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As we progress through 2023 investors should still consider diversifying their investment portfolios with equities in the Zacks Medical sector.
There is always an essential need for healthcare and here are two Zacks Rank #1 (Strong Buy) medical stocks that investors should consider buying right now.
The Medical – Dental Supplies Industry is currently in the top 15% of over 250 Zacks Industries and Henry Schein stock is starting to stand out.
In addition to its Zacks Rank #1 (Strong Buy) Schein stock also sports an overall “A” VGM Style Scores grade as the company is poised to be a beneficiary of a strong business industry at the moment.
Earnings estimates are starting to trend higher for the global distributor of healthcare products and services. Schein is a leader among product offerings for dental offices and laboratories, medical and animal health practitioners, along with government and institutional healthcare clinics.
Image Source: Zacks Investment Research
Fiscal 2023 and FY24 earnings estimate revisions have gone up 4% throughout the quarter. Schein’s earnings are now expected to jump 9% in fiscal year 2023 and rise another 8% in FY24 at $5.70 per share. Sales are forecasted to be up 1% this year and rise another 4% in FY24 to $13.34 billion.
Down -15% in February, the recent dip in Schein stock is starting to look like a buying opportunity when considering higher earnings estimates and the company’s valuation. Plus, Schein stock is still up +23% over the last two years to easily top the S&P 500’s +1% and the Medical/Dental Supplies Markets +2%.
Image Source: Zacks Investment Research
Furthermore, Schein stock trades at $77 a share and 14.6X forward earnings which is nicely below the industry average of 19.8X and the company is a leader. Plus, Schein stock trades 54% below its decade-long high of 32X and at a 30% discount to the median of 20.9X.
Image Source: Zacks Investment Research
Also, last month’s decline in Schein stock following its Q4 earnings report on February 16 appears to be overdone and centered around the company’s track record of excellence on its bottom line more so than its stable but not stellar guidance.
Schein was still able to reach its Q4 EPS expectations but not posting an earnings beat came as a surprise to many with the company previously topping estimates for an astonishing 19 consecutive quarters.
Another medical stock that is standing out right now is Lantheus Holdings with its Medical Products Industry currently in the top 43% of all Zacks Industries.
Lantheus develops, manufactures, and distributes diagnostic medical imaging agents and products for the diagnosis of cardiovascular and other diseases. Lantheus’ Growth and Momentum stand out at the moment carrying an “A” Style Scores grade for both categories.
The earnings estimate revisions are the main catalyst here as they have soared over the last 90 days. Fiscal 2023 and FY24 EPS estimates have gone up 37% and 17% respectively.
Image Source: Zacks Investment Research
Lantheus’ annual earnings are now projected to climb 13% this year and jump another 11% in FY24 at $5.32 per share. On the top line, sales are forecasted to leap 24% in FY23 and rise another 10% in FY24 to $1.28 billion.
Lantheus stock has been on an incredible run year to date, up +43% to largely outperform the broader indexes and the Medical Products Markets’ virtually flat performance. Plus, Lantheus’ P/E valuation is becoming more attractive with the rising earnings estimates and its strong performance over the last few years indicates there could still be more upside.
Image Source: Zacks Investment Research
Lantheus stock trades at $73 per share and 18.8X forward earnings which is below the industry average of 22.6X. With Lantheus being a clear industry leader, largely outperforming the broader market it still trades near the S&P 500’s 18.2X, well below its historical high of 112.7X, and slighly below the median of 19.3X.
Bottom Line
Both Henry Schein and Lantheus Holdings are standing out as bright spots in the Medical sector at the moment in regard to opportunity in thier stocks. The rising earnings estimate revisions are a good sign that the next few years could be very strong for these companies as they are currently benefiting from strong business industries.
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2 Medical Stocks to Buy Right Now
As we progress through 2023 investors should still consider diversifying their investment portfolios with equities in the Zacks Medical sector.
There is always an essential need for healthcare and here are two Zacks Rank #1 (Strong Buy) medical stocks that investors should consider buying right now.
Henry Schein (HSIC - Free Report) )
The Medical – Dental Supplies Industry is currently in the top 15% of over 250 Zacks Industries and Henry Schein stock is starting to stand out.
In addition to its Zacks Rank #1 (Strong Buy) Schein stock also sports an overall “A” VGM Style Scores grade as the company is poised to be a beneficiary of a strong business industry at the moment.
Earnings estimates are starting to trend higher for the global distributor of healthcare products and services. Schein is a leader among product offerings for dental offices and laboratories, medical and animal health practitioners, along with government and institutional healthcare clinics.
Image Source: Zacks Investment Research
Fiscal 2023 and FY24 earnings estimate revisions have gone up 4% throughout the quarter. Schein’s earnings are now expected to jump 9% in fiscal year 2023 and rise another 8% in FY24 at $5.70 per share. Sales are forecasted to be up 1% this year and rise another 4% in FY24 to $13.34 billion.
Down -15% in February, the recent dip in Schein stock is starting to look like a buying opportunity when considering higher earnings estimates and the company’s valuation. Plus, Schein stock is still up +23% over the last two years to easily top the S&P 500’s +1% and the Medical/Dental Supplies Markets +2%.
Image Source: Zacks Investment Research
Furthermore, Schein stock trades at $77 a share and 14.6X forward earnings which is nicely below the industry average of 19.8X and the company is a leader. Plus, Schein stock trades 54% below its decade-long high of 32X and at a 30% discount to the median of 20.9X.
Image Source: Zacks Investment Research
Also, last month’s decline in Schein stock following its Q4 earnings report on February 16 appears to be overdone and centered around the company’s track record of excellence on its bottom line more so than its stable but not stellar guidance.
Schein was still able to reach its Q4 EPS expectations but not posting an earnings beat came as a surprise to many with the company previously topping estimates for an astonishing 19 consecutive quarters.
Image Source: Zacks Investment Research
Lantheus (LNTH - Free Report) )
Another medical stock that is standing out right now is Lantheus Holdings with its Medical Products Industry currently in the top 43% of all Zacks Industries.
Lantheus develops, manufactures, and distributes diagnostic medical imaging agents and products for the diagnosis of cardiovascular and other diseases. Lantheus’ Growth and Momentum stand out at the moment carrying an “A” Style Scores grade for both categories.
The earnings estimate revisions are the main catalyst here as they have soared over the last 90 days. Fiscal 2023 and FY24 EPS estimates have gone up 37% and 17% respectively.
Image Source: Zacks Investment Research
Lantheus’ annual earnings are now projected to climb 13% this year and jump another 11% in FY24 at $5.32 per share. On the top line, sales are forecasted to leap 24% in FY23 and rise another 10% in FY24 to $1.28 billion.
Lantheus stock has been on an incredible run year to date, up +43% to largely outperform the broader indexes and the Medical Products Markets’ virtually flat performance. Plus, Lantheus’ P/E valuation is becoming more attractive with the rising earnings estimates and its strong performance over the last few years indicates there could still be more upside.
Image Source: Zacks Investment Research
Lantheus stock trades at $73 per share and 18.8X forward earnings which is below the industry average of 22.6X. With Lantheus being a clear industry leader, largely outperforming the broader market it still trades near the S&P 500’s 18.2X, well below its historical high of 112.7X, and slighly below the median of 19.3X.
Bottom Line
Both Henry Schein and Lantheus Holdings are standing out as bright spots in the Medical sector at the moment in regard to opportunity in thier stocks. The rising earnings estimate revisions are a good sign that the next few years could be very strong for these companies as they are currently benefiting from strong business industries.