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CR Bard (BCR) at 52-Week High on Strong Product Pipeline
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Shares of CR Bard rallied to a new 52-week high of $232.77 on Jun 29, eventually closing a tad bit lower at $232.35. This represents a strong one-year return of about 34.5%, much better than the S&P 500’s return of -0.3% over the same time frame.
Currently, CR Bard carries a Zacks Rank #2 (Buy). The stock has a market cap of 16.69 billion and a long-term expected earnings growth rate of 10.46%.
Key Catalysts
Bard reported an impressive first quarter of 2016 with extraordinary performance in international markets, extensive investment in product development and a diversified product portfolio. Notably, the company reported adjusted earnings of $2.34 per share, which beat the Zacks Consensus Estimate by 17 cents.
Bard has a significant recurring revenue stream, as its products are primarily ‘single-use’. Notably, about 76% of its products are either first or second in terms of market share, which is a significant positive in our view.
The company’s expanding product line is also a key catalyst. The Biopsy unit of the company launched 8 new products including EnCor Enspire, EnCor Ultra and the mission semi-automatic biopsy line of devices in Asia. It also introduced 18 new products in Latin America and the Middle East.
Meanwhile, Bard gained a competitive edge in the market with the introduction of 5 French Compatible drug-coated balloons (DCB) and 7mm diameter products. Moreover, FDA clearance for the Below-the-Knee IDE in the middle of the first quarter served as a major growth driving factor.
Notably, the agreement between Bard and Boston Scientific (BSX - Free Report) over the limited distribution of Lutonix DCB is likely to drive sales across the globe.
Moreover, a number of company products are awaiting FDA approval. These include the COVERA next generation Stent graft IDE, Chemical resistant catheters and the PowerGlide Pro. The innovative product pipeline is a major key catalyst in our view.
Additionally, the recent share buyback program worth $500 million will boost earnings in full-year 2016 and beyond.
Estimate Revisions
The Zacks Consensus Estimate for fiscal 2016 is constant at $10.14 over the last 60 days. However, for fiscal 2017, estimates increased by 4 cents to $11.26 over the same time frame.
Key Picks
Better-ranked stocks in the sector include Halyard Health Inc , CONMED Corporation (CNMD - Free Report) and Boston Scientific Corporation (BSX - Free Report) . Notably, Halyard Health sports a Zacks Rank #1 (Strong Buy) while both CONMED Corporation and Cooper Companies carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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CR Bard (BCR) at 52-Week High on Strong Product Pipeline
Shares of CR Bard rallied to a new 52-week high of $232.77 on Jun 29, eventually closing a tad bit lower at $232.35. This represents a strong one-year return of about 34.5%, much better than the S&P 500’s return of -0.3% over the same time frame.
Currently, CR Bard carries a Zacks Rank #2 (Buy). The stock has a market cap of 16.69 billion and a long-term expected earnings growth rate of 10.46%.
Key Catalysts
Bard reported an impressive first quarter of 2016 with extraordinary performance in international markets, extensive investment in product development and a diversified product portfolio. Notably, the company reported adjusted earnings of $2.34 per share, which beat the Zacks Consensus Estimate by 17 cents.
BARD C R INC Price and Consensus
BARD C R INC Price and Consensus | BARD C R INC Quote
Bard has a significant recurring revenue stream, as its products are primarily ‘single-use’. Notably, about 76% of its products are either first or second in terms of market share, which is a significant positive in our view.
The company’s expanding product line is also a key catalyst. The Biopsy unit of the company launched 8 new products including EnCor Enspire, EnCor Ultra and the mission semi-automatic biopsy line of devices in Asia. It also introduced 18 new products in Latin America and the Middle East.
Meanwhile, Bard gained a competitive edge in the market with the introduction of 5 French Compatible drug-coated balloons (DCB) and 7mm diameter products. Moreover, FDA clearance for the Below-the-Knee IDE in the middle of the first quarter served as a major growth driving factor.
Notably, the agreement between Bard and Boston Scientific (BSX - Free Report) over the limited distribution of Lutonix DCB is likely to drive sales across the globe.
Moreover, a number of company products are awaiting FDA approval. These include the COVERA next generation Stent graft IDE, Chemical resistant catheters and the PowerGlide Pro. The innovative product pipeline is a major key catalyst in our view.
Additionally, the recent share buyback program worth $500 million will boost earnings in full-year 2016 and beyond.
Estimate Revisions
The Zacks Consensus Estimate for fiscal 2016 is constant at $10.14 over the last 60 days. However, for fiscal 2017, estimates increased by 4 cents to $11.26 over the same time frame.
Key Picks
Better-ranked stocks in the sector include Halyard Health Inc , CONMED Corporation (CNMD - Free Report) and Boston Scientific Corporation (BSX - Free Report) . Notably, Halyard Health sports a Zacks Rank #1 (Strong Buy) while both CONMED Corporation and Cooper Companies carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>