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.
3 Medical Products Stocks Poised to Beat This Earnings Season
Read MoreHide Full Article
Despite the COVID-19 resurgences, so far, the fourth-quarter reporting cycle has exhibited improvement for the Medical Products companies within the broader Medical sector. It is worth mentioning that the Medical sector is expected to be one of the seven strongest earnings growth sectors for the fourth quarter.
Per the latest Earnings Preview, 33.9% of the companies in the Medical sector, constituting nearly 53.7% of the sector’s market capitalization, reported earnings till Feb 2. Earnings improved 10% year over year on 12.1% higher revenues. A total of 36.8% of the companies’ earnings and revenues beat the Zacks Consensus Estimate.
This scorecard highlights stability in the United States, courtesy of continued economic reopening amid the resurgence of COVID-19 cases. However, this resurgence has resulted in supply chain-related disruption that still persists. Also, several of the COVID-affected international market are still suffering due to lower cash flows and challenging economic conditions.
The companies in the Medical Products space saw sequential decline in collective business with respect to the legacy base business in the third quarter. On a positive note, the fourth-quarter reporting cycle so far has shown recovery in terms of such business despite the COVID-19 resurgence. Substantial increase in vaccination drives has been helping people gradually get back to pre-pandemic normalcy. This, in turn, is likely to have resulted in somewhat of a recovery with respect to hospital visits and hospital base businesses in the ongoing reporting cycle, which in turn might have boosted non-COVID and elective legacy businesses of the Medical sector. Although companies are witnessing sequential recovery in their base businesses, the overall trend improvement is still below the pre-COVID level.
Meanwhile, due to the COVID-19 resurgences and rise in the number of cases, testing, vaccine and therapeutic makers witnessed huge market adoption of their COVID-related healthcare support products and services in the fourth quarter. Diagnostic testing stocks have shown tremendous growth so far, led by an increase COVID-19 testing demand, in line with industry trends. For instance, in the fourth quarter, Abbott Laboratories’ (ABT - Free Report) underlying legacy diagnostics business continued to improve. This was driven by strength in ABT’s COVID-19 testing-related sales on the back of strong demand for BinaxNOW, Panbio and ID NOW rapid testing platforms. Abbott’s rapid diagnostics and point of care diagnostics sales both rose organically.
Stocks Likely to Outshine Q4 Earnings Estimates
Given the high degree of diversity in the Medical Products industry, finding the right stocks with the potential to beat estimates might be quite a daunting task.
However, our proprietary Zacks methodology, makes this fairly simple.
Our research shows that for stocks with this combination, chances of a positive earnings surprise are as high as 70%.
Earnings ESP provides the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here we present three stocks that are expected to beat earnings estimates in this reporting cycle.
Baxter International, Inc. (BAX - Free Report) : Increased demand for acute therapies products due to the COVID-19 pandemic, and continuous renal replacement therapies (CRRT), devices and associated consumables are likely to have driven Baxter’s Acute Therapies business’ fourth-quarter 2021 performance. BAX’s strong product portfolio, and the planned launch of therapies and products might get reflected in the fourth-quarter revenues.
The combination of Baxter’s Earnings ESP of +3.50% and a Zacks Rank #2 raises the possibility of an earnings surprise in the to-be-reported quarter.
The company is scheduled to release fourth-quarter results on Feb 17, before market open.
Henry Schein, Inc. (HSIC - Free Report) : Per the third-quarter 2021 earnings call, the company has been witnessing strengthening demand in the global dental and medical markets on the gradual reopening of practices and stable patient traffic globally over the past few months, even in countries with more stringent lockdown rules. This recovery trend is likely to have continued through the entire fourth quarter, thus boosting the company’s top line.
HSIC is slated to release fourth-quarter 2021 results on Feb 15.
Henry Schein has an Earnings ESP of +1.94% and a Zacks Rank #2.
DENTSPLY SIRONA Inc. (XRAY - Free Report) : DENTSPLY SIRONA’s Consumables segment is likely to have witnessed improvement in revenues in the fourth quarter. Rebound in sales of all product categories might have contributed to the upside. Technologies & Equipment segment may have exhibited growth in the to-be-reported quarter, courtesy of recovery in across all product categories.
XRAY is set to release fourth-quarter 2021 results on Feb 28.
DENTSPLY SIRONA has an Earnings ESP of +1.06% and a Zacks Rank #3.
Image: Bigstock
3 Medical Products Stocks Poised to Beat This Earnings Season
Despite the COVID-19 resurgences, so far, the fourth-quarter reporting cycle has exhibited improvement for the Medical Products companies within the broader Medical sector. It is worth mentioning that the Medical sector is expected to be one of the seven strongest earnings growth sectors for the fourth quarter.
