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Haemonetics (HAE) Hits a 52-Week High: What's Driving It?
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On Mar 7, shares of Haemonetics Corporation (HAE - Free Report) scaled a new 52-week high of $73.16, closing the session marginally lower at $72.69.
The company has outperformed the industry in the past year. The stock has returned 88.6% compared with the S&P 500 index’s gain of 15.6%. The return is also higher than the industry’s rally of 15.3%.
Further, the company delivered average positive earnings surprise of 17.5% in the trailing four quarters. A positive growth rate of 14.2% for the next year also raises optimism.
The estimate revision trend for the next quarter is quite impressive. In the last 30 days, three estimates moved north, with no movement in the opposite direction. During the same period, the Zacks Consensus Estimate rose 9.8% to earnings per share of 45 cents.
Promising Q3 Results: Last month, Haemonetics reported strong third-quarter results, with earnings and revenues improving on a year-over-year basis. Earnings rose 44% and revenues were up 2.7%. The upside can be attributed to year-over-year revenue growth at the three segments — Plasma, Hemostasis Management and Cell Processing.
Furthermore, gross margin expanded 310 basis points (bps) to 47.6% on a year-over-year basis and operating margin expanded 270 bps to 17.9%.
Solid NexSys PCS: Haemonetics recently-introduced new platform — NexSys Plasma Collection System (PCS). The device is designed to increase overall plasma yield per donor through planned embedded software upgrades. Management is upbeat that NexSys PCS will support an open architecture format to accommodate all Data Management Software programs.
The market is upbeat about the recent FDA clearance of the device. A CE Mark is also expected in spring.
EPS View Upbeat: Haemonetics raised 2018 guidance for earnings, which are estimated in the range of $1.80-$1.90 compared with the previous $1.65-$1.75. The lifted guidance is indicative of the overall bullish.
Bio-Rad has a long-term expected growth rate of 20%. The stock has gained 21.4% in the past six months.
PetMed has a long-term expected growth rate of 10%. The stock has rallied 139.8% in a year’s time.
Centene has a long-term expected growth rate of 14.4%. The stock has returned 46.2% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Haemonetics (HAE) Hits a 52-Week High: What's Driving It?
On Mar 7, shares of Haemonetics Corporation (HAE - Free Report) scaled a new 52-week high of $73.16, closing the session marginally lower at $72.69.
The company has outperformed the industry in the past year. The stock has returned 88.6% compared with the S&P 500 index’s gain of 15.6%. The return is also higher than the industry’s rally of 15.3%.
Further, the company delivered average positive earnings surprise of 17.5% in the trailing four quarters. A positive growth rate of 14.2% for the next year also raises optimism.
The estimate revision trend for the next quarter is quite impressive. In the last 30 days, three estimates moved north, with no movement in the opposite direction. During the same period, the Zacks Consensus Estimate rose 9.8% to earnings per share of 45 cents.
Haemonetics Corporation Price and Consensus
Haemonetics Corporation Price and Consensus | Haemonetics Corporation Quote
Factors Driving Haemonetics
Promising Q3 Results: Last month, Haemonetics reported strong third-quarter results, with earnings and revenues improving on a year-over-year basis. Earnings rose 44% and revenues were up 2.7%. The upside can be attributed to year-over-year revenue growth at the three segments — Plasma, Hemostasis Management and Cell Processing.
Furthermore, gross margin expanded 310 basis points (bps) to 47.6% on a year-over-year basis and operating margin expanded 270 bps to 17.9%.
Solid NexSys PCS: Haemonetics recently-introduced new platform — NexSys Plasma Collection System (PCS). The device is designed to increase overall plasma yield per donor through planned embedded software upgrades. Management is upbeat that NexSys PCS will support an open architecture format to accommodate all Data Management Software programs.
The market is upbeat about the recent FDA clearance of the device. A CE Mark is also expected in spring.
EPS View Upbeat: Haemonetics raised 2018 guidance for earnings, which are estimated in the range of $1.80-$1.90 compared with the previous $1.65-$1.75. The lifted guidance is indicative of the overall bullish.
Zacks Rank & Other Stocks Worth a Look
Haemonetics sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked stocks in the broader medical space are Bio-Rad laboratories, Inc. (BIO - Free Report) , PetMed Express, Inc. (PETS - Free Report) and Centene Corporation (CNC - Free Report) . Each of these stocks carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bio-Rad has a long-term expected growth rate of 20%. The stock has gained 21.4% in the past six months.
PetMed has a long-term expected growth rate of 10%. The stock has rallied 139.8% in a year’s time.
Centene has a long-term expected growth rate of 14.4%. The stock has returned 46.2% in the past year.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>