Back to top

Analyst Blog

Zacks Equity Research

Varian (VAR) in Just 100 List from JUST Capital and Forbes

MDSO HMSY VAR IDXX

Trades from $3

Leading manufacturer of medical devices and software for treating cancer and other medical conditions with radiation, Varian Medical Systems Inc. (VAR - Free Report) announced it was included in the inaugural JUST 100 List. Per the list, the company is the nation’s Most JUST Company in the Healthcare Equipment and Services industry. The list was prepared by independent nonprofit organization JUST Capital and global media player Forbes magazine.

The manufacturer of medical devices has gained 11.18% year to date compared with a 4.53% loss witnessed by the Zacks-categorized Medical Products market. We believe that the recognition will help Varian to maintain this momentum.     

The rankings for the JUST 100 List are based on criteria established by a survey conducted on attitude toward corporate behavior. The survey involves 50,000 people around the nation over the last 18 months. This list ranks U.S companies against their peers within 32 major industries. The companies are ranked on fair pay, equal opportunity employment, job creation, safety, compliance, and respect for employees. This selection of companies was made from the Russell 1000 Index.

We find growth prospects in Varian’s oncology business quite impressive. The company is addressing both tier 1 and mid-tier markets through its Edge, Truebeam and VitalBeam products. The company is also winning contracts, not only in the Americas but also in international markets, which is a huge positive.

We believe China and Africa present significant top-line growth opportunities in the near term. The company is opening new offices in Africa and the Middle East, which shows that it is aware of the growth opportunities in the region.
 

Moreover, Varian’s strong product pipeline is a key growth catalyst. The company believes that the Proton system has massive growth opportunities. Nevertheless, increasing local competition is the primary headwind.

Zacks Rank & Key Picks

Currently, Varian carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader medical space include HMS Holdings Corp. (HMSY - Free Report) , Medidata Solutions Inc. (MDSO - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) . Notably, HMS Holdings and Medidata Solutions carry a Zacks Rank #2 while IDEXX Laboratories sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

HMS Holdings has a long-term expected growth rate of 14.26%. Notably, the company has a solid one-year return of roughly 43.7%.

Medidata Solutions has a strong one-year return of roughly 23.4%. The stock represents a long-term expected growth rate of 22.33%.

IDEXX Laboratories represents a solid one-year return of almost 63.7%. The company has a long-term expected growth rate of almost 14.96%.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>