The coronavirus crisis continues to rattle global markets. Adding to the angst, the WHO declared the disease to be a pandemic yesterday. Notably, the S&P 500 index fell 4.9% and Nasdaq slipped 4.7% on the day.
Last month, a
study by The Guardian estimated that the outbreak might cost the global economy more than $1 trillion, once the coronavirus wave is officially declared an pandemic. Meanwhile, key players across different industries of the United States are apprehending significant losses in the first quarter, given that the number of reported cases in the country has already surpassed 1,000.
Let’s take a look.
Slashed Expectations of MedTech Players
Most companies with a major presence in emerging markets as well as the EU are likely to suffer. The month-long closure of manufacturing units and distribution hubs in China has caused major supply chain disruptions. This is naturally taking a toll on companies’ revenue generation.
Given the backdrop, let’s take a look at some of the medical industry players whose first-quarter guidance cuts might dampen investors’ spirit further.
Boston Scientific Corporation ( BSX - Free Report) lowered its quarterly sales guidance for the first quarter. Notably, the Zacks Rank #3 (Hold) company now anticipates a negative impact of $10-$40 million. Management expects 6-7.5% impact on first-quarter revenues. In fact, owing to the crisis in China, the company expects a negative impact throughout the first half of 2020.
Over the past month, shares of the company have lost 19.7% compared with the
industry’s 14.1% decline. Ecolab Inc. ( ECL - Free Report) anticipates an unfavorable impact of 5 cents on adjusted EPS for first-quarter 2020.
Over the past month, this Zacks Rank #3 stock has declined 9.9% compared with the
industry’s 15.8% fall.
Next on our list is
The Cooper Companies, Inc. ( COO - Free Report) . The specialty medical device company recently declared that it expects a $15-million negative impact on revenues from the outbreak in second-quarter fiscal 2020. The stock carries a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Over the past month, the stock has slipped 8.2% compared with the
industry’s 13.4% decline.
Lastly, MedTech firm
CONMED Corporation ( CNMD - Free Report) recently issued a revenue warning for the first quarter. The Zacks Rank #3 company now expects revenue growth of 2-4% in the quarter, down from the prior guidance of 5-6%. Adjusted EPS is expected to grow in the mid-single digits, compared with the prior guidance of high single digit to low double-digit growth.
Shares of CONMED have plunged 24.5% compared with the industry’s 13.5% decline over the past month.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>