We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights: Henry Schein, BellRing Brands, Maravai LifeSciences and National Vision Holdings
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 28, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Henry Schein, Inc. (HSIC - Free Report) , BellRing Brands, Inc. (BRBR - Free Report) , Maravai LifeSciences Holdings, Inc. (MRVI - Free Report) and National Vision Holdings, Inc. (EYE - Free Report) .
Here are highlights from Friday’s Analyst Blog:
4 Safe MedTech Bets Before Delta Strain Disrupts the Market Again
The White House recently admitted that the United States might miss President Joe Biden's July 4 mass vaccination target. Added to this, the WHO's latest statement about the Delta variant of COVID-19 "becoming the globally dominant variant of the disease" is once again creating a huge uproar across the MedTech continuum, raising a question mark on whether or not the Biden-promised all-American summer of freedom will actually be attained.
Changing MedTech Landscape — Risk Return Tradeoff
Through the pandemic months, the fortune of the MedTech space kept being at crossroads between maintaining the pre-pandemic business pattern and adapting to the pandemic-induced shift in healthcare needs. Those who fast transformed their business models as per the pandemic requirements, held their grounds strongly through those turbulent months. For the rest, the pandemic came as the decade's biggest business disaster.
This sector, however, has been gaining steam, of late, in anticipation of the economy getting back to full-fledged reopening and normalization based on the mass vaccination mission. A number of the MedTech stocks, in the last couple of months, have confirmed strong rebounds in their base businesses, which had been otherwise disrupted through the pandemic months, due to the significantly sluggish demand for non-COVID MedTech procedures.
Job Market Data Aligns with Scenario
The June–release labor market data (from the U.S. Bureau of Labor Statistics) clearly reflected this uptick, with total non-farm payroll employment rising significantly in May on notable job gains within the healthcare space. Employment in health care continued to trend higher, with 23,000 new jobs highlighting a gain in ambulatory health care services.
Will the Volatility Return with the Latest COVID Strain?
Investors are, however, once again apprehensive that the latest buzz about the highly-transmissible coronavirus Delta variant would again put the brakes on the base business recovery within the MedTech space. A Wall Street Journal Jun 22 report has stressed on urgency for the nationwide vaccination drive in the United States. This Delta variant is spreading so rapidly across the nation that it could become the dominant strain in the next two to three weeks, says the report.
Similar to the initial pandemic months, market watchers are worried about another plunge in hospital and doctors' office visits, along with deferral of procedures, which might significantly pull the prices of these stocks down.
Bet on Safer Stocks with Robust Fundamentals
A full vaccination of the nation will likely need more time and the end of the pandemic is still not in sight. Nevertheless, there are great companies trading strongly, which will continue to benefit irrespective of the market movement.
Amid such economic unrest, investors should focus on stocks that have held their ground and outshone the respective sub-industries despite the challenging business climate through the entire pandemic period based on the companies' robust business fundamentals and growth strategies.
Listed below are four MedTech stocks with a favorable Zacks Rank and solid growth parameters that investors can consider during these uncertain times.
Henry Schein: This Zacks Rank #1 (Strong Buy) stock is witnessing strong demand for its personal protective equipment (PPE) and COVID-19-related products. Of late, it has also seen a solid rebound in sales of its legacy dental and medical business. A strong solvency position is a plus.
The company has an expected earnings and sales growth rate of 35.7% and 16%, respectively, for 2021. Its long-term estimated earnings growth is pegged at 11.2%. The stock has risen 30.3% through the pandemic phase.
BellRing Brands: Through the pandemic months, growth within the company's nutrition category has been stable. Particularly, favorable macro trends, such as health and wellness, snacking and mainstreaming of protein, are driving this business momentum. At present, all of the company's channels are growing with eCommerce, food and mass leading the way.
This Zacks Rank #2 (Buy) stock has a projected earnings and sales growth rate of 39.3% and 19.7%, respectively, for fiscal 2021 (ending September 2021). Its long-term expected earnings growth rate is pegged at 21.6%. The stock has appreciated 86.4% through the pandemic phase.
Maravai LifeSciences: As a supplier of solutions to other life sciences companies, the company has been in a position to benefit from multiple tailwinds that have been influencing the sector, ranging from early discovery through clinical trials to the commercialization of healthcare products. This should get reflected in its 2021 performance.
This Zacks Rank #1 stock has a sales growth rate of a whopping 150.4% for 2021 (ending September 2021). In its first quarter of 2021, the company reported an earnings surprise of 36.8%. The stock has gained 44.7% through the pandemic phase.
National Vision Holdings: The company's contact lens category continued to see growth in average ticket as contact lens customers are increasingly adopting newer technology lenses that have higher prices -- a trend that we expect to continue. The extension of the partnership with Walmart through 2024 looks encouraging.
This Zacks Rank #1 stock has an anticipated earnings and sales growth rate of 19.8% and 17.6%, respectively, for 2021. Its long-term projected earnings growth is pegged at 23%. The stock has surged 61.9% through the pandemic phase.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It's bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is "Will you get into the right stocks early when their growth potential is greatest?"
