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Here's Why You Should Invest in Hill-Rom (HRC) Stock Now
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Hill-Rom Holdings, Inc. has been gaining investor confidence on continued positive results. Over the past year, the company’s share price has outperformed its industry. The stock has gained 11.3% against the industry’s 2.5% fall. Also, the company has outperformed the S&P 500’s 1% gain.
This renowned global medical device company has a market cap of $6.29 billion. The company has an earnings growth rate of 14% for the next three to five years.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
What Makes the Stock an Attractive Pick?
Solid Quarterly Performance
Hill-Rom exited fiscal 2018 on a strong note, with fourth-quarter earnings and revenues beating the respective Zacks Consensus Estimate. Adjusted earnings jumped 23% in the reported quarter, marking the 13th consecutive period of double-digit growth.
The company witnessed a solid increase in revenues on stellar domestic growth, driven by an impressive performance in Patient Support Systems and Front Line Care.
Growing New Product Revenues
Through fiscal 2018, new products generated more than $300 million in revenues. Within the Surgical Solutions business, Integrated Table Motion has been gaining strong momentum, of late. This apart, the Da Vinci XI Robot is registering a robust performance. In fiscal 2019, the company expects to generate more than $400 million in new product revenues, exceeding its fiscal 2020 objective a year in advance.
Hill-Rom plans to expand its global reach with the launch of Centrella in the Middle East and Australia during fiscal 2019.
Gains From Entry Into Digital Health Space
Hill-Rom recently launched its smartphone application — Linq mobile. Per the company, the Linq mobile platform has integrated Clinical Workflows with Nurse Call, clinical surveillance in monitoring systems, in order to enhance the care team’s communication and efficiency. Per management, this move will pave the way for an additional market opportunity of around $200 million.
Which Way Are Estimates Treading?
For the current quarter, the Zacks Consensus Estimate for earnings is pegged at 98 cents, reflecting year-over-year growth of 6.5%. The same for revenues stands at $675.1 million, mirroring 0.8% improvement year over year.
For fiscal 2019, the Zacks Consensus Estimate for earnings is pinned at $5.13, reflecting 8% year-over-year growth. The same for revenues is pegged at $2.9 billion, indicating a rise of 1.4%.
Other Key Picks
Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2, currently.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2, at present.
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Here's Why You Should Invest in Hill-Rom (HRC) Stock Now
Hill-Rom Holdings, Inc. has been gaining investor confidence on continued positive results. Over the past year, the company’s share price has outperformed its industry. The stock has gained 11.3% against the industry’s 2.5% fall. Also, the company has outperformed the S&P 500’s 1% gain.
This renowned global medical device company has a market cap of $6.29 billion. The company has an earnings growth rate of 14% for the next three to five years.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
What Makes the Stock an Attractive Pick?
Solid Quarterly Performance
Hill-Rom exited fiscal 2018 on a strong note, with fourth-quarter earnings and revenues beating the respective Zacks Consensus Estimate. Adjusted earnings jumped 23% in the reported quarter, marking the 13th consecutive period of double-digit growth.
The company witnessed a solid increase in revenues on stellar domestic growth, driven by an impressive performance in Patient Support Systems and Front Line Care.
Growing New Product Revenues
Through fiscal 2018, new products generated more than $300 million in revenues. Within the Surgical Solutions business, Integrated Table Motion has been gaining strong momentum, of late. This apart, the Da Vinci XI Robot is registering a robust performance. In fiscal 2019, the company expects to generate more than $400 million in new product revenues, exceeding its fiscal 2020 objective a year in advance.
Hill-Rom plans to expand its global reach with the launch of Centrella in the Middle East and Australia during fiscal 2019.
Gains From Entry Into Digital Health Space
Hill-Rom recently launched its smartphone application — Linq mobile. Per the company, the Linq mobile platform has integrated Clinical Workflows with Nurse Call, clinical surveillance in monitoring systems, in order to enhance the care team’s communication and efficiency. Per management, this move will pave the way for an additional market opportunity of around $200 million.
Which Way Are Estimates Treading?
For the current quarter, the Zacks Consensus Estimate for earnings is pegged at 98 cents, reflecting year-over-year growth of 6.5%. The same for revenues stands at $675.1 million, mirroring 0.8% improvement year over year.
For fiscal 2019, the Zacks Consensus Estimate for earnings is pinned at $5.13, reflecting 8% year-over-year growth. The same for revenues is pegged at $2.9 billion, indicating a rise of 1.4%.
Other Key Picks
Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .
Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2, currently.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2, at present.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>