Per the latest Earnings Preview, 33.9% of the companies in the Medical sector, constituting nearly 53.7% of the sector’s market capitalization, reported earnings till Feb 2. Earnings improved 10% year over year on 12.1% higher revenues. A total of 36.8% of the companies’ earnings and revenues beat the Zacks Consensus Estimate.
This scorecard highlights stability in the United States, courtesy of continued economic reopening amid the resurgence of COVID-19 cases. However, this resurgence has resulted in supply chain-related disruption that still persists. Also, several of the COVID-affected international market are still suffering due to lower cash flows and challenging economic conditions.
The companies in the Medical Products space saw sequential decline in collective business with respect to the legacy base business in the third quarter. On a positive note, the fourth-quarter reporting cycle so far has shown recovery in terms of such business despite the COVID-19 resurgence. Substantial increase in vaccination drives has been helping people gradually get back to pre-pandemic normalcy. This, in turn, is likely to have resulted in somewhat of a recovery with respect to hospital visits and hospital base businesses in the ongoing reporting cycle, which in turn might have boosted non-COVID and elective legacy businesses of the Medical sector. Although companies are witnessing sequential recovery in their base businesses, the overall trend improvement is still below the pre-COVID level.
Meanwhile, due to the COVID-19 resurgences and rise in the number of cases, testing, vaccine and therapeutic makers witnessed huge market adoption of their COVID-related healthcare support products and services in the fourth quarter. Diagnostic testing stocks have shown tremendous growth so far, led by an increase COVID-19 testing demand, in line with industry trends. For instance, in the fourth quarter, Abbott Laboratories’ (ABT - Free Report) underlying legacy diagnostics business continued to improve. This was driven by strength in ABT’s COVID-19 testing-related sales on the back of strong demand for BinaxNOW, Panbio and ID NOW rapid testing platforms. Abbott’s rapid diagnostics and point of care diagnostics sales both rose organically.
Stocks Likely to Outshine Q4 Earnings Estimates
Given the high degree of diversity in the Medical Products industry, finding the right stocks with the potential to beat estimates might be quite a daunting task.
However, our proprietary Zacks methodology, makes this fairly simple.
We are focusing on stocks that have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Our research shows that for stocks with this combination, chances of a positive earnings surprise are as high as 70%.
Earnings ESP provides the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here we present three stocks that are expected to beat earnings estimates in this reporting cycle.
Baxter International, Inc. (BAX - Free Report) : Increased demand for acute therapies products due to the COVID-19 pandemic, and continuous renal replacement therapies (CRRT), devices and associated consumables are likely to have driven Baxter’s Acute Therapies business’ fourth-quarter 2021 performance. BAX’s strong product portfolio, and the planned launch of therapies and products might get reflected in the fourth-quarter revenues.
The combination of Baxter’s Earnings ESP of +3.50% and a Zacks Rank #2 raises the possibility of an earnings surprise in the to-be-reported quarter.
The company is scheduled to release fourth-quarter results on Feb 17, before market open.
Baxter International Inc. Price and EPS Surprise
Baxter International Inc. price-eps-surprise | Baxter International Inc. Quote
Henry Schein, Inc. (HSIC - Free Report) : Per the third-quarter 2021 earnings call, the company has been witnessing strengthening demand in the global dental and medical markets on the gradual reopening of practices and stable patient traffic globally over the past few months, even in countries with more stringent lockdown rules. This recovery trend is likely to have continued through the entire fourth quarter, thus boosting the company’s top line.
HSIC is slated to release fourth-quarter 2021 results on Feb 15.
Henry Schein has an Earnings ESP of +1.94% and a Zacks Rank #2.
Henry Schein, Inc. Price and EPS Surprise
Henry Schein, Inc. price-eps-surprise | Henry Schein, Inc. Quote
DENTSPLY SIRONA Inc. (XRAY - Free Report) : DENTSPLY SIRONA’s Consumables segment is likely to have witnessed improvement in revenues in the fourth quarter. Rebound in sales of all product categories might have contributed to the upside. Technologies & Equipment segment may have exhibited growth in the to-be-reported quarter, courtesy of recovery in across all product categories.
XRAY is set to release fourth-quarter 2021 results on Feb 28.
DENTSPLY SIRONA has an Earnings ESP of +1.06% and a Zacks Rank #3.
DENTSPLY SIRONA Inc. Price and EPS Surprise
DENTSPLY SIRONA Inc. price-eps-surprise | DENTSPLY SIRONA Inc. Quote
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.