Yahoo Finance Here's Why You Should Retain Integer Holdings (ITGR) Stock
Integer Holdings Corporation ITGR has been gaining from its research and product development activities. The optimism led by a solid first-quarter 2024 performance and its solid foothold in the broader MedTech space are expected to contribute further. However, healthcare industry regulations and dependence on third-party suppliers are a hurdle.
In the past year, this Zacks Rank #3 (Hold) stock has gained 42.6% compared with the 4.5% rise of the industry and the S&P 500’s 16.5% growth.
The renowned medical device outsource manufacturer has a market capitalization of $3.93 billion. The company projects 12.8% growth for the next five years and expects to maintain its strong performance. Integer Holdings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 10.4%, on average.
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Let’s delve deeper.
Research and Product Development: Investors are optimistic about Integer Holdings’ position as a developer and manufacturer of medical devices and components. The company is focused on developing new products, improving and enhancing existing products and expanding the use of its products in new or tangential applications.
In addition to ITGR’s internal technology and capability development efforts aimed at providing its customers with differentiated solutions, the company engages outside research institutions for unique technology projects.
Solid Foothold in the Broader MedTech Space: Investors are optimistic about Integer Holdings’ stable footing in the cardiac, neuromodulation, orthopedics, vascular and advanced surgical markets. Its primary customers include large, multi-national original equipment manufacturers and their affiliated subsidiaries.
ITGR is focused on sales efforts to increase its market penetration in the Cardio & Vascular, Neuromodulation and Non-Medical Electrochem markets. The company is undertaking strategic initiatives to maintain its leadership position in the cardiac rhythm management market.
Strong Q1 Results: Integer Holdings’ robust first-quarter 2024 results raise optimism. The company registered year-over-year top-line and bottom-line performances. The Medical segment recorded robust results owing to the strength of its product lines.
Downsides
Healthcare Industry Regulations: Several of Integer Holdings’ product lines are subject to international, federal, state and local health and safety, packaging and product content regulations, including the European Medical Device Regulation that went into effect in May 2021 and was adopted by the European Union as a common legal framework for all member states. Additionally, medical devices are subject to regulations by the FDA and similar governmental agencies. This may result in higher-than-anticipated costs or lower-than-anticipated revenues.
Dependence on Third-Party Suppliers: Integer Holdings’ business depends on a continuous supply of raw materials, which may be susceptible to fluctuations due to transportation issues, government regulations and price controls, among others. Significant increases in the cost of raw materials, which cannot be recovered through increases in the prices of the company’s products, could adversely affect its operating results.
Estimate Trend
Integer Holdings is witnessing a negative estimate revision trend for 2024. In the past 90 days, the Zacks Consensus Estimate for earnings has moved 1.3% south to $5.27 per share.
The Zacks Consensus Estimate for the company’s second-quarter 2024 revenues is pegged at $437.3 million, indicating a 9.3% rise from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. DVA, Boston Scientific Corporation BSX and Ecolab Inc. ECL.
DaVita, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DaVita’s shares have gained 45.9% compared with the industry’s 16.9% rise in the past year.
Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.5%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average being 7.5%.
Boston Scientific has gained 51.1% compared with the industry’s 2.9% rise in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 14.3%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.3%.
Ecolab’s shares have rallied 33.5% against the industry’s 12.4% decline in the past year.
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Boston Scientific Corporation (BSX) : Free Stock Analysis Report
Ecolab Inc. (ECL) : Free Stock Analysis Report
DaVita Inc. (DVA) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
