With more than 84.6% of the S&P 500 members (423 companies) having already reported their Q3 figures, our latest Earnings Outlook has displayed an improvement in the earnings trend so far. As the earnings season wraps up, we are confident about this quarter recording earnings growth after five consecutive quarters of decline for the S&P 500 index.
Total earnings for these 423 companies are up 3.6% year over year on 2.4% higher revenues, with 72.8% beating earnings estimates and 55.1% exceeding top-line expectations. As per the report, Medical is one of the 12 broader sectors among the 16 Zacks sectors which have reported earnings growth so far. The sector has witnessed 6.4% earnings growth on the back of 7.4% higher revenues in the third quarter.
What’s in Store for the Med-Product Space?
Medical product, a niche area under the medical device subcategory within the broader Medical sector, holds considerable promise owing to the temporary two-year suspension of the controversial 2.3% medical device excise tax. In addition, the recent change in consumer demand and market dynamics led to a transformation in the entire healthcare system. This is evident from the growing prevalence of minimally invasive surgeries, rising demand for liquid biopsy tests, use of IT for ensuring quick and improved patient care, and the shift of the payment system to a value-based model, among others.
Let’s take a look at the major Medical Product stocks slated to release their third-quarter results on Nov 8:
NantHealth, Inc. (NH - Free Report) : Based in Culver City, CA, NantHealth is a next-generation, evidence-based, personalized healthcare company enabling improved patient outcomes and more effective treatment decisions for critical illnesses.
We cannot conclusively predict an earnings beat for NantHealth as it currently carries a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. As per our model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Globus Medical, Inc. (GMED - Free Report) : Headquartered in Pennsylvania, Globus Medical is a leading musculoskeletal implant manufacturer and is driving significant technological advancement across a complete suite of spinal products. Globus’ only focus on advancing spinal surgery has made it the fastest growing company in the history of orthopedics.
The company currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. Please note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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