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Hill-Rom (HRC) Stock Down With Dull Patient Support Systems

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On Aug 25, we issued an updated research report on Hill Rom Holdings, Inc. (HRC - Free Report) . The stock currently has a Zacks Rank #4 (Sell).

Hill-Rom exited the last- reported third quarter of 2017 on a mixed note with earnings ahead of estimates but revenues missing the same. The company disappointed with declining Patient Support Systems revenue due to the impact of the WatchChild and Architectural Products divestitures plus lower rental revenues.

Hill-Rom has underperformed the broader industry over the last three months. The stock has till now lost 2.9% versus the industry’s 0.1% gain. Foreign exchange and stiff competition remain headwinds. The company’s lowered full-year revenue and earnings guidance is indicative of this persistent sluggish trend going ahead.

On a positive note, Hill-Rom saw a solid year-over-year increase in revenues on strong international growth. Hill-Rom currently aims to gain traction in the untapped international market on successful execution. The company is focusing on product innovation through research and development. Also, its product launches slated for the fourth quarter are pumping up investors’ confidence. The commercial launch of Centrella Med-Surg platform in this regard is worth a mention.

Additionally, Hill-Rom’s merger and acquisition pipeline remains robust. The company aggressively pursues acquisitions to accelerate growth in five key clinical focus areas namely, advancing patient mobility, wound care and prevention, surgical, safety and efficiency, clinical workflow solutions and respiratory help.

Key Picks                                 

A few better-ranked medical stocks are IDEXX Laboratories, Inc. (IDXX - Free Report) , Lantheus Holdings, Inc. (LNTH - Free Report) and Edwards Lifesciences Corporation (EW - Free Report) . Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Lantheus Holdings and IDEXX Laboratories carry a Zacks Rank #2 (Buy). You cansee the complete list of today’s Zacks #1 Rank stocks here.

IDEXX Laboratories has a long-term expected earnings growth rate of 19.8%. The stock has gained around 6.2% over the last six months.

Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has surged 34.9% over the last six months.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 19.1% over the last six months.

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