Zacks has released a Special Report to help you do just that, and today it's free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights: Henry Schein, BellRing Brands, Maravai LifeSciences and National Vision Holdings
For Immediate Release
Chicago, IL – June 28, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Henry Schein, Inc. (HSIC - Free Report) , BellRing Brands, Inc. (BRBR - Free Report) , Maravai LifeSciences Holdings, Inc. (MRVI - Free Report) and National Vision Holdings, Inc. (EYE - Free Report) .
Here are highlights from Friday’s Analyst Blog:
4 Safe MedTech Bets Before Delta Strain Disrupts the Market Again
The White House recently admitted that the United States might miss President Joe Biden's July 4 mass vaccination target. Added to this, the WHO's latest statement about the Delta variant of COVID-19 "becoming the globally dominant variant of the disease" is once again creating a huge uproar across the MedTech continuum, raising a question mark on whether or not the Biden-promised all-American summer of freedom will actually be attained.
Changing MedTech Landscape — Risk Return Tradeoff
Through the pandemic months, the fortune of the MedTech space kept being at crossroads between maintaining the pre-pandemic business pattern and adapting to the pandemic-induced shift in healthcare needs. Those who fast transformed their business models as per the pandemic requirements, held their grounds strongly through those turbulent months. For the rest, the pandemic came as the decade's biggest business disaster.
This sector, however, has been gaining steam, of late, in anticipation of the economy getting back to full-fledged reopening and normalization based on the mass vaccination mission. A number of the MedTech stocks, in the last couple of months, have confirmed strong rebounds in their base businesses, which had been otherwise disrupted through the pandemic months, due to the significantly sluggish demand for non-COVID MedTech procedures.
Job Market Data Aligns with Scenario
The June–release labor market data (from the U.S. Bureau of Labor Statistics) clearly reflected this uptick, with total non-farm payroll employment rising significantly in May on notable job gains within the healthcare space. Employment in health care continued to trend higher, with 23,000 new jobs highlighting a gain in ambulatory health care services.
Will the Volatility Return with the Latest COVID Strain?
Investors are, however, once again apprehensive that the latest buzz about the highly-transmissible coronavirus Delta variant would again put the brakes on the base business recovery within the MedTech space. A Wall Street Journal Jun 22 report has stressed on urgency for the nationwide vaccination drive in the United States. This Delta variant is spreading so rapidly across the nation that it could become the dominant strain in the next two to three weeks, says the report.
Similar to the initial pandemic months, market watchers are worried about another plunge in hospital and doctors' office visits, along with deferral of procedures, which might significantly pull the prices of these stocks down.
Bet on Safer Stocks with Robust Fundamentals
A full vaccination of the nation will likely need more time and the end of the pandemic is still not in sight. Nevertheless, there are great companies trading strongly, which will continue to benefit irrespective of the market movement.
Amid such economic unrest, investors should focus on stocks that have held their ground and outshone the respective sub-industries despite the challenging business climate through the entire pandemic period based on the companies' robust business fundamentals and growth strategies.
Listed below are four MedTech stocks with a favorable Zacks Rank and solid growth parameters that investors can consider during these uncertain times.
Henry Schein: This Zacks Rank #1 (Strong Buy) stock is witnessing strong demand for its personal protective equipment (PPE) and COVID-19-related products. Of late, it has also seen a solid rebound in sales of its legacy dental and medical business. A strong solvency position is a plus.
The company has an expected earnings and sales growth rate of 35.7% and 16%, respectively, for 2021. Its long-term estimated earnings growth is pegged at 11.2%. The stock has risen 30.3% through the pandemic phase.
BellRing Brands: Through the pandemic months, growth within the company's nutrition category has been stable. Particularly, favorable macro trends, such as health and wellness, snacking and mainstreaming of protein, are driving this business momentum. At present, all of the company's channels are growing with eCommerce, food and mass leading the way.
This Zacks Rank #2 (Buy) stock has a projected earnings and sales growth rate of 39.3% and 19.7%, respectively, for fiscal 2021 (ending September 2021). Its long-term expected earnings growth rate is pegged at 21.6%. The stock has appreciated 86.4% through the pandemic phase.
Maravai LifeSciences: As a supplier of solutions to other life sciences companies, the company has been in a position to benefit from multiple tailwinds that have been influencing the sector, ranging from early discovery through clinical trials to the commercialization of healthcare products. This should get reflected in its 2021 performance.
This Zacks Rank #1 stock has a sales growth rate of a whopping 150.4% for 2021 (ending September 2021). In its first quarter of 2021, the company reported an earnings surprise of 36.8%. The stock has gained 44.7% through the pandemic phase.
National Vision Holdings: The company's contact lens category continued to see growth in average ticket as contact lens customers are increasingly adopting newer technology lenses that have higher prices -- a trend that we expect to continue. The extension of the partnership with Walmart through 2024 looks encouraging.
This Zacks Rank #1 stock has an anticipated earnings and sales growth rate of 19.8% and 17.6%, respectively, for 2021. Its long-term projected earnings growth is pegged at 23%. The stock has surged 61.9% through the pandemic phase.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It's bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is "Will you get into the right stocks early when their growth potential is greatest?"
Zacks has released a Special Report to help you do just that, and today it's free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.