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Here's Why You Should Invest in Fresenius Medical Right Now
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Fresenius Medical Care (FMS - Free Report) is one of the top-performing stocks in the MedTech space.
In the past year, the company’s shares have rallied 21.8% compared with the industry’s return of 11.3%.
In the past 60 days, the Zacks Consensus Estimate for earnings per share rose 14.8% to 70 cents. The company has a Zacks Rank #2 (Buy), which indicates the possibility of outperformance in the near term.
The stock has a VGM Style Score of A, which buoys optimism. Here V stands for Value, G for Growth and M for Momentum. Notably, the VGM Score is a comprehensive tool that helps investors screen winning stocks from the broader sectors. Further, the score highlights the determining elements in a stock that can drive it higher. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, outperform most stocks.
Let’s find out whether the recent positive trend can sustain the stock’s impressive performance in the long run.
What Makes It an Attractive Pick?
Strategic Acquisitions
Acquisitions have been a key catalyst for the company. In order to boost its long-term strategy or the ‘Growth-Strategy 2020’, Fresenius Medical signed an agreement to acquire all outstanding shares of NxStage Medical for $30 per share. The company expects the acquisition to be accretive to earnings within three years from the closure of the deal. It is also expected to provide annual pre-tax cost savings of $80 million to $100 million over the next three to five years.
Geographical Revenues
In fourth quarter 2017, the company witnessed a surge in geographical revenues, which fortified its global footprint. North America revenues rose 8% at constant currency (cc) on a year-over-year basis and accounted for 71.4% of total revenues. EMEA revenues improved 6% on a year-over-year basis at cc.
Revenues from Asia Pacific grew 12% at cc on a year-over-year basis, while the same in the Latin America region grew 16% at cc on a year-over-year basis.
Strong Guidance
For 2018, Fresenius Medical projects revenue growth of 8% at cc. Net income attributable to shareholders is likely to increase around 13-15%.
Other Key Picks
A few other top-ranked stocks in the broader medical space are, BIOHAVEN PHARM (BHVN - Free Report) , Bio-Rad Laboratories, Inc. (BIO - Free Report) and Envision Healthcare Corporation . While BIOHAVEN and Bio-Rad sport a Zacks Rank #1, Envision carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
BIOHAVEN has an expected growth rate of 50% for the current quarter and a growth rate of 42.1% for the next quarter.
Bio-Rad has an expected long-term growth rate of 20% and that for the current year is 42.9%.
Centene has an expected long-term growth rate of 13% and that for the next quarter is 10.6%.
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Image: Bigstock
Here's Why You Should Invest in Fresenius Medical Right Now
Fresenius Medical Care (FMS - Free Report) is one of the top-performing stocks in the MedTech space.
In the past year, the company’s shares have rallied 21.8% compared with the industry’s return of 11.3%.
In the past 60 days, the Zacks Consensus Estimate for earnings per share rose 14.8% to 70 cents. The company has a Zacks Rank #2 (Buy), which indicates the possibility of outperformance in the near term.
The stock has a VGM Style Score of A, which buoys optimism. Here V stands for Value, G for Growth and M for Momentum. Notably, the VGM Score is a comprehensive tool that helps investors screen winning stocks from the broader sectors. Further, the score highlights the determining elements in a stock that can drive it higher. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, outperform most stocks.
Fresenius Medical Care Price and Consensus
Fresenius Medical Care Price and Consensus | Fresenius Medical Care Quote
Let’s find out whether the recent positive trend can sustain the stock’s impressive performance in the long run.
What Makes It an Attractive Pick?
Strategic Acquisitions
Acquisitions have been a key catalyst for the company. In order to boost its long-term strategy or the ‘Growth-Strategy 2020’, Fresenius Medical signed an agreement to acquire all outstanding shares of NxStage Medical for $30 per share. The company expects the acquisition to be accretive to earnings within three years from the closure of the deal. It is also expected to provide annual pre-tax cost savings of $80 million to $100 million over the next three to five years.
Geographical Revenues
In fourth quarter 2017, the company witnessed a surge in geographical revenues, which fortified its global footprint. North America revenues rose 8% at constant currency (cc) on a year-over-year basis and accounted for 71.4% of total revenues. EMEA revenues improved 6% on a year-over-year basis at cc.
Revenues from Asia Pacific grew 12% at cc on a year-over-year basis, while the same in the Latin America region grew 16% at cc on a year-over-year basis.
Strong Guidance
For 2018, Fresenius Medical projects revenue growth of 8% at cc. Net income attributable to shareholders is likely to increase around 13-15%.
Other Key Picks
A few other top-ranked stocks in the broader medical space are, BIOHAVEN PHARM (BHVN - Free Report) , Bio-Rad Laboratories, Inc. (BIO - Free Report) and Envision Healthcare Corporation . While BIOHAVEN and Bio-Rad sport a Zacks Rank #1, Envision carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
BIOHAVEN has an expected growth rate of 50% for the current quarter and a growth rate of 42.1% for the next quarter.
Bio-Rad has an expected long-term growth rate of 20% and that for the current year is 42.9%.
Centene has an expected long-term growth rate of 13% and that for the next quarter is 10.6%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>