Share price of Batesville, IN-based Hill-Rom Holdings, Inc. (HRC - Analyst Report) reached a new 52-week high of $60.92 on Sep 22, eventually closing a tad lower at $60.84. The company gained 26.59% year to date, much better than the S&P 500’s gain of 6.52% over the same period. It has added roughly 6.09% over the past one year. Average volume of shares traded over the last three months was approximately 541.89K.
Meanwhile, we note that Hill-Rom Holdings holds a Zacks Rank #2 (Buy). The stock has a market cap of $3.98 billion.
The company has an impressive long-term expected earnings growth rate of 8.10%, higher than industry average of 5%.
The company has a discounted PEG ratio of 1.21 compared to the industry’s PEG of 2.03. It has also recorded a Price/Sales (P/S) ratio of 1.48, lower than the industry’s 3.89.
Accordingly, the company holds an impressive Value Style Score of B. Our Value Style Score highlights all the vital metrics to focus on value stocks offering high yields. Our research shows that stocks with a Value Style Score of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 offer the best investment opportunities in the value investing space.
Apart from that, estimate revision trend for the company is praiseworthy. In the past 60 days, three estimates have gone up with no downward revision for the current quarter. Estimates have also improved from a loss of 1 cent a share to a profit of 1 cent in the past 60 days.
The company’s current year figures are promising, with 6 estimates moving higher over the past two months, compared to no downward revision. The magnitude of estimate revision has also been encouraging over the same time period, increasing from a loss of 1 cent per share to earnings of 6 cents over the last 60 days.
We note that in the third quarter, Hill-Rom posted earnings of 81 cents per share, beating the Zacks Consensus Estimate of 76 cents by 6.58%.
Other Growth drivers:
Hill-Rom continues to grow strongly on its strategy of product expansion and diversification. Recently, the company launched VisiVest Airway Clearance System, a connected therapeutic solution for patients with chronic lung disease. In the beginning of 2016, Hill-Rom announced FDA clearance for its advanced operating table product for easy table adjustments during a surgery.
The company is also growing successfully through inorganic means. The acquisition of Welch Allyn last year has helped the company drive innovation in the medical device space and creates patient care solutions.
In the recently concluded third quarter, Hill-Rom recorded impressive top-line performance, primarily driven by robust performance in North America. The strong 38% year-over-year upside in revenues can be credited to the company’s diversified portfolio, focus on commercial and operational execution and pledge to manage costs and improve margins.
Zacks Rank & Key Picks
Hill-Rom currently has a Zacks Rank #2 (Buy). Some of the other favorably ranked stocks in the medical product sector are GW Pharmaceuticals plc (GWPH - Analyst Report) , NuVasive, Inc. (NUVA - Analyst Report) and Quidel Corp. (QDEL - Snapshot Report) .
GW Pharmaceuticals plc: This Zacks Rank #1 (Strong Buy) stock has gained 58.06% year to date, much better than the S&P 500’s gain of 6.52% over the same period. The estimate revision trend for the current year remains impressive with 3 estimates moving higher over the past two months, compared to no downward movement.
NuVasive, Inc: This stock has an impressive long-term earnings growth rate of 16.60%, as compared to the industry average of 5%. The stock recorded a gain of 25.78% YTD as compared to the S&P 500’s gain of 6.52% over the same time frame. Also the stock has Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Quidel Corp: This Zacks Rank #1 stock gained 13.33% in the past one year, higher than the S&P 500’s gain of 12.68%. The current year estimate revision trend has remained impressive with 3 estimates moving higher over the past two months, compared to no downward revision.
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