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Here's Why You Should Invest in Haemonetics (HAE) Right Now
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Haemonetics Corporation (HAE - Free Report) has been gaining from the impressive performance of the Plasma and Hospital business, with continued strength in the Hemostasis Management product line. Robust contributions from the Vascular Closure business also seem promising.
In the past year, the company’s shares have outperformed its industry. The stock has gained 36.6% against the industry’s 38.8% fall. Also, the company has outperformed the S&P 500’s 9.9% decline.
This renowned global provider of blood management solutions to customers encompassing blood and plasma collectors and hospitals has a market cap of $4.18 billion. The company has an earnings growth rate of 10% for the next five years.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors at the moment.
What Makes the Stock an Attractive Pick?
Potential Upsides of Plasma Franchise: Haemonetics has been witnessing strong growth in the Plasma franchise for quite some time. In the global plasma market, Haemonetics holds 80% share approximately. Haemonetics is witnessing plasma market growth above historic rates, driven by an industry striving to double collections by 2025 and the rising demand for plasma-based medicines. The company continued to benefit from the NexSys device and NexLynk donor management software (DMS) backed by increased customer adoptions.
Plasma revenues increased 42% in the third quarter. North American disposables represent 85% of total plasma revenues and increased 46% in the quarter, driven by strong growth in volume and price due to technology upgrades. The company’s fully-integrated bidirectional NexSys platform is helping all long-term customers achieve effective and efficient plasma center operations while reducing costs.
Huge Potential of Hemostasis Management Franchise: Under the Hospital business, Hemostasis Management saw strong growth over the past few quarters.
Hemostasis Management revenues grew 7% in the quarter. Growth in North America, the company’s largest market, was 16% in the quarter, driven by strong adoption and utilization of TEG disposables.
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The recently-acquired Vascular Closure business continues to excel, with revenues growing 33% in the fiscal third quarter. Growth in the third quarter can be attributed to the new electrophysiology account within the top 600 hospitals. During the third quarter, the company received CE mark certification for Vascade and Vascade MVP, which helped unlock additional attractive market opportunities outside the United States. During the third-quarter earnings update, the company noted that as it progresses with commercialization in Europe, it plans to use a direct sales model and leverage its existing back-office infrastructure. This is one of many investments Haemonetics are making to solidify its leadership position in Vascular Closure and accelerate revenue growth.
Recovery Across Businesses: The fiscal third quarter saw the encouraging performance of Haemonetics’ businesses. The Hospital business’ revenues grew 11.3% (up 14.4% on an organic basis) in the reported quarter, despite continued macroeconomic challenges, including hospital staffing shortages, budgetary constraints and COVID-related challenges in China. The company’s revenues and market share rose significantly. Under the Hospital segment, revenue growth in the Hemostasis Management and Vascular Closure product lines was 4.2% and 32.6% on a year-over-year basis, respectively. Within Vascular Closure, growth in the third quarter was driven by converting new electrophysiology accounts from the top 600 hospitals, further increasing its penetration and market share in the United States. Plasma revenues increased 42% in the third quarter, driven by strong growth in collection volume and price due to the technology upgrades.
Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for Haemonetics’ 2024 earnings has been constant at $2.94.
The Zacks Consensus Estimate for 2024 revenues is pegged at $1.19 billion, suggesting a 3.5% rise from the year-ago reported number.
Key Picks
Some other top-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Avanos Medical, Inc. (AVNS - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
Hologic has gained 3.7% against the industry’s 16.8% fall in the past year.
Henry Schein, carrying a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 6.2% compared with the industry’s 5% decline in the past year.
Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.
Avanos has lost 11.6% compared with the industry’s 16.8% decline in the past year.
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Here's Why You Should Invest in Haemonetics (HAE) Right Now
Haemonetics Corporation (HAE - Free Report) has been gaining from the impressive performance of the Plasma and Hospital business, with continued strength in the Hemostasis Management product line. Robust contributions from the Vascular Closure business also seem promising.
In the past year, the company’s shares have outperformed its industry. The stock has gained 36.6% against the industry’s 38.8% fall. Also, the company has outperformed the S&P 500’s 9.9% decline.
This renowned global provider of blood management solutions to customers encompassing blood and plasma collectors and hospitals has a market cap of $4.18 billion. The company has an earnings growth rate of 10% for the next five years.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors at the moment.
What Makes the Stock an Attractive Pick?
Potential Upsides of Plasma Franchise: Haemonetics has been witnessing strong growth in the Plasma franchise for quite some time. In the global plasma market, Haemonetics holds 80% share approximately. Haemonetics is witnessing plasma market growth above historic rates, driven by an industry striving to double collections by 2025 and the rising demand for plasma-based medicines. The company continued to benefit from the NexSys device and NexLynk donor management software (DMS) backed by increased customer adoptions.
Plasma revenues increased 42% in the third quarter. North American disposables represent 85% of total plasma revenues and increased 46% in the quarter, driven by strong growth in volume and price due to technology upgrades. The company’s fully-integrated bidirectional NexSys platform is helping all long-term customers achieve effective and efficient plasma center operations while reducing costs.
Huge Potential of Hemostasis Management Franchise: Under the Hospital business, Hemostasis Management saw strong growth over the past few quarters.
Hemostasis Management revenues grew 7% in the quarter. Growth in North America, the company’s largest market, was 16% in the quarter, driven by strong adoption and utilization of TEG disposables.
The recently-acquired Vascular Closure business continues to excel, with revenues growing 33% in the fiscal third quarter. Growth in the third quarter can be attributed to the new electrophysiology account within the top 600 hospitals. During the third quarter, the company received CE mark certification for Vascade and Vascade MVP, which helped unlock additional attractive market opportunities outside the United States. During the third-quarter earnings update, the company noted that as it progresses with commercialization in Europe, it plans to use a direct sales model and leverage its existing back-office infrastructure. This is one of many investments Haemonetics are making to solidify its leadership position in Vascular Closure and accelerate revenue growth.
Recovery Across Businesses: The fiscal third quarter saw the encouraging performance of Haemonetics’ businesses. The Hospital business’ revenues grew 11.3% (up 14.4% on an organic basis) in the reported quarter, despite continued macroeconomic challenges, including hospital staffing shortages, budgetary constraints and COVID-related challenges in China. The company’s revenues and market share rose significantly. Under the Hospital segment, revenue growth in the Hemostasis Management and Vascular Closure product lines was 4.2% and 32.6% on a year-over-year basis, respectively. Within Vascular Closure, growth in the third quarter was driven by converting new electrophysiology accounts from the top 600 hospitals, further increasing its penetration and market share in the United States. Plasma revenues increased 42% in the third quarter, driven by strong growth in collection volume and price due to the technology upgrades.
Estimate Trend
In the past 30 days, the Zacks Consensus Estimate for Haemonetics’ 2024 earnings has been constant at $2.94.
The Zacks Consensus Estimate for 2024 revenues is pegged at $1.19 billion, suggesting a 3.5% rise from the year-ago reported number.
Key Picks
Some other top-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Avanos Medical, Inc. (AVNS - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Hologic has gained 3.7% against the industry’s 16.8% fall in the past year.
Henry Schein, carrying a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 6.2% compared with the industry’s 5% decline in the past year.
Avanos, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1.8% for 2023. AVNS’ earnings surpassed estimates in all the trailing four quarters, the average beat being 11%.
Avanos has lost 11.6% compared with the industry’s 16.8% decline in the past year.