Integer Holdings Corporation (ITGR - Free Report) is currently one of the best-performing stocks in the Medical Instruments industry. In fact, its solid focus on portfolio management and operational excellence are commendable. Moving ahead, the company is likely to gain from the Cardio & Vascular, Neuromodulation and Non-Medical Electrochem markets.
Integer Holdings has a Zacks Rank #2 (Buy).
Impressive Share Price Performance
A glimpse at the company's price trend reveals that Integer Holdings has outperformed its industry in a year’s time. The stock has surged 77.8%, significantly higher than the industry’s 14.9% rally and the S&P 500 index's 6.2% gain.
Let us take a quick look at three important factors that make Integer Holdings a solid pick for now.
Factors at Play
Strong Q3 Results
Integer Holdings wrapped up the third quarter on a solid note, with earnings and revenues beating the respective Zacks Consensus Estimate. Also, the company continues to gain from its Cardio & Vascular product line. Third-quarter adjusted earnings came in at $1.06 per share, outpacing the consensus mark by 15.2%. The bottom-line also improved 16.5% on a year-over-year basis.
On a reported basis, revenues improved 6.9% year over year to $305.1 million and surpassed the Zacks Consensus Estimate of $292 million.
Integer Holdings have been witnessing an increase in profits since the last couple of quarters, courtesy of its consistent efforts to streamline operations. In the third quarter, the company generated gross profit of $91.9 million, up 3.1% year over year. Total operating income amounted to $41.5 million, up 15.7% year over year. Adjusted operating margin was 14.9%, up 30 bps year over year.
For 2018, the company expects revenues in the band of $1,195-$1,210 million, mirroring 6-7% growth from the previous year’s tally (on an adjusted basis).
Adjusted earnings are expected in the range of $3.55-$3.70 per share, indicating a 15-20% rise from the figure registered a year ago.
Which Way Are Estimates Treading?
The Zacks Consensus Estimate for third-quarter earnings is pegged at 92 cents, reflecting a year-over-year decrease of 4.2%. The same for revenues stands at $279.9 million, indicating 28.3% decline year over year.
For the full year, the Zacks Consensus Estimate for earnings is pegged at $3.66, reflecting growth of 30.3% from a year ago. The same for revenues stands at $1.30billion.
Integer Holdings Corporation Price and Consensus
Integer Holdings has a stable foothold in the cardiac, orthopedics, vascular and advanced surgical markets. Buoyed by solid prospects, the stock currently has a VGM Score of B. The VGM score (V stands for Value, G for Growth and M for Momentum) essentially highlights critical factors in a stock that have the potential to drive its price higher in the near term.
Our research shows that stocks, with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, are better picks than most.
Some other top-ranked stocks in the broader medical space are Abiomed, Inc. (ABMD - Free Report) , Masimo Corporation (MASI - Free Report) and DexCom, Inc. (DXCM - Free Report) .
Abiomed has a long-term expected earnings growth rate of 34.3%. The stock carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s long-term earnings growth rate is projected at 14.6%. The stock carries a Zacks Rank #2.
With a Zacks Rank #1, DexCom has an average four-quarter positive earnings surprise of 131.3%.
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