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3 Reasons to Retain Inogen (INGN) Stock in Your Portfolio
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Inogen, Inc. (INGN - Free Report) is well-poised for growth in the coming quarters, courtesy of its high prospects in the portable oxygen concentrator (POC) space. The optimism led by solid second-quarter 2023 and a strong product portfolio also looks promising. However, issues like stiff competition and macroeconomic concerns are major downsides.
Over the past year, the Zacks Rank #3 (Hold) stock has lost 77.5% against the 1.8% rise of the industry and 19.7% growth of the S&P 500.
The renowned provider of POCs has a market capitalization of $111.1 million. The company projects 7.2% growth for 2024 and expects to witness continued improvements in its business. Inogen surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 28.4%, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
High Prospects in the POC Space: We are optimistic about the POCs’ superiority over conventional oxygen therapy (known as the delivery model). Inogen primarily develops, manufactures and markets innovative POCs to deliver supplemental long-term oxygen therapy (LTOT) to patients suffering from chronic respiratory conditions. Inogen’s proprietary Inogen One and Inogen Rove systems concentrate the air around the patient to offer a source of supplemental oxygen anytime, anywhere, with a battery that can be plugged into an outlet.
Product Portfolio: We are optimistic about Inogen’s expanding product portfolio. The company completed the acquisition of Physio-Assist SAS in September. Following the close of the transaction, it owns Physio-Assist and will now market the Simeox device outside of the United States.
Inogen launched the Rove 6, its latest POC, in December 2022. It has also received the FDA’s 510(k) clearance for the Rove 4 that will be launched in 2023.
Strong Q2 Results: Inogen’s robust year-over-year uptick in overall, as well as rental and domestic business-to-business sales in second-quarter 2023, buoy optimism.
Downsides
Stiff Competition: The LTOT market is a highly competitive industry. Inogen competes with several manufacturers and distributors of POC and providers of other LTOT solutions, such as home delivery of oxygen tanks or cylinders. Given the relatively straightforward regulatory path in the oxygen therapy device manufacturing market, Inogen expects that the industry will become increasingly competitive in the future.
Macroeconomic Concerns: Public health outbreaks, epidemics and pandemics of contagious or infectious diseases, such as COVID-19, may significantly disrupt Inogen’s business. Business disruptions could include temporary closures of Inogen’s facilities or the facilities of its contractors, suppliers and other partners. Inogen’s business could be adversely affected by general conditions in the global economy and the global financial markets.
Estimate Trend
Inogen has been witnessing a positive estimate revision trend for 2023. Over the past 90 days, the Zacks Consensus Estimate for its loss per share has narrowed from $2.41 to $2.35.
The Zacks Consensus Estimate for third-quarter 2023 revenues is pegged at $80.9 million, suggesting a 23.3% decline from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , McKesson Corporation (MCK - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.7%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita has gained 2.6% against the industry’s 4.9% decline over the past year.
McKesson, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average of 8.1%.
McKesson has gained 28.2% compared with the industry’s 23.3% rise over the past year.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Integer Holdings has gained 54.6% compared with the industry’s 1.8% rise over the past year.
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3 Reasons to Retain Inogen (INGN) Stock in Your Portfolio
Inogen, Inc. (INGN - Free Report) is well-poised for growth in the coming quarters, courtesy of its high prospects in the portable oxygen concentrator (POC) space. The optimism led by solid second-quarter 2023 and a strong product portfolio also looks promising. However, issues like stiff competition and macroeconomic concerns are major downsides.
Over the past year, the Zacks Rank #3 (Hold) stock has lost 77.5% against the 1.8% rise of the industry and 19.7% growth of the S&P 500.
The renowned provider of POCs has a market capitalization of $111.1 million. The company projects 7.2% growth for 2024 and expects to witness continued improvements in its business. Inogen surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 28.4%, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
High Prospects in the POC Space: We are optimistic about the POCs’ superiority over conventional oxygen therapy (known as the delivery model). Inogen primarily develops, manufactures and markets innovative POCs to deliver supplemental long-term oxygen therapy (LTOT) to patients suffering from chronic respiratory conditions. Inogen’s proprietary Inogen One and Inogen Rove systems concentrate the air around the patient to offer a source of supplemental oxygen anytime, anywhere, with a battery that can be plugged into an outlet.
Product Portfolio: We are optimistic about Inogen’s expanding product portfolio. The company completed the acquisition of Physio-Assist SAS in September. Following the close of the transaction, it owns Physio-Assist and will now market the Simeox device outside of the United States.
Inogen launched the Rove 6, its latest POC, in December 2022. It has also received the FDA’s 510(k) clearance for the Rove 4 that will be launched in 2023.
Strong Q2 Results: Inogen’s robust year-over-year uptick in overall, as well as rental and domestic business-to-business sales in second-quarter 2023, buoy optimism.
Downsides
Stiff Competition: The LTOT market is a highly competitive industry. Inogen competes with several manufacturers and distributors of POC and providers of other LTOT solutions, such as home delivery of oxygen tanks or cylinders. Given the relatively straightforward regulatory path in the oxygen therapy device manufacturing market, Inogen expects that the industry will become increasingly competitive in the future.
Macroeconomic Concerns: Public health outbreaks, epidemics and pandemics of contagious or infectious diseases, such as COVID-19, may significantly disrupt Inogen’s business. Business disruptions could include temporary closures of Inogen’s facilities or the facilities of its contractors, suppliers and other partners. Inogen’s business could be adversely affected by general conditions in the global economy and the global financial markets.
Estimate Trend
Inogen has been witnessing a positive estimate revision trend for 2023. Over the past 90 days, the Zacks Consensus Estimate for its loss per share has narrowed from $2.41 to $2.35.
The Zacks Consensus Estimate for third-quarter 2023 revenues is pegged at $80.9 million, suggesting a 23.3% decline from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , McKesson Corporation (MCK - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 12.7%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average surprise of 21.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita has gained 2.6% against the industry’s 4.9% decline over the past year.
McKesson, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.7%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed once, with an average of 8.1%.
McKesson has gained 28.2% compared with the industry’s 23.3% rise over the past year.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.1%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 8.4%.
Integer Holdings has gained 54.6% compared with the industry’s 1.8% rise over the past year.