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Hill-Rom Holdings Hits a 52-Week High on Solid Prospects
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Share price of Batesville, IN-based Hill-Rom Holdings, Inc. scaled a new 52-week high of $67.44 on Mar 1, eventually closing a tad lower at $67.21. The company gained 41.6% over the past one year, much better than the S&P 500’s gain of 20.2% over the same period. The stock has a market cap of $4.39 billion.
Over the last three months, Hill-Rom steadily outshined the Zacks categorized Medical-Products industry. In spite of the top-line underperformance in the first quarter of 2017, the share price trend rallied 25.1% over the past three months, better than the broader industry's gain of 11.3%.
Additionally, Hill-Rom’s long-term growth fundamentals are compelling. The Zacks Rank #3 (Hold) company recorded a five-year CAGR of 12.9% for revenues and 10.8% for earnings per share. Hill-Rom has particularly seen an improvement in earnings over the last three years.
Notably, in the last three months, a comparative study of Hill-Rom’s forward P/E (F12M basis) multiple reflected that the stock has been quite undervalued. The multiple currently stands at 16.8, fairly lower than the broader industry’s average of 20.0 and the S&P 500 average of 18.3.
In aggregate, Hill-Rom currently has a Zacks Value Style Score of ‘B’, placing it in the top 40% of all stocks we cover from this look. This makes Hill-Rom a low-priced stock which makes it an attractive choice for value investors.
Our Value Style Score highlights all the vital metrics to focus on value stocks offering high yields. Our research shows that stocks with a Value Style Score of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 offer the best investment opportunities in the value investing space.
Hill-Rom continues to grow strongly on its strategy of acquisitions to add value. The company aggressively pursues acquisitions to accelerate growth in its key clinical focus areas viz. advancing patient mobility, wound care and prevention, surgical, safety and efficiency, clinical workflow solutions and respiratory help. Recently, the company completed its acquisition of Mortara Instrument, Inc. for $330 million. Management believes that the latest addition would be a boost for its Front Line Care business.
The company is also growing successfully with the acquisition of Welch Allyn last year. The buyout has helped Hill-Rom gain a wider global reach with operations in 30 countries. Additionally, it has helped the company drive innovation in the medical device space and create patient care solutions.
Another factor that works in favor of the company is its product expansion drive. In Jan 2017, Hill-Rom launched two hospital care devices – Allen Advance Table Lateral System and TruSystem 3000 Mobile Operating Table – one after the other. The introduction of these surgical tables reflects the company’s investment in innovation to cash in on the untapped potential of the surgical equipment market.
We are upbeat about Hill-Rom’s prospects based on the above factors.
Glaukos gained over 100% in the last one year in comparison to the S&P 500’s gain of 20.2%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 27.9% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared to the industry average of 15.2%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research.See these stocks free >>
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Hill-Rom Holdings Hits a 52-Week High on Solid Prospects
Share price of Batesville, IN-based Hill-Rom Holdings, Inc. scaled a new 52-week high of $67.44 on Mar 1, eventually closing a tad lower at $67.21. The company gained 41.6% over the past one year, much better than the S&P 500’s gain of 20.2% over the same period. The stock has a market cap of $4.39 billion.
Over the last three months, Hill-Rom steadily outshined the Zacks categorized Medical-Products industry. In spite of the top-line underperformance in the first quarter of 2017, the share price trend rallied 25.1% over the past three months, better than the broader industry's gain of 11.3%.
Additionally, Hill-Rom’s long-term growth fundamentals are compelling. The Zacks Rank #3 (Hold) company recorded a five-year CAGR of 12.9% for revenues and 10.8% for earnings per share. Hill-Rom has particularly seen an improvement in earnings over the last three years.
Notably, in the last three months, a comparative study of Hill-Rom’s forward P/E (F12M basis) multiple reflected that the stock has been quite undervalued. The multiple currently stands at 16.8, fairly lower than the broader industry’s average of 20.0 and the S&P 500 average of 18.3.
In aggregate, Hill-Rom currently has a Zacks Value Style Score of ‘B’, placing it in the top 40% of all stocks we cover from this look. This makes Hill-Rom a low-priced stock which makes it an attractive choice for value investors.
Our Value Style Score highlights all the vital metrics to focus on value stocks offering high yields. Our research shows that stocks with a Value Style Score of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 offer the best investment opportunities in the value investing space.
Hill-Rom Holdings Inc Price and Consensus
Hill-Rom Holdings Inc Price and Consensus | Hill-Rom Holdings Inc Quote
Growth Catalysts
Hill-Rom continues to grow strongly on its strategy of acquisitions to add value. The company aggressively pursues acquisitions to accelerate growth in its key clinical focus areas viz. advancing patient mobility, wound care and prevention, surgical, safety and efficiency, clinical workflow solutions and respiratory help. Recently, the company completed its acquisition of Mortara Instrument, Inc. for $330 million. Management believes that the latest addition would be a boost for its Front Line Care business.
The company is also growing successfully with the acquisition of Welch Allyn last year. The buyout has helped Hill-Rom gain a wider global reach with operations in 30 countries. Additionally, it has helped the company drive innovation in the medical device space and create patient care solutions.
Another factor that works in favor of the company is its product expansion drive. In Jan 2017, Hill-Rom launched two hospital care devices – Allen Advance Table Lateral System and TruSystem 3000 Mobile Operating Table – one after the other. The introduction of these surgical tables reflects the company’s investment in innovation to cash in on the untapped potential of the surgical equipment market.
We are upbeat about Hill-Rom’s prospects based on the above factors.
Key Picks
Better-ranked stocks in the medical product sector are Glaukos Corporation (GKOS - Free Report) , Cardiovascular Systems and Neogen Corp. (NEOG - Free Report) . All these stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos gained over 100% in the last one year in comparison to the S&P 500’s gain of 20.2%. The company has a stellar four-quarter average earnings surprise of over 100%.
Cardiovascular Systems surged over 100% in the last one year in comparison to the S&P 500. It has a four-quarter average earnings surprise of 67.8%.
Neogen gained 27.9% in the past one year, better than the S&P 500 mark. The stock has an impressive long-term earnings growth rate of 16.7% for the next five years compared to the industry average of 15.2%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>