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 Becton Dickinson, Phibro Animal Health, McKesson, and UnitedHealth Group
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 11, 2022 – 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 Becton, Dickinson and Co. (BDX - Free Report) , Phibro Animal Health Corp. (PAHC - Free Report) , McKesson Corp. (MCK - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Bet on These 4 Low-Beta, High-Dividend MedTech Stocks
Healthcare has traditionally been one of the most stable and recession-resistant sectors. Irrespective of the in-hand income status, everyone needs healthcare at some point.
Going by a WHO report, about $8.3 trillion is spent on healthcare globally and almost $3.8 trillion in the United States alone. With the healthcare sector growing considerably faster than the overall global economy, these numbers will likely swell by the end of the decade.
Specifically, the COVID-19 pandemic pushed MedTech, a major healthcare wing, into the limelight. Over the past couple of years, medical devices and supplies have been in demand consistently, with ventilators, diagnostic equipment, and PPE being needed by healthcare systems struggling to fight the global crisis. For 2022, data shows that MedTech has not only weathered major challenges but has entered a period of renewal.
However, considering the ongoing emergence of new COVID-19 variants across the globe, investors keen on MedTech stocks should ideally focus on low-beta and high-yield dividend MedTech companies with sustainable business models and a long track of profitability. Considering this, stocks like Becton, Dickinson and Co., Phibro Animal Health Corp., McKesson Corp., and UnitedHealth Group Inc. seem like the right picks.
Dividend Yield Stocks With Low Beta: A Winning Strategy
Amid the market turmoil, it is prudent to adopt a longer-term investing strategy and pick some dividend-paying, low-beta MedTech stocks which are fundamentally strong.
Dividend acts as a major source of consistent income for investors in any market though it does not offer impressive price appreciation. While several dividend stocks could provide capital appreciation, focusing on those with a history of dividend growth should lead to a healthy portfolio with greater scope for capital appreciation instead of simple dividend-paying stocks or those with high yields.
One measure that captures the downside protection provided by these stocks is beta, which calculates an individual stock's volatility versus the overall market. Any beta below 1.0 indicates a stock that is less volatile than the market. The calming effect of lower beta is most apparent during periods of stock market decline.
We suggest investors consider stocks with low beta (less than 1), which tend to be less volatile with rising dividend yield.
Choosing the Right Stocks
We have used the Zacks Stock Screener to narrow down on three stocks that provide regular dividends with low beta and have a favorable Zacks Rank.
Becton, Dickinson and Company (also known as BD) is witnessing significant improvement in base revenues and robust performances by the majority of its segments. BD Medical segment's Medication Delivery Solutions business recorded strong growth in the United States in the reported quarter, particularly in catheters and vascular care products.
The strength in Pharmaceutical Systems on the back of continued strong demand for pre-fillable devices enabled by capacity expansion is promising. BD has collaborated with ReturnSafe (the all-in-one software solution for COVID-19 employee health, safety and compliance) in February to integrate the BD Veritor At-Home COVID-19 Test directly within the ReturnSafe testing management platform. Moreover, a raised financial outlook for fiscal 2022 buoys optimism.
BD, carrying a Zacks Rank #2 (Buy), raised its dividend six times in the past five years, with its payout growing 29% over the period. BDX has a 5-year annualized dividend growth rate of 3.55%. It has a beta of 0.65.
Phibro's fiscal second quarter marked the highest single quarter of sales in the company's history. Robust performances by the Animal Health and Mineral Health segments buoy optimism. The company's raised revenue and EPS guidance for fiscal 2022 on improving business trends instill confidence in the stock.
Phibro's existing operations and established sales, marketing and distribution network in more than 75 countries provide it with ample scope to take advantage of global growth opportunities. Moreover, Phibro is focusing on new developments along with incremental registrations and growing volumes of existing nutritional specialties and vaccine technologies.
Phibro, carrying a Zacks Rank #2, raised its dividend once in the past five years, with its payout growing 38% over the period. PAHC has a 5-year annualized dividend growth rate of 4.71%. It has a beta of 0.52.
McKesson's strong position in the Distribution market continues to favor the stock. The company played a crucial role in the COVID-19 response efforts in the United States and abroad via the distribution of COVID-19 vaccines, ancillary supply kits and COVID-19 tests. The company played a key role in the COVID-19 response efforts in the United States and abroad by distributing COVID-19 vaccines, ancillary supply kits and COVID-19 tests.
Its strong business model and differentiated capabilities aided business growth and delivered value to shareholders. Furthermore, McKesson continues to actively pursue deals, divestitures and acquisitions to drive growth.
McKesson, carrying a Zacks Rank #2, raised its dividend five times in the past five years, with its payout growing 8% over the period. MCK has a 5-year annualized dividend growth rate of 8.41%. It has a beta of 0.72.
UnitedHealth Group's top line has been growing and the momentum should continue in the years ahead on the back of a strong market position and an attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings. Its expansion of the health services segment and international business provides significant diversification benefits and shields against stringent regulations in the United States. For 2022, the company expects revenues in the range of $317-$320 billion, the midpoint of which indicates an upside of 10.7% from the 2021 reported figure.
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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 Becton Dickinson, Phibro Animal Health, McKesson, and UnitedHealth Group
For Immediate Release
Chicago, IL – April 11, 2022 – 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 Becton, Dickinson and Co. (BDX - Free Report) , Phibro Animal Health Corp. (PAHC - Free Report) , McKesson Corp. (MCK - Free Report) and UnitedHealth Group Inc. (UNH - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Bet on These 4 Low-Beta, High-Dividend MedTech Stocks
Healthcare has traditionally been one of the most stable and recession-resistant sectors. Irrespective of the in-hand income status, everyone needs healthcare at some point.
