6