic drug and health care products maker Perrigo Co. said ts board authorized the repurchase of $150 million in common stock and declared a regular quarterly dividend of 5 cents per share.

The company also announced that second-quarter earnings surged 63 percent on double-digit revenue growth, beating Wall Street estimates.

The stock has a forward PE of 19.

Or there's Perrigo [PRGO], which takes drugs that go off patent and then makes a private-label product for drugstores to sell. It is getting terrific reception from drugstores. This company is just starting to accelerate with a number of new drugs like analgesics and vitamins and nutrition and gastrointestinal treatments. Its earnings in the last quarter were up 89%, largely because of good profit-margin improvements. The quarter before that earnings were up 26%, and that's coming off of a long, flat period. It should earn about $1.45 this year and probably $1.80 next year. The stock is around 31.

Outperform/Aggressive Risk -- Price 32.66 on Dec. 19
by Barrington Research

Perrigo expects to begin shipping 20-milligram Omeprazole delayed-release tablets (store-brand equivalent to Prilosec OTC) during the calendar 1Q08 or during its fiscal 3Q. Initial annualized sales of the product are expected to be $150 million to $200 million ... We believe PRGO shares can trade at a price/earnings multiple of 25 times, due to PRGO's accelerating growth rate and robust pipeline. New target 42, from 35. Market-cap: $3.09 billion.