Going by a WHO report, about $8.3 trillion is spent on healthcare globally and almost $3.8 trillion in the United States alone. With the healthcare sector growing considerably faster than the overall global economy, these numbers will likely swell by the end of the decade.
Specifically, the COVID-19 pandemic pushed MedTech, a major healthcare wing, into the limelight. Over the past couple of years, medical devices and supplies have been in demand consistently, with ventilators, diagnostic equipment, and PPE being needed by healthcare systems struggling to fight the global crisis. For 2022, data shows that MedTech has not only weathered major challenges but has entered a period of renewal.
However, considering the ongoing emergence of new COVID-19 variants across the globe, investors keen on MedTech stocks should ideally focus on low-beta and high-yield dividend MedTech companies with sustainable business models and a long track of profitability. Considering this, stocks like Becton, Dickinson and Co., Phibro Animal Health Corp., McKesson Corp., and UnitedHealth Group Inc. seem like the right picks.
Dividend Yield Stocks With Low Beta: A Winning Strategy
Amid the market turmoil, it is prudent to adopt a longer-term investing strategy and pick some dividend-paying, low-beta MedTech stocks which are fundamentally strong.
Dividend acts as a major source of consistent income for investors in any market though it does not offer impressive price appreciation. While several dividend stocks could provide capital appreciation, focusing on those with a history of dividend growth should lead to a healthy portfolio with greater scope for capital appreciation instead of simple dividend-paying stocks or those with high yields.
One measure that captures the downside protection provided by these stocks is beta, which calculates an individual stock's volatility versus the overall market. Any beta below 1.0 indicates a stock that is less volatile than the market. The calming effect of lower beta is most apparent during periods of stock market decline.
We suggest investors consider stocks with low beta (less than 1), which tend to be less volatile with rising dividend yield.
Choosing the Right Stocks
We have used the Zacks Stock Screener to narrow down on three stocks that provide regular dividends with low beta and have a favorable Zacks Rank.
Becton, Dickinson and Company (also known as BD) is witnessing significant improvement in base revenues and robust performances by the majority of its segments. BD Medical segment's Medication Delivery Solutions business recorded strong growth in the United States in the reported quarter, particularly in catheters and vascular care products.
The strength in Pharmaceutical Systems on the back of continued strong demand for pre-fillable devices enabled by capacity expansion is promising. BD has collaborated with ReturnSafe (the all-in-one software solution for COVID-19 employee health, safety and compliance) in February to integrate the BD Veritor At-Home COVID-19 Test directly within the ReturnSafe testing management platform. Moreover, a raised financial outlook for fiscal 2022 buoys optimism.
Becton, Dickinson and Company price | Becton, Dickinson and Company Quote
BD, carrying a Zacks Rank #2 (Buy), raised its dividend six times in the past five years, with its payout growing 29% over the period. BDX has a 5-year annualized dividend growth rate of 3.55%. It has a beta of 0.65.
Phibro's fiscal second quarter marked the highest single quarter of sales in the company's history. Robust performances by the Animal Health and Mineral Health segments buoy optimism. The company's raised revenue and EPS guidance for fiscal 2022 on improving business trends instill confidence in the stock.
Phibro's existing operations and established sales, marketing and distribution network in more than 75 countries provide it with ample scope to take advantage of global growth opportunities. Moreover, Phibro is focusing on new developments along with incremental registrations and growing volumes of existing nutritional specialties and vaccine technologies.
Phibro Animal Health Corporation price | Phibro Animal Health Corporation Quote
Phibro, carrying a Zacks Rank #2, raised its dividend once in the past five years, with its payout growing 38% over the period. PAHC has a 5-year annualized dividend growth rate of 4.71%. It has a beta of 0.52.
McKesson's strong position in the Distribution market continues to favor the stock. The company played a crucial role in the COVID-19 response efforts in the United States and abroad via the distribution of COVID-19 vaccines, ancillary supply kits and COVID-19 tests. The company played a key role in the COVID-19 response efforts in the United States and abroad by distributing COVID-19 vaccines, ancillary supply kits and COVID-19 tests.
Its strong business model and differentiated capabilities aided business growth and delivered value to shareholders. Furthermore, McKesson continues to actively pursue deals, divestitures and acquisitions to drive growth.
McKesson Corporation price | McKesson Corporation Quote
McKesson, carrying a Zacks Rank #2, raised its dividend five times in the past five years, with its payout growing 8% over the period. MCK has a 5-year annualized dividend growth rate of 8.41%. It has a beta of 0.72.
UnitedHealth Group's top line has been growing and the momentum should continue in the years ahead on the back of a strong market position and an attractive core business that continues to be driven by new deals, renewed agreements and expansion of service offerings. Its expansion of the health services segment and international business provides significant diversification benefits and shields against stringent regulations in the United States. For 2022, the company expects revenues in the range of $317-$320 billion, the midpoint of which indicates an upside of 10.7% from the 2021 reported figure.
UnitedHealth Group Incorporated price | UnitedHealth Group Incorporated Quote
United Health, carrying a Zacks Rank #2, raised its dividend five times in the past five years, with its payout growing 31% over the period. UNH has a 5-year annualized dividend growth rate of 17.18%. It has a beta of 0.88. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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.