Integra LifeSciences Holdings Corporation (IART - Free Report) has been gaining investor confidence on consistently positive results. In the past six months, the company’s share price has outperformed its industry. The stock has surged 33.3% against the industry’s 6.2% fall.
This leading developer, manufacturer and marketer of cost-effective surgical implants and medical instruments has a market cap of $5.86 billion. The company has an earnings growth rate of 13.90% for the next three to five years.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
The company’s estimate revision trend for the current year has been northbound. In the past 60 days, 10 analysts have revised their estimates upward while there was no movement in the opposite direction. Resultantly, earnings estimates rose around 3.4% to $2.41.
Let’s find out whether the recent positive trend is a sustainable one.
Global Prospects Impressive
In spite of facing foreign exchange fluctuations across its international business, Integra LifeSciences has been successfully seeing certain key developments on the overseas front. The company is looking forward to investment opportunities in the Asian market in order to grow business much faster than the United States and also across certain parts of its international businesses.
In line with this growth strategy, the company is preparing to launch several products in China and Japan. Turning to Europe, management feels encouraged about the growth potential of this region with Tissue Technologies business and CUSA Clarity product scheduled to be launched in Europe.
Strength in Regenerative Technologies
Integra LifeSciences’ Regenerative Technologies is the largest franchise under Orthopedics and Tissue Technologies. In the first quarter of 2018, the company registered mid-single digit’s growth in this franchise, primarily banking on strength in the PriMatrix product lines, which increased in double digits in both inpatient and outpatient settings.
Earlier, Integra LifeSciences introduced several new products having expanded the company’s portfolio of solutions in the United States hernia repair market and in the European breast reconstruction market. This should further spur growth in 2018.
Solid Growth at Codman Specialty Surgical (CSS) Segment
At the end of the first quarter, Integra LifeSciences noted that the performance in Codman Specialty Surgical segment exceeded its expectations. It has also successfully completed the transition of the Codman business in China where this business boasts its largest revenue base. Also, it has integrated sales territories associated with above 90% of the Codman revenue globally by the end of the first quarter. This apart, the company has opened a new campus in Mansfield, MA, which will be home to the conveying Codman teammates.
Integra LifeSciences experienced 2.5% organic growth in the Codman Specialty Surgical segment during first-quarter 2018. This can be attributed to the integration progress around the globe. This apart, with the recent addition of Codman's commercial resources, the company is well-poised to accelerate growth in Dural Repair during 2018.
Other Key Picks
Other top-ranked stocks in the broader medical space include Genomic Health (GHDX - Free Report) , Abiomed (ABMD - Free Report) and Stryker Corp. (SYK - Free Report) .
Genomic Health has an expected earnings growth rate of 187.5% for the current quarter. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Abiomed has a projected long-term earnings growth rate of 27% and a Zacks Rank of 1.
Stryker has a projected long-term earnings growth rate of 9.7%. The stock carries a Zacks Rank of 2.
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