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Why You Should Retain IQVIA Holdings Stock in Your Portfolio Now

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While IQVIA Holdings Inc. (IQV - Free Report) benefits from its market leadership, data-driven innovation, and global expansion, it must navigate pricing pressure.

IQV has an expected long-term (three to five years) EPS growth rate of 9.6%. The company’s earnings for 2024 and 2025 are expected to grow 9% and 6.9%, respectively.

IQV’s Global Reach, Market Leadership in Healthcare Analytics

IQVIA operates in over 100 countries, giving it a vast global footprint. This extensive presence enables it to tap into emerging markets with growing healthcare needs and opportunities for clinical research. Its international reach allows revenue growth beyond developed markets, where drug approvals and research demand remain high.

IQVIA is a leading global provider of advanced analytics, technology solutions and contract research services in the healthcare sector. Its comprehensive offering of clinical development, data analytics, and commercialization services makes it indispensable to pharmaceutical companies, biotechnology firms and medical device manufacturers. This strong market position allows IQVIA to maintain stable revenue streams and build long-term client relationships.

IQVIA is known for its innovative use of technology and data analytics, particularly through its proprietary "IQVIA CORE" platform, which integrates data, advanced analytics and expert services. This platform allows healthcare organizations to accelerate drug development, optimize clinical trials and streamline commercial strategies. The company’s data-driven approach enhances its competitiveness and makes it a go-to partner for healthcare clients seeking to leverage big data.

Some Risks

Large pharmaceutical companies continue to apply pricing pressure on IQVIA’s operations. These clients, adopting a more cautious approach to their budgets, are increasingly engaged in difficult price negotiations. This budgetary conservatism is driven by various factors, including broader economic uncertainties and the need to optimize spending. As a result, IQVIA faces the challenge of balancing competitive pricing with steady profitability, as clients demand more cost-effective solutions without compromising the quality of services provided.

The company currently has no plan to pay cash dividends on common stock. Future dividend payments depend on factors such as financial condition, cash requirements and contractual restrictions. Investors seeking cash dividends should avoid buying IQVIA.

Zacks Rank and Stocks to Consider

IQV currently carries a Zacks Rank #3 (Hold).

Some other top-ranked stocks in the broader Zacks Business Services sector are Parsons (PSN - Free Report) and Qifu Technology (QFIN - Free Report) .

Parsons sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

PSN has a long-term earnings growth expectation of 18.6%. It delivered a trailing four-quarter earnings surprise of 17.5%, on average.

Qifu Technology sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 20.9%.

QFIN delivered a trailing four-quarter earnings surprise of 12.4%, on average.


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