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Three Reasons to Retain Revvity (RVTY) Stock in Your Portfolio
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Revvity, Inc. (RVTY - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism led by its fourth-quarter 2023 and its focus on artificial intelligence (AI) also looks promising. Headwinds resulting from foreign exchange volatility and integration risks are major downsides.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 21.2% against the 6% rise of the industry and 27.7% growth of the S&P 500.
The renowned provider of health science solutions has a market capitalization of $12.97 billion. The company projects 8.3% growth for the next five years and expects to witness continued improvements in its business. Revvity surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an earnings surprise of 3.1%, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Focus on AI: We are upbeat about the use of AI by healthcare companies, which has been the latest and popular trend. Management at Revvity has introduced PKeye Workflow Monitor, which is a cloud-based platform allowing laboratory personnel to manage and monitor their Revvity instruments and workflows in real-time, remotely.
Revvity has also introduced its Signals Research Suite — a complete cloud-based solution — deployed on Amazon Web Services.
Product Portfolio: We are optimistic about Revvity’s portfolio, which delivers a comprehensive suite of scientific informatics and software solutions to aggregate data into actionable insights in an automated and scalable way. Last month, the company announced that its software and informatics division, Revvity Signals Software, was introducing the new Signals ChemDraw offering, the latest advancement in the Revvity Signals Software portfolio.
The same month, Revvity announced the introduction of a flexible end-to-end workflow solution for newborn research, enabling users to utilize different instruments, reagents and databases based on a lab’s needs.
Q4 Results: Per Revvity’s management, the company’s performance exceeded its expectations during the final months of 2023 despite navigating through continued industry headwinds. The company is currently leading with innovation to be a strategic scientific partner for its customers, which is expected to position it well to continue to perform at a high level.
Downsides
Foreign Exchange Volatility: Increasing exposure to international markets enhances the risk of foreign exchange volatility. The fluctuations in currency exchange rates can adversely impact the company’s international sales. Due to the sluggish European economy, future revenues and earnings are likely to be affected if the company does not hedge from exposure to currency fluctuations.
Integration Risks: Revvity continues to acquire a large number of companies. While this improves revenue opportunities, it also adds to integration risks. The frequent acquisitions can also negatively impact its balance sheet in the form of a high level of goodwill and intangible assets. Frequent acquisitions are also a distraction for management and impacts organic growth.
Estimate Trend
Revvity has been witnessing a positive estimate revision trend for 2024. Over the past 90 days, the Zacks Consensus Estimate for its earnings per share has moved 2.2% north to $4.65.
The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $647 million, suggesting a 4.1% decline from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 67.9% compared with the industry’s 23.4% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 45.4% compared with the industry’s 12.8% rise in the past year.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 49.5% compared with the industry’s 6% rise in the past year.
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Three Reasons to Retain Revvity (RVTY) Stock in Your Portfolio
Revvity, Inc. (RVTY - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism led by its fourth-quarter 2023 and its focus on artificial intelligence (AI) also looks promising. Headwinds resulting from foreign exchange volatility and integration risks are major downsides.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 21.2% against the 6% rise of the industry and 27.7% growth of the S&P 500.
The renowned provider of health science solutions has a market capitalization of $12.97 billion. The company projects 8.3% growth for the next five years and expects to witness continued improvements in its business. Revvity surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an earnings surprise of 3.1%, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Focus on AI: We are upbeat about the use of AI by healthcare companies, which has been the latest and popular trend. Management at Revvity has introduced PKeye Workflow Monitor, which is a cloud-based platform allowing laboratory personnel to manage and monitor their Revvity instruments and workflows in real-time, remotely.
Revvity has also introduced its Signals Research Suite — a complete cloud-based solution — deployed on Amazon Web Services.
Product Portfolio: We are optimistic about Revvity’s portfolio, which delivers a comprehensive suite of scientific informatics and software solutions to aggregate data into actionable insights in an automated and scalable way. Last month, the company announced that its software and informatics division, Revvity Signals Software, was introducing the new Signals ChemDraw offering, the latest advancement in the Revvity Signals Software portfolio.
The same month, Revvity announced the introduction of a flexible end-to-end workflow solution for newborn research, enabling users to utilize different instruments, reagents and databases based on a lab’s needs.
Q4 Results: Per Revvity’s management, the company’s performance exceeded its expectations during the final months of 2023 despite navigating through continued industry headwinds. The company is currently leading with innovation to be a strategic scientific partner for its customers, which is expected to position it well to continue to perform at a high level.
Downsides
Foreign Exchange Volatility: Increasing exposure to international markets enhances the risk of foreign exchange volatility. The fluctuations in currency exchange rates can adversely impact the company’s international sales. Due to the sluggish European economy, future revenues and earnings are likely to be affected if the company does not hedge from exposure to currency fluctuations.
Integration Risks: Revvity continues to acquire a large number of companies. While this improves revenue opportunities, it also adds to integration risks. The frequent acquisitions can also negatively impact its balance sheet in the form of a high level of goodwill and intangible assets. Frequent acquisitions are also a distraction for management and impacts organic growth.
Estimate Trend
Revvity has been witnessing a positive estimate revision trend for 2024. Over the past 90 days, the Zacks Consensus Estimate for its earnings per share has moved 2.2% north to $4.65.
The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $647 million, suggesting a 4.1% decline from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 67.9% compared with the industry’s 23.4% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 45.4% compared with the industry’s 12.8% rise in the past year.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have rallied 49.5% compared with the industry’s 6% rise in the past year.