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Here's Why You Should Retain Integer Holdings (ITGR) Stock Now

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Integer Holdings Corporation (ITGR - Free Report) is well-poised for growth on portfolio management, and strong presence in the broader MedTech space. However, stiff competition remains a concern.

Shares of Integer Holdings have gained 12.9% on a year-to-date basis, compared with the industry’s growth of 0.9%. Meanwhile, the S&P 500 Index rose 4.3% in the same time frame.

The company, with a market capitalization of $3.02 billion, manufactures and develops medical devices and components primarily for original equipment manufacturers (OEMs), which depend on it to design, develop and produce intellectual property protected medical device technologies. Moreover, it has a trailing four-quarter earnings surprise of 17.2%, on average.



Let’s take a closer look at the factors that substantiate the company’s Zacks Rank #3 (Hold).

What’s Deterring the Stock?

Integer Holdings currently operates in the highly competitive MedTech market. Consequently, intense competition remains a headwind.

What’s Favoring the Stock?

Integer Holdings has initiated a new approach to drive sales and profitable growth, following a comprehensive strategic review of the business. The company’s new strategy has two overarching themes that are focused on portfolio management and operational excellence. This will help the company to realize its vision of enhancing patient lives.

Based on consistent efforts to simplify operations, Integer Holdings has been exhibiting profitability since the last couple of quarters and we expect the momentum to continue in the near term.

Management also announced that it has been witnessing revenue growth faster than markets and profits twice the rate of revenue growth. The company plans to invest more in the areas of Cardio & Vascular, Neuromodulation, and Electrochem to accelerate sales and market penetration. Integer Holdings has also been enhancing profitability in areas of Advanced Surgical, Orthopedics, and Power Solutions through focused sales growth and cost structure initiatives.

Further, the company continues to benefit from strong presence in the broader MedTech space. This, in turn, will drive overall performance.

Estimates Trend

For 2021, the Zacks Consensus Estimate for revenues is pegged at $1.19 billion, indicating an improvement of 10.4% from the year-ago period. The same for earnings stands at $3.72 per share, suggesting growth of 34.3% from the previous year.

Stocks to Consider

Some better-ranked stocks from the broader medical space are HillRom Holdings, Inc. , Abbott Laboratories (ABT - Free Report) and McKesson Corporation (MCK - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

HillRom Holdings has a projected long-term earnings growth rate of 7.3%.

Abbott has an estimated long-term earnings growth rate of 14.1%.

McKesson has a projected long-term earnings growth rate of 7.2%.

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