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Here's Why You Should Retain IQVIA Holdings (IQV) Stock For Now

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IQVIA Holdings Inc. (IQV - Free Report) has had an impressive run on the bourse over the past year. The company’s shares have gained 49.9% against 37.8% decline of the industry it belongs to.

IQVIA has an impressive Growth Score of A. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.

The company has an expected long-term earnings per share (three to five years) growth rate of 16.2%. Further, earnings are anticipated to register growth of 38.8% and 13.3% in 2021 and 2022, respectively.

What’s Supporting the Rally?

The reasons behind IQVIA's growing client base are its abilities to standardize, organize and integrate its enormous treasure trove of data by applying sophisticated analytics and global technology infrastructure. The company’s huge collection of comprehensive, longitudinal, non-identified patient records across sales, prescription and promotional data, electronic medical records, medical claims, genomics, and social media is a distinguishing asset and perhaps a significant barrier to entry for competitors.

IQVIA’s addressable market size is around $260 billion and consists of outsourced research and development, real-world evidence and connected health, and technology-enabled clinical and commercial operations markets. The company aims to expand and penetrate these markets through innovating and improving its offerings using its information, advanced analytics, transformative technology and significant domain expertise.

Debt Woes Stay

IQVIA’s cash and cash equivalent balance of $1.47 billion at the end of third-quarter 2021 was well below the long-term debt level of $12.1 billion underscoring that the company doesn’t have enough cash to meet this debt burden. The cash level, however, can meet the short-term debt of $91 million.

Zacks Rank and Stocks to Consider

IQVIA currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Avis Budget (CAR - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .

Avis Budgethas an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 500.9% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks Rank #1 (Strong Buy).

Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 202.3% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN carries a Zacks Rank #1.

CRA International has an expected earnings growth rate of around 61.2% for the current year. CRAI has a trailing four-quarter earnings surprise of 51%, on average.

CRA International’s shares have surged 82% in the past year. CRAI has a long-term earnings growth of 15.5%. The stock carries a Zacks Rank #2 (Buy).