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Sporting a Zacks Rank #1 (Strong Buy) BellRing Brands is worthy of consideration after easily topping its fiscal second-quarter expectations on Monday.
BellRing’s Medical-Products Industry is also in the top 38% of over 250 Zacks industries and the company is benefiting as a distributor of nutrition products. Along with protein shakes, BellRing offers other RTD beverages, powders, nutrition bars, and supplements.
Q2 Review: BellRing easily topped its Q2 EPS expectations by 14% at $0.24 per share compared to EPS estimates of $0.21. This was up 4% from the prior-year quarter. Second-quarter sales beat estimates by 4% at $385.60 million, and climbed 22% from Q2 2022.
More intriguing, BellRing has now topped earnings expectations for six consecutive quarters with earnings estimate revisions starting to trend higher for the nutrition guru.
Image Source: Zacks Investment Research
BellRing’s growth and earnings potential is starting to look more attractive since the company launched its IPO in 2019. Trading at $35 a share, BellRing’s earnings are now forecasted to rise 8% this year and climb another 20% in FY24 at $1.51 per share. Plus, fiscal 2024 EPS projections would represent 147% growth over the last five years with 2020 earnings at $0.61 per share.
Another medical stock that looks attractive at the moment is DaVita Inc which sports a Zacks Rank #2 (Buy). DaVita’s Medical-Outpatient and Home Healthcare Industry is in the top 47% of all Zacks industries and the company was able to impressively beat its first-quarter expectations on Monday.
With a strong business environment, DaVita stands out as a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure.
Q1 Review: DaVita’s outlook is brightening after blasting Q1 earnings estimates by 46%. First-quarter earnings came in at $1.58 per share compared to EPS estimates of $1.08. Earnings were slightly down -2% YoY from a very tough to-compete-against prior-year quarter.
Still, DaVita’s bottom-line results were stellar and the company also beat Q1 top-line estimates by 1% with sales at $2.87 billion. This was up 2% from the prior-year quarter.
Image Source: Zacks Investment Research
Trading at $95 a share, DaVita’s annual bottom line is regaining steam and stabilizing after Covid-19 greatly boosted the company’s growth throughout the pandemic.
To that point, DaVita’s earnings are now forecasted to dip -1% in FY23 but rebound and jump 13% in FY24 at $7.33 per share. Plus, earnings estimate revisions have trended higher over the last week.
On the top line, sales are projected to be up 1% this year and rise another 3% in FY24 to $12.09 billion. More intriguingly, sales have continued to increase over the last few years and have not curtailed as we move past the Covid-19 pandemic which flared the need for kidney treatments as these patients were at higher risk.
Image Source: Zacks Investment Research
Takeaway
BellRing and DaVita stocks are looking attractive after their strong quarterly results which was a good sign that growth and sustainability could continue. There should be more near-term upside for both stocks but more importantly, they are starting to look like viable investments for 2023 and beyond.
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2 Top-Rated Medical Stocks to Buy After Earnings
As we round out this week’s earnings lineup, a few healthcare companies are standing out after topping their quarterly earnings expectations.
Here are two top-rated Zacks Medical sector stocks that investors may want to consider buying after reporting strong quarterly results.
BellRing Brands (BRBR - Free Report) )
Sporting a Zacks Rank #1 (Strong Buy) BellRing Brands is worthy of consideration after easily topping its fiscal second-quarter expectations on Monday.
BellRing’s Medical-Products Industry is also in the top 38% of over 250 Zacks industries and the company is benefiting as a distributor of nutrition products. Along with protein shakes, BellRing offers other RTD beverages, powders, nutrition bars, and supplements.
Q2 Review: BellRing easily topped its Q2 EPS expectations by 14% at $0.24 per share compared to EPS estimates of $0.21. This was up 4% from the prior-year quarter. Second-quarter sales beat estimates by 4% at $385.60 million, and climbed 22% from Q2 2022.
More intriguing, BellRing has now topped earnings expectations for six consecutive quarters with earnings estimate revisions starting to trend higher for the nutrition guru.
Image Source: Zacks Investment Research
BellRing’s growth and earnings potential is starting to look more attractive since the company launched its IPO in 2019. Trading at $35 a share, BellRing’s earnings are now forecasted to rise 8% this year and climb another 20% in FY24 at $1.51 per share. Plus, fiscal 2024 EPS projections would represent 147% growth over the last five years with 2020 earnings at $0.61 per share.
Image Source: Zacks Investment Research
DaVita ((DVA - Free Report) )
Another medical stock that looks attractive at the moment is DaVita Inc which sports a Zacks Rank #2 (Buy). DaVita’s Medical-Outpatient and Home Healthcare Industry is in the top 47% of all Zacks industries and the company was able to impressively beat its first-quarter expectations on Monday.
With a strong business environment, DaVita stands out as a leading provider of dialysis services in the U.S. to patients suffering from chronic kidney failure.
Q1 Review: DaVita’s outlook is brightening after blasting Q1 earnings estimates by 46%. First-quarter earnings came in at $1.58 per share compared to EPS estimates of $1.08. Earnings were slightly down -2% YoY from a very tough to-compete-against prior-year quarter.
Still, DaVita’s bottom-line results were stellar and the company also beat Q1 top-line estimates by 1% with sales at $2.87 billion. This was up 2% from the prior-year quarter.
Image Source: Zacks Investment Research
Trading at $95 a share, DaVita’s annual bottom line is regaining steam and stabilizing after Covid-19 greatly boosted the company’s growth throughout the pandemic.
To that point, DaVita’s earnings are now forecasted to dip -1% in FY23 but rebound and jump 13% in FY24 at $7.33 per share. Plus, earnings estimate revisions have trended higher over the last week.
On the top line, sales are projected to be up 1% this year and rise another 3% in FY24 to $12.09 billion. More intriguingly, sales have continued to increase over the last few years and have not curtailed as we move past the Covid-19 pandemic which flared the need for kidney treatments as these patients were at higher risk.
Image Source: Zacks Investment Research
Takeaway
BellRing and DaVita stocks are looking attractive after their strong quarterly results which was a good sign that growth and sustainability could continue. There should be more near-term upside for both stocks but more importantly, they are starting to look like viable investments for 2023 and beyond.