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3 Medical Stocks Creating Wealth Despite Macro Challenges
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The broader U.S. indices, reflecting market sentiments, have been reeling under significant pressure in 2022, with companies from the majority of sectors facing several headwinds like a hawkish Fed, geopolitical issues and lingering COVID-19 uncertainties.
However, several companies managed to buck the trend and created wealth for their investors, driven by strong fundamentals. Some companies also initiated cost-savings programs along with price hikes to fight the rising cost of materials that benefited their margins.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
All these three stocks have witnessed a strong rally so far this year, significantly beating the S&P 500’s performance. Shares of Lantheus, Omeros and Hyperfine have surged 57.9%, 78.3% and 48.2%, respectively, compared with 4% increase of the S&P 500 Index so far this year. Lantheus sports a Zacks Rank #1 (Strong Buy) while Omeros and Hyperfine carry a Zacks Rank #2 (Buy), indicating positive revisions in their respective earnings expectations. Let’s take a closer look at each one. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lantheus
Lantheus is involved in developing, manufacturing, selling and distributing diagnostic medical imaging agents and products for diagnosing cardiovascular and other diseases. The company reported robust top- and bottom-line growth for the fourth quarter of fiscal 2022 on the back of its key product, Pylarify — the PSMA PET imaging agent of choice. Strong quarterly results led the company to estimate its revenue and adjusted earnings to be $1.140 billion - $1.160 billion and $4.95 - $5.10 per share, respectively, for 2023. The guidance implies revenue growth of 30% and earnings growth of 19.1% at the mid-point of the guided ranges.
The Zacks Consensus Estimate for its current fiscal year (fiscal 2023) earnings is $4.79, implying a year-over-year improvement of 13.5%. The FY24 estimates suggest a further 11.1% bottom-line growth. Estimates for FY23 and FY24 earnings improved 12.7% and 14.7%, respectively, in the past 30 days.
The expected year-over-year revenue uptick for FY23 is 24.3%, while that for FY24 is 9.7%.
Lantheus beat earnings estimates in all the past four quarters, with the average surprise being 50.00%.
It is a clinical-stage biopharmaceutical company committed to discovering, developing and commercializing products focused on inflammation and disorders of the central nervous system. Omeros has four ongoing PharmacoSurgery(TM) clinical development programs, and its lead product candidate, OMS103HP, is being evaluated in phase III clinical studies for use during arthroscopic surgery to improve postoperative joint function and reduce postoperative pain.
The Zacks Consensus Estimate for its current fiscal year (fiscal 2023) loss is $2.31, implying a year-over-year improvement of 16.6%. The FY24 estimates suggest a further 25.3% bottom-line improvement. Estimates for FY23 and FY24 loss have widened in the past 30 days.
Hyperfine is a groundbreaking medical device company, which created Swoop, the first FDA-cleared portable MRI system. The company received multiple FDA clearances and international approvals in the past few months for AI-powered software upgrades to Swoop. It installed 35 commercial systems for full-year 2022. Hyperfine expects full-year revenues for 2023 to be $10 to $14 million.
The Zacks Consensus Estimate for its current fiscal year (fiscal 2023) loss is 67 cents, implying a year-over-year improvement of 35.6%. Estimates for FY23 earnings improved 30% in the past 30 days.
The expected year-over-year revenue uptick for FY23 is 68.8%.
Hyperfine delivered a four-quarter average earnings surprise of 25.46%.
Image: Bigstock
3 Medical Stocks Creating Wealth Despite Macro Challenges
The broader U.S. indices, reflecting market sentiments, have been reeling under significant pressure in 2022, with companies from the majority of sectors facing several headwinds like a hawkish Fed, geopolitical issues and lingering COVID-19 uncertainties.
However, several companies managed to buck the trend and created wealth for their investors, driven by strong fundamentals. Some companies also initiated cost-savings programs along with price hikes to fight the rising cost of materials that benefited their margins.
Three stocks — Lantheus (LNTH - Free Report) , Omeros (OMER - Free Report) and Hyperfine (HYPR - Free Report) — have managed to rise nearly or more than 50% year to date in 2023.
Below is a chart illustrating the year-to-date performance of all three stocks, with the S&P 500 blended in as a benchmark.
Image Source: Zacks Investment Research
All these three stocks have witnessed a strong rally so far this year, significantly beating the S&P 500’s performance. Shares of Lantheus, Omeros and Hyperfine have surged 57.9%, 78.3% and 48.2%, respectively, compared with 4% increase of the S&P 500 Index so far this year. Lantheus sports a Zacks Rank #1 (Strong Buy) while Omeros and Hyperfine carry a Zacks Rank #2 (Buy), indicating positive revisions in their respective earnings expectations. Let’s take a closer look at each one. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lantheus
Lantheus is involved in developing, manufacturing, selling and distributing diagnostic medical imaging agents and products for diagnosing cardiovascular and other diseases. The company reported robust top- and bottom-line growth for the fourth quarter of fiscal 2022 on the back of its key product, Pylarify — the PSMA PET imaging agent of choice. Strong quarterly results led the company to estimate its revenue and adjusted earnings to be $1.140 billion - $1.160 billion and $4.95 - $5.10 per share, respectively, for 2023. The guidance implies revenue growth of 30% and earnings growth of 19.1% at the mid-point of the guided ranges.
The Zacks Consensus Estimate for its current fiscal year (fiscal 2023) earnings is $4.79, implying a year-over-year improvement of 13.5%. The FY24 estimates suggest a further 11.1% bottom-line growth. Estimates for FY23 and FY24 earnings improved 12.7% and 14.7%, respectively, in the past 30 days.
The expected year-over-year revenue uptick for FY23 is 24.3%, while that for FY24 is 9.7%.
Lantheus beat earnings estimates in all the past four quarters, with the average surprise being 50.00%.
Lantheus Holdings, Inc. Price
Lantheus Holdings, Inc. price | Lantheus Holdings, Inc. Quote
Omeros
It is a clinical-stage biopharmaceutical company committed to discovering, developing and commercializing products focused on inflammation and disorders of the central nervous system. Omeros has four ongoing PharmacoSurgery(TM) clinical development programs, and its lead product candidate, OMS103HP, is being evaluated in phase III clinical studies for use during arthroscopic surgery to improve postoperative joint function and reduce postoperative pain.
The Zacks Consensus Estimate for its current fiscal year (fiscal 2023) loss is $2.31, implying a year-over-year improvement of 16.6%. The FY24 estimates suggest a further 25.3% bottom-line improvement. Estimates for FY23 and FY24 loss have widened in the past 30 days.
Omeros Corporation Price
Omeros Corporation price | Omeros Corporation Quote
Hyperfine
Hyperfine is a groundbreaking medical device company, which created Swoop, the first FDA-cleared portable MRI system. The company received multiple FDA clearances and international approvals in the past few months for AI-powered software upgrades to Swoop. It installed 35 commercial systems for full-year 2022. Hyperfine expects full-year revenues for 2023 to be $10 to $14 million.
The Zacks Consensus Estimate for its current fiscal year (fiscal 2023) loss is 67 cents, implying a year-over-year improvement of 35.6%. Estimates for FY23 earnings improved 30% in the past 30 days.
The expected year-over-year revenue uptick for FY23 is 68.8%.
Hyperfine delivered a four-quarter average earnings surprise of 25.46%.
Hyperfine, Inc. Price
Hyperfine, Inc. price | Hyperfine, Inc. Quote