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The Zacks Analyst Blog Highlights: Thermo Fisher Scientific, SeaSpine Holdings and EnteroMedics

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For Immediate Release

Chicago, IL – October 09, 2017 – 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 Thermo Fisher Scientific Inc. (NYSE:(TMO - Free Report)  Free Report), SeaSpine Holdings Corp. (Nasdaq: Free Report) and EnteroMedics Inc. (Nasdaq: Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Friday’s Analyst Blog:

3 Momentum Stocks That May Survive the Health Policy Mess

The future of the U.S. healthcare space is mired in uncertainty with President Trump’s efforts to revoke the Affordable Care Act (ACA) or Obamacare falling flat. This is despite the fact that the Republicans are going all out to end the policy fiasco. The investment world is equally baffled.

Chances of Stability Anytime Soon?

The majority of the healthcare space has heaved a sigh of relief with the recent failure of the Graham-Cassidy bill, thanks to the Congressional Budget Office’s (CBO) latest ‘warning report’ that anticipated health coverage loss for millions of Americans due to $1 trillion in reduction in federal spending on Medicaid through 2026.

Per the report, there will be considerable decrease in the number of people enrolling in Medicaid in this period for three primary reasons — “the expansion of the program established by the ACA would be repealed starting in 2020, federal reimbursement to states for Medicaid would be capped on a per-en-rollee basis beginning in 2020, and the individual mandate penalty (which induces some people to enroll in Medicaid) would be repealed upon the legislation’s enactment.”

Although the President’s latest action plan indicates that the respite from Graham-Cassidy failure is short-lived, one thing is pretty clear from the entire pandemonium. Any effort to bring about a major change in the existing health insurance policy may again turn out to be futile for the Republicans.

This is because, in their undying effort to fully repeal and replace Obamacare, the Republicans have never achieved a 60-40 majority. Among the related articles doing the rounds, a report by Kimberly Amadeo published in The Balance states that “Trump wanted Congress to replace the Affordable Care Act of 2010 before September 30, 2017. That's the last day Senate Republicans could pass the bill with just a 51-vote majority. That includes Vice President Mike Pence casting the final vote. But they never got the votes.”

While economists are once again dissecting all the facts trying to come out with probable ways in which the ruling party can turn around, it is hard for investors keen on the medical space to settle for an investment strategy that can earn them a concrete pay.

Investing Strategy to Bet On

Amid such political conundrum, while pondering on several investment mantras, the majority of investors prefer to bet on stocks, which have ability to brave the situation with their rock-solid fundamentals. However, sometimes thinking out of the box can create wonders. And we find it more logical to ask investors to consider investment options that are not dependent on the political twists and turns.

We are talking about momentum investing. We believe that investors can earn handsome profits by extrapolating the current bullish trends of the market into the future. Banking on momentum investment strategy can be worthwhile at this moment.

However, picking the right momentum stocks may be a challenging task for even seasoned investors, who are planning to enter the uncharted world of jam-packed trades.

Zacks Screening Guide

We are using the Zacks Style Score system to single out stocks that can yield favorable returns and are not affected by market conditions. 

The Momentum Style Score indicates the best time to buy a stock and take advantage of its momentum with the highest probability of success.

Our research shows that stocks with a Momentum Score of A, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential for the short term. You can see the complete list of today’s Zacks #1 Rank stocks here.

Our Picks

Thermo Fisher Scientific Inc. (NYSE:(TMO - Free Report) Free Report)

Thermo Fisher posted earnings of $2.30 per share in the most recent quarter, surpassing the Zacks Consensus Estimate by 1.3%. Since then, the company has seen positive estimate revisions. The company’s current-year Zacks Consensus Estimate has increased 4 cents over the past month.

This revision activity has propelled the stock to a Zacks Rank #2, and its recent gains have helped it earn a Momentum Score of B. Thermo Fisher shares have increased more than 26% over the last six months, way ahead of the S&P 500 market’s 8.4% gain.

The company’s impressive growth prospects will continue to push the stock higher. Looking ahead, Thermo Fisher is poised to benefit from its leading position in the market of life sciences solutions, analytical instruments and laboratory products and services.

SeaSpine Holdings Corp. (Nasdaq: Free Report)

This leading name in the field of surgical solutions related to spinal disorder reported loss of 68 cents per share in the last quarter, narrower than the Zacks Consensus Estimate of a loss of 79 cents. Since then, the company has seen positive estimate revisions. Its Zacks Consensus Estimate for the current year improved by 17 cents over the past couple of months.

This has propelled the stock to a Zacks Rank #2. It has a Momentum Score of B. Last month, the company made full commercial launch of the Shoreline Anterior Cervical Standalone system, featuring TruProfile technology. We believe that several new developments will further drive the stock. SeaSpine shares have increased nearly 43% over the last six months, way ahead of the S&P 500 market’s gain in this period.

Veru Inc.

This biopharmaceutical company, focused on urology and oncology, has benefited from the steady growth in this space. The company reported loss of 3 cents per share, narrower than the Zacks Consensus Estimate of a loss of 8 cents.

Within the last two months, Veru’s stock has improved by 5 cents for the current fiscal. The company’s stock price has increased more than 107% over the last six months. Veru is now a Zacks Rank #1 (Strong Buy) stock and has a Momentum and Growth Score of A.

EnteroMedics Inc. (Nasdaq: Free Report)

EnteroMedics is also proving to be investor favorite in recent times. The company delivered loss of 91 cents per share in the most recent quarter, narrower than the Zacks Consensus Estimate of loss by 9%. Since then, it has seen positive estimate revisions and within the last two months, EnteroMedics’ estimate has improved by $1.7 per share for the current fiscal.

This revision activity has propelled the stock to a Zacks Rank #1, and its recent gains have helped it earn a Momentum Score of B. The company’s impressive growth prospects will continue to push the stock higher.

Looking ahead, EnteroMedics is poised to benefit from the latest acquisition of ReShape Medical, a privately-held medical technology company and provider of the ReShape Dual Weight Loss Balloon, an FDA-approved, minimally invasive intragastric balloon. EnteroMedics’ shares have gained 18% over the last month, ahead of the S&P 500’s gain of 2.6%.

5 Trades Could Profit "Big-League" from Trump Policies

If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.

Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure.

See these buy recommendations now >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.

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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.


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