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Integer Holdings Corporation ITGR is well-poised for growth on the back of portfolio management, and strong presence in the broader MedTech space. However, stiff competition remains a concern.
Shares of this Zacks Rank #3 (Hold) have surged 41.5% in a year’s time, against the industry’s decline of 2.7%. The S&P 500 Index rose 27.8% in the same time frame.
The company, with a market capitalization of $2.96 billion, manufactures and develops medical devices and components primarily for original equipment manufacturers (OEMs), which depend on it to design, develop and produce intellectual property protected medical device technologies. For 2021, the company’s earnings growth rate is projected at 43.7%. It has a trailing four-quarter earnings surprise of 25.3%, on average.
What’s Favoring the Stock?
Integer Holdings has initiated a new approach to drive sales and profitable growth, following a comprehensive strategic review of the business. Its new strategy has two overarching themes that are focused on portfolio management and operational excellence. This will help the company to realize its vision of enhancing patient lives.
Management, during the second-quarter 2021 earnings call in July, confirmed its continued investment in the execution of its strategy to drive above-market top-line growth and sustained margin expansion.
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The company plans to invest significantly in the areas of Cardio & Vascular, Neuromodulation, and Electrochem to accelerate sales and market penetration. Integer Holdings has been improving profitability in the areas of Advanced Surgical, Orthopedics, and Power Solutions through focused sales growth and cost structure initiatives.
Integer Holdings continues to benefit from a strong presence in the broader MedTech space. This, in turn, will drive overall performance.
What’s Weighing on It?
Integer Holdings currently operates in the highly competitive MedTech market. Consequently, intense competition remains a headwind.
Integer Holdings has been witnessing an upward estimate revision trend for 2021. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved north by 3.4% to $3.98.
The Zacks Consensus Estimate for third-quarter 2021 revenues is pegged at $304.7 million, suggesting growth of 29.1% from the year-ago reported number.
Stocks to Consider
Some better-ranked stocks from the broader medical space are West Pharmaceutical Services, Inc. WST, McKesson Corporation MCK and Patterson Companies, Inc. PDCO, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
West Pharmaceutical’s long-term earnings growth rate is estimated at 27.3%.
McKesson’s long-term earnings growth rate is estimated at 7.5%.
Patterson Companies’ long-term earnings growth rate is projected at 9.6%.
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McKesson Corporation (MCK) : Free Stock Analysis Report
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