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GE Solidifies Presence in Molecular Imaging with DILON Deal

DHR GE MIC AOS

Trades from $3

General Electric Company (GE - Free Report) recently inked an agreement with DILON Diagnostics, under which the latter will become an exclusive distributor of General Electric's Discovery NM750b Molecular Breast Imaging system in North America.

Based in Newport News, VA, DILON Diagnostics is part of DILON Technologies, Inc. The company designs, manufactures and commercializes innovative medical imaging solutions globally. The DILON Molecular Imaging System features a high-resolution compact camera for imaging small body parts, such as the breast, thyroid, parathyroid and bone. This system has been primarily designed to perform the Molecular Breast Imaging (MBI/BSGI) procedure, in turn facilitating the effective management of critical cases.

On the other hand, General Electric Healthcare’s Discovery NM750b Molecular Breast Imaging system was designed to contribute to breast cancer care, with services including diagnosis and planning using intense treatment monitoring. The latest collaboration aims to fight breast cancer by offering customers a complete spectrum of BSGI/MBI solutions.

In a separate press release, General Electric announced a partnership with Transnet, a leading freight and logistics company based in South Africa. Per this deal, General Electric will create a digital solution to connect shippers and transport operators, and enable smooth movement of goods. The company will offer real-time, data-driven insights into the status of shipments to shippers and transport operators. This would help augment the company’s top line in the future.

General Electric has been actively pursuing massive restructuring initiatives in order to create a simpler and nimbler firm. From a classic conglomerate with diversified business interests in financial services, media, industrial and technology-based operations, the company is pruning its operating portfolio to focus on core manufacturing businesses with a digital edge.

We continue to be optimistic about the strategic acquisitions of this Zacks Rank #4 (Sell) stock. However, some better-ranked stocks in this industry include Macquarie Infrastructure Corporation (MIC - Free Report) , AO Smith Corp. (AOS - Free Report) and Danaher Corp. (DHR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Macquarie Infrastructure is currently trading at a forward P/E of 66.4x and has beaten estimates twice in the trailing four quarters for an average earnings surprise of 29.6%.

AO Smith has a long-term earnings growth expectation of 10.7% and is currently trading at a forward P/E of 25.9x.

Danaher has long-term earnings growth expectation of 11.8% and is currently trading at a forward P/E of 22.0x.

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