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The Zacks Analyst Blog Highlights: Becton, Dickinson and Co, Hill-Rom Holdings, Owens & Minor, McKesson Corp and Meridian Bioscience
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For Immediate Release
Chicago, IL – April 5, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Becton, Dickinson and Company (BDX - Free Report) , Hill-Rom Holdings, Inc. , Owens & Minor, Inc. (OMI - Free Report) , McKesson Corporation (MCK - Free Report) and Meridian Bioscience, Inc. .
Here are highlights from Thursday’s Analyst Blog:
4 Lucrative MedTech Stocks to Bet On in 2021
The United States is recording around 66,000 new COVID-19 cases every day (per a seven-day average of Johns Hopkins University data). Although it is much lower than January's peak of about 250,000 daily cases, it is safe to say that the country is not yet out of the doldrums.
Nonetheless, with vaccinations in full swing, the dreadful public health crisis is anticipated to become significantly more manageable this year. Moreover, the historical stimulus package (signed by the President on Mar 12), intending to boost the economy and put an end to the pandemic, has provided a much-needed impetus.
Last year, the MedTech sector showed resilience amid the pandemic-led disruption. This year, this space will make for an alluring investment prospect, backed by sustained strength, favorable trends and the stimulus package.
MedTech: Prospects Shine Bright
The pandemic exhibited the importance of digital health, which contributed significantly to MedTech's performance last year amid the crisis. Riding on this momentum, digital health will grow stronger this year. Companies involved in telemedicine and artificial intelligence (which has been helping immensely since the onset of the coronavirus outbreak) will continue to reap the benefits.
Further, as more people are turning to self-monitoring tools, the wearable devices space continues to show strength. Innovation and the commitment to develop more advanced devices have instilled optimism in investors as the space has the potential to offer bankable returns.
Additionally, with the passing of the stimulus package, the companies involved in the diagnostic testing space, vaccine distribution and manufacturing of personal protective equipment (PPE) will get a significant boost. For instance, Becton, Dickinson and Co., which has been at the forefront of the fight against the pandemic, stands to benefit immensely from the package as it will be able to boost its testing capabilities further.
Also, thanks to the pandemic, a change in business models, with companies leaning toward virtualized, remote-operated business models for medical care, have helped them recover and approach pre-COVID-19 levels.
4 Promising MedTech Stocks to Add to Your Portfolio
As 2021 progresses, investors can safely put their bets on stocks that have shown excellent prowess amid the pandemic-induced volatility and have solid growth potential.
To narrow down the list, we have selected those with a VGM Score of A or B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential. You can see the complete list of today's Zacks #1 Rank stocks here.
Hill-Rom Holdings: The renowned global medical device provider, with a VGM Score of B, witnessed a sharp recovery in emerging market sales, with U.S. revenues exhibiting strength in the first quarter of fiscal 2021. Backed by strong performance, the company raised its fiscal 2021 guidance.
For fiscal 2021, Hill-Rom now expects revenue growth of 0-2% on a reported basis. This compares to the previously mentioned 3-5% decline. Adjusted earnings per share are projected to be $5.70-$5.90 (compared with earlier stated $5.25-$5.45). The company projects 7.3% earnings growth for the next five years. Further, its ROE stands at 23.8% against the industry's negative returns.
Shares of the Zacks Rank #2 company have gained 12.9% on a year-to-date basis compared to the industry's growth of 5%.
Owens & Minor: The global healthcare solutions company delivered record fourth-quarter and 2020 results, with significant earnings growth and margin improvement (driven by favorable product mix). The company, with a VGM Score of A, saw revenue growth on the back of higher demand for PPE — both through its medical-distribution channel and direct to customers along with strength in its home healthcare business.
Notably, for 2021, the company projects adjusted net income per share of $3-$3.50, suggesting growth of 33-55% on a year-over-year basis. The company projects 48.9% earnings growth for the next five years. Further, its ROE stands at 29.1% against the industry's negative returns.
Shares of the Zacks Rank #1 company have gained 38.9% on a year-to-date basis compared with the industry's rise of 4.9%.
McKesson Corp.: The healthcare services and information technology company showed substantial strength in its third-quarter fiscal 2021 results. McKesson's segmental strength in the quarter is a positive.
In January, McKesson managed to distribute more than 25 million doses of the COVID-19 vaccine to sites across the country. From the distribution standpoint, the company remains on track to meet the US government's plan to distribute hundreds of millions of refrigerated and frozen vaccines. Also, a raised fiscal guidance buoys optimism in the stock.
For fiscal 2021, McKesson projects adjusted earnings per share of $16.95-$17.25 (up from the previously mentioned $16-$16.50). The company projects 7.2% earnings growth for the next five years. Further, its ROE stands at 64.93% compared with the industry's 12.53%.
Shares of the Zacks Rank #2 company, with a VGM Score of B, have gained 12.2% on a year-to-date basis compared with the industry's rally of 6.5%.
Meridian Bioscience: The fully-integrated life science company delivered record first-quarter fiscal 2021 operating results, with revenues registering 96% growth on a year-over-year basis. The company's Life Science segment exhibited significant strength, with net revenues of $62.6 million, up 396% from the prior-year quarter.
Based on the robust performance, Meridian Bioscience raised its fiscal 2021 guidance, with total revenues estimated at $320-$350 million and that for the Life Science unit expected at $180-$200 million. Adjusted earnings per share are projected to be between $1.70 and $1.90 for fiscal 2021. The company, with a VGM Score of A, has a historical earnings growth rate of 5.3%. Further, its ROE stands at 29.4% against the industry's negative returns.
Shares of the Zacks Rank #2 company have gained 40.6% on a year-to-date basis compared with the industry's growth of 5%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Becton, Dickinson and Co, Hill-Rom Holdings, Owens & Minor, McKesson Corp and Meridian Bioscience
For Immediate Release
Chicago, IL – April 5, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Becton, Dickinson and Company (BDX - Free Report) , Hill-Rom Holdings, Inc. , Owens & Minor, Inc. (OMI - Free Report) , McKesson Corporation (MCK - Free Report) and Meridian Bioscience, Inc. .
Here are highlights from Thursday’s Analyst Blog:
4 Lucrative MedTech Stocks to Bet On in 2021
The United States is recording around 66,000 new COVID-19 cases every day (per a seven-day average of Johns Hopkins University data). Although it is much lower than January's peak of about 250,000 daily cases, it is safe to say that the country is not yet out of the doldrums.
Nonetheless, with vaccinations in full swing, the dreadful public health crisis is anticipated to become significantly more manageable this year. Moreover, the historical stimulus package (signed by the President on Mar 12), intending to boost the economy and put an end to the pandemic, has provided a much-needed impetus.
Last year, the MedTech sector showed resilience amid the pandemic-led disruption. This year, this space will make for an alluring investment prospect, backed by sustained strength, favorable trends and the stimulus package.
MedTech: Prospects Shine Bright
The pandemic exhibited the importance of digital health, which contributed significantly to MedTech's performance last year amid the crisis. Riding on this momentum, digital health will grow stronger this year. Companies involved in telemedicine and artificial intelligence (which has been helping immensely since the onset of the coronavirus outbreak) will continue to reap the benefits.
Further, as more people are turning to self-monitoring tools, the wearable devices space continues to show strength. Innovation and the commitment to develop more advanced devices have instilled optimism in investors as the space has the potential to offer bankable returns.
Additionally, with the passing of the stimulus package, the companies involved in the diagnostic testing space, vaccine distribution and manufacturing of personal protective equipment (PPE) will get a significant boost. For instance, Becton, Dickinson and Co., which has been at the forefront of the fight against the pandemic, stands to benefit immensely from the package as it will be able to boost its testing capabilities further.
Also, thanks to the pandemic, a change in business models, with companies leaning toward virtualized, remote-operated business models for medical care, have helped them recover and approach pre-COVID-19 levels.
4 Promising MedTech Stocks to Add to Your Portfolio
As 2021 progresses, investors can safely put their bets on stocks that have shown excellent prowess amid the pandemic-induced volatility and have solid growth potential.
To narrow down the list, we have selected those with a VGM Score of A or B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential. You can see the complete list of today's Zacks #1 Rank stocks here.
Hill-Rom Holdings: The renowned global medical device provider, with a VGM Score of B, witnessed a sharp recovery in emerging market sales, with U.S. revenues exhibiting strength in the first quarter of fiscal 2021. Backed by strong performance, the company raised its fiscal 2021 guidance.
For fiscal 2021, Hill-Rom now expects revenue growth of 0-2% on a reported basis. This compares to the previously mentioned 3-5% decline. Adjusted earnings per share are projected to be $5.70-$5.90 (compared with earlier stated $5.25-$5.45). The company projects 7.3% earnings growth for the next five years. Further, its ROE stands at 23.8% against the industry's negative returns.
Shares of the Zacks Rank #2 company have gained 12.9% on a year-to-date basis compared to the industry's growth of 5%.
Owens & Minor: The global healthcare solutions company delivered record fourth-quarter and 2020 results, with significant earnings growth and margin improvement (driven by favorable product mix). The company, with a VGM Score of A, saw revenue growth on the back of higher demand for PPE — both through its medical-distribution channel and direct to customers along with strength in its home healthcare business.
Notably, for 2021, the company projects adjusted net income per share of $3-$3.50, suggesting growth of 33-55% on a year-over-year basis. The company projects 48.9% earnings growth for the next five years. Further, its ROE stands at 29.1% against the industry's negative returns.
Shares of the Zacks Rank #1 company have gained 38.9% on a year-to-date basis compared with the industry's rise of 4.9%.
McKesson Corp.: The healthcare services and information technology company showed substantial strength in its third-quarter fiscal 2021 results. McKesson's segmental strength in the quarter is a positive.
In January, McKesson managed to distribute more than 25 million doses of the COVID-19 vaccine to sites across the country. From the distribution standpoint, the company remains on track to meet the US government's plan to distribute hundreds of millions of refrigerated and frozen vaccines. Also, a raised fiscal guidance buoys optimism in the stock.
For fiscal 2021, McKesson projects adjusted earnings per share of $16.95-$17.25 (up from the previously mentioned $16-$16.50). The company projects 7.2% earnings growth for the next five years. Further, its ROE stands at 64.93% compared with the industry's 12.53%.
Shares of the Zacks Rank #2 company, with a VGM Score of B, have gained 12.2% on a year-to-date basis compared with the industry's rally of 6.5%.
Meridian Bioscience: The fully-integrated life science company delivered record first-quarter fiscal 2021 operating results, with revenues registering 96% growth on a year-over-year basis. The company's Life Science segment exhibited significant strength, with net revenues of $62.6 million, up 396% from the prior-year quarter.
Based on the robust performance, Meridian Bioscience raised its fiscal 2021 guidance, with total revenues estimated at $320-$350 million and that for the Life Science unit expected at $180-$200 million. Adjusted earnings per share are projected to be between $1.70 and $1.90 for fiscal 2021. The company, with a VGM Score of A, has a historical earnings growth rate of 5.3%. Further, its ROE stands at 29.4% against the industry's negative returns.
Shares of the Zacks Rank #2 company have gained 40.6% on a year-to-date basis compared with the industry's growth of 5%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.