Philips ( PHG Quick Quote PHG - Free Report) is having a terrific 2023, with shares up 42.9% year to date, driven by its innovative portfolio of medical devices. These devices are helping healthcare professionals provide care to their patients efficiently. The company recently expanded its portfolio by unveiling the Zenition 30, an Image Guided Therapy Mobile C-arm System 3000. Other C-arm systems in Philips’ Zenition series include the Zenition 50, Zenition 70 and the recently launched Zenition 10. Mobile C-arms are special X-ray machines that doctors can bring into the operating room. They use these machines during various medical procedures, such as bone surgeries, trauma treatments, spine surgeries and pain management. These machines help doctors see live X-ray images to guide them during the procedures. Beyond swift setup and protocol selection, the Zenition 30 empowers surgeons with enhanced control over C-arm positioning throughout surgical procedures. The Zenition 30 empowers surgeons by granting them increased control, enabling more autonomy and self-reliance. This reduction in reliance on support staff addresses the staffing challenges commonly encountered by hospitals. Additionally, its features enhance workflow and exceptional image quality, enabling surgeons to provide top-notch care to more patients.
Zenition 30's usability has received positive feedback from clinicians worldwide in simulated environments, with 95% expressing confidence in its enhanced surgeon control and 84% appreciating the personalized image quality profiles, potentially reducing the need for additional images during procedures.
Furthermore, Philips has prioritized sustainability by extending the Zenition 30's product lifetime by 25% and offering a refurbishment program, aligning with their commitment to environmentally responsible practices. Expanding Portfolio & Partner Base Aids Growth
Philips shares have outperformed the
Medical sector and have declined 4.9% year to date. The outperformance can be attributed to the company’s expanding portfolio and strong partner base. Philips has broadened its product offerings by launching innovative diagnostic systems and AI-powered transformative workflow solutions. Philips has introduced cloud-based HealthSuite Imaging PACS on Amazon Web Services. This cloud-based enterprise imaging solution, which includes advanced AI-enabled applications, offers enhanced image access speed, reliability and data orchestration for clinicians across the imaging workflow. In collaboration with JD.com, Philips introduced its premium 7 Series Shaver in China, making a remarkable debut as the top-ranked shaver on this prominent online retail platform. Additionally, Philips' DiamondClean 9000 premium electric toothbrush became the best-selling high-end oral healthcare product on Alibaba. Expanding the hospital partner base has been a key catalyst for Philips. During second-quarter 2023, it signed a 10-year agreement with the University of California Irvine Health to provide enterprise monitoring as a service combined with informatics. In June, Philips and Masimo ( MASI Quick Quote MASI - Free Report) received FDA clearance that activated the latter’s SedLine Brain Function Monitoring, Regional Oximetry, and CO2 measurements in Philips Patient Monitors – IntelliVue MX750 and MX850. Integrating Masimo solutions in Philips devices helps clinicians quickly assess and monitor blood saturation in the brain (cerebral oxygenation), anesthetic sedation and patient respiratory performance, all from the same monitor. Philips now expects to deliver mid-single-digit (up from low-single-digit) comparable sales growth driven by its strong portfolio and expanding partner base in 2023. It also expects to hit the upper end of the previously provided high-single-digit adjusted EBITA margin guidance. The Diagnosis & Treatment business is expected to witness high-single-digit growth, while the Connected Care segment is expected to witness a mid-single-digit growth rate in 2023. Personal Health is expected to grow low-single-digit. Philips still expects free cash flow between €700 million and €900 million for 2023. Zacks Rank & Other Stocks to Consider
Currently, PHG sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here. Intuitive Surgical ( ISRG Quick Quote ISRG - Free Report) and Option Care Health ( OPCH Quick Quote OPCH - Free Report) are a couple of top-ranked stocks that investors can consider in the broader sector. Shares of ISRG and OPCH have returned 14.5% and 15.6%, respectively, on a year-to-date basis. Long-term earnings growth rates for Intuitive Surgical and Option Care Health are pegged at 15.7% and 20.24%, respectively.