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Buy 5 Top Health Care Stocks Ahead of Q1 Earnings Results
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First-quarter 2020 earnings results have started with disappointment reflecting the significant dent in corporate profits left by the outbreak of the coronavirus. Global economic activities came almost to a standstill in March as either partial or full lockdowns were imposed to curb the spread of the deadly virus.
However, one sector that witnessed heightening activities despite economic disaster is health care. Since coronavirus is an unprecedented health hazard, which is leaving devastating effects on the global economy, governments across the world are encouraging health care firms to speed up research and development activities for a vaccine or line of treatment.
First Quarter at a Glance
Several disappointing numbers including job data, industrial production, retail sales, manufacturing activities, home building and consumer confidence, revealed how badly the U.S. economy was hurt in the first quarter due to lockdowns, both domestic and international.
While the economy is witnessing a bloodbath, medical services is an obvious exception. The whole world has pinned hopes on pharmaceutical and biotech companies to create drugs and vaccines to help combat COVID-19. The coronavirus pandemic has almost crippled the global economy.
Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to soar after earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of our five picks in the last quarter.
Eli Lilly and Co. (LLY - Free Report) discovers, develops, manufactures, and markets pharmaceutical products worldwide. It offers endocrinology products for diabetes; osteoporosis in postmenopausal women and men and human growth hormone deficiency and paediatric growth conditions. The company has an Earnings ESP of +1.67%.
Eli Lilly has an expected earnings growth rate of 12.1% for the current year. It has a trailing four-quarter positive earnings surprise of 5.2%, on average. The company is set to release earnings results on Apr 23, before the opening bell.
DexCom Inc. (DXCM - Free Report) is a medical device company which focuses on the design, development, and commercialization of continuous glucose monitoring systems in the United States and internationally. It offers its systems to people with diabetes and healthcare service providers. The company has an Earnings ESP of +143.90%.
DexCom has an expected earnings growth rate of 19% for the current year. It has a trailing four-quarter positive earnings surprise of 128.3%, on average. The company is set to release earnings results on Apr 28, after the closing bell.
ViewRay Inc. designs, manufactures and markets radiation therapy systems. It offers MRIdian, a magnetic resonance image-guided radiation therapy system to image and treat cancer patients. The company has an Earnings ESP of +10%. ViewRay has an expected earnings growth rate of 29.7% for the current year. The company is set to release earnings results on Apr 30, after the closing bell.
Chemed Corp. (CHE - Free Report) provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers in the United States. It operates through two segments, VITAS and Roto-Rooter. The company has an Earnings ESP of +1.78%.
Chemed has an expected earnings growth rate of 17.1% for the current year. It has a trailing four-quarter positive earnings surprise of 3.4%, on average. The company is set to release earnings results on May 4, after the closing bell.
Sage Therapeutics Inc. (SAGE - Free Report) is a biopharmaceutical company developing and commercializing medicines to treat life-threatening central nervous system disorders. The company has an Earnings ESP of +1.67%.
Sage Therapeutics has an expected earnings growth rate of 14.4% for the current year. The Zacks Consensus Estimate for the current year earnings has improved 11.6% over the last 30 days. It has a trailing four-quarter positive earnings surprise of 0.8%, on average. The company is set to release earnings results on May 7, after the closing bell.
Today's Best Stocks from Zacks
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This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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Buy 5 Top Health Care Stocks Ahead of Q1 Earnings Results
First-quarter 2020 earnings results have started with disappointment reflecting the significant dent in corporate profits left by the outbreak of the coronavirus. Global economic activities came almost to a standstill in March as either partial or full lockdowns were imposed to curb the spread of the deadly virus.
However, one sector that witnessed heightening activities despite economic disaster is health care. Since coronavirus is an unprecedented health hazard, which is leaving devastating effects on the global economy, governments across the world are encouraging health care firms to speed up research and development activities for a vaccine or line of treatment.
First Quarter at a Glance
Several disappointing numbers including job data, industrial production, retail sales, manufacturing activities, home building and consumer confidence, revealed how badly the U.S. economy was hurt in the first quarter due to lockdowns, both domestic and international.
While the economy is witnessing a bloodbath, medical services is an obvious exception. The whole world has pinned hopes on pharmaceutical and biotech companies to create drugs and vaccines to help combat COVID-19. The coronavirus pandemic has almost crippled the global economy.
Our Top Picks
We have narrowed down our search to five health care stocks. Each of these stocks has a Zacks Rank #2 (Buy) and a positive Earnings ESP. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that for stocks with the combination of a Zacks Rank #3 or better and a positive Earnings ESP, the chance of an earnings beat is as high as 70%. These stocks are expected to soar after earnings release. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The chart below shows the price performance of our five picks in the last quarter.
Eli Lilly and Co. (LLY - Free Report) discovers, develops, manufactures, and markets pharmaceutical products worldwide. It offers endocrinology products for diabetes; osteoporosis in postmenopausal women and men and human growth hormone deficiency and paediatric growth conditions. The company has an Earnings ESP of +1.67%.
Eli Lilly has an expected earnings growth rate of 12.1% for the current year. It has a trailing four-quarter positive earnings surprise of 5.2%, on average. The company is set to release earnings results on Apr 23, before the opening bell.
DexCom Inc. (DXCM - Free Report) is a medical device company which focuses on the design, development, and commercialization of continuous glucose monitoring systems in the United States and internationally. It offers its systems to people with diabetes and healthcare service providers. The company has an Earnings ESP of +143.90%.
DexCom has an expected earnings growth rate of 19% for the current year. It has a trailing four-quarter positive earnings surprise of 128.3%, on average. The company is set to release earnings results on Apr 28, after the closing bell.
ViewRay Inc. designs, manufactures and markets radiation therapy systems. It offers MRIdian, a magnetic resonance image-guided radiation therapy system to image and treat cancer patients. The company has an Earnings ESP of +10%. ViewRay has an expected earnings growth rate of 29.7% for the current year. The company is set to release earnings results on Apr 30, after the closing bell.
Chemed Corp. (CHE - Free Report) provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy and volunteers in the United States. It operates through two segments, VITAS and Roto-Rooter. The company has an Earnings ESP of +1.78%.
Chemed has an expected earnings growth rate of 17.1% for the current year. It has a trailing four-quarter positive earnings surprise of 3.4%, on average. The company is set to release earnings results on May 4, after the closing bell.
Sage Therapeutics Inc. (SAGE - Free Report) is a biopharmaceutical company developing and commercializing medicines to treat life-threatening central nervous system disorders. The company has an Earnings ESP of +1.67%.
Sage Therapeutics has an expected earnings growth rate of 14.4% for the current year. The Zacks Consensus Estimate for the current year earnings has improved 11.6% over the last 30 days. It has a trailing four-quarter positive earnings surprise of 0.8%, on average. The company is set to release earnings results on May 7, after the closing bell.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>