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Varian Medical Excels on Growing International Footprint
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Varian Medical Systems Inc. stock has been a consistent performer over the last 12 months. Shares of this oncology treatment therapy provider have surged 22.4% as compared with S&P 500’s return of 13.7%, primarily driven by its growing oncology market share and continuing international expansion.
Of late, Varian has expanded its footprint in countries like Australia, Turkey and China along with others. The company is opening up new offices in Africa and the Middle East, which shows that it is aware of the growth opportunities in the region. Moreover, the company is now focusing on improving its penetration in Latin America.
Varian recently announced the installation of a Clinac iX medical linear accelerator at Instituto Oncologico del Oriente Boliviano in Santa Cruz, Bolivia. The oncology center will also use Varian’s Eclipse treatment planning software and ARIA information management system.
We believe the installation will boost Varian’s order growth in the region. In the recently concluded third quarter of fiscal 2016, order activity in Latin America continued to remain weak (down 40%) due to macroeconomic factors.
Meanwhile, international markets are too under-equipped to address the growing incidence of cancer. The International Agency for Research on Cancer of the World Health Organization estimates that annual cancer rates around the world will increase from 14.1 million in 2012 to 20 million new cases by 2025.
Varian’s strong overseas presence is expected to enable it to leverage this opportunity in emerging markets. Notably, in the recently concluded third quarter of fiscal 2016, healthy gross order growth in emerging markets including Iran, Russia, Ethiopia, Burkina Faso and Libya was observed. In Africa, Varian won gross order worth $25 million.
We believe that Varian’s oncology business growth prospects remain impressive in these countries due to the strong demand for its products. The company is addressing both the tier 1 and mid-tier markets through its Edge, Truebeam and VitalBeam products. Moreover, the company believes that the Proton system has massive growth potential.
Zacks Rank & Key Picks
Currently, Varian carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the medical sector are Quidel Corp (QDEL - Free Report) , Masimo Corp (MASI - Free Report) and IDEXX Laboratories (IDXX - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy).
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Varian Medical Excels on Growing International Footprint
Varian Medical Systems Inc. stock has been a consistent performer over the last 12 months. Shares of this oncology treatment therapy provider have surged 22.4% as compared with S&P 500’s return of 13.7%, primarily driven by its growing oncology market share and continuing international expansion.
Of late, Varian has expanded its footprint in countries like Australia, Turkey and China along with others. The company is opening up new offices in Africa and the Middle East, which shows that it is aware of the growth opportunities in the region. Moreover, the company is now focusing on improving its penetration in Latin America.
Varian recently announced the installation of a Clinac iX medical linear accelerator at Instituto Oncologico del Oriente Boliviano in Santa Cruz, Bolivia. The oncology center will also use Varian’s Eclipse treatment planning software and ARIA information management system.
We believe the installation will boost Varian’s order growth in the region. In the recently concluded third quarter of fiscal 2016, order activity in Latin America continued to remain weak (down 40%) due to macroeconomic factors.
Meanwhile, international markets are too under-equipped to address the growing incidence of cancer. The International Agency for Research on Cancer of the World Health Organization estimates that annual cancer rates around the world will increase from 14.1 million in 2012 to 20 million new cases by 2025.
VARIAN MEDICAL Price
VARIAN MEDICAL Price | VARIAN MEDICAL Quote
Varian’s strong overseas presence is expected to enable it to leverage this opportunity in emerging markets. Notably, in the recently concluded third quarter of fiscal 2016, healthy gross order growth in emerging markets including Iran, Russia, Ethiopia, Burkina Faso and Libya was observed. In Africa, Varian won gross order worth $25 million.
We believe that Varian’s oncology business growth prospects remain impressive in these countries due to the strong demand for its products. The company is addressing both the tier 1 and mid-tier markets through its Edge, Truebeam and VitalBeam products. Moreover, the company believes that the Proton system has massive growth potential.
Zacks Rank & Key Picks
Currently, Varian carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the medical sector are Quidel Corp (QDEL - Free Report) , Masimo Corp (MASI - Free Report) and IDEXX Laboratories (IDXX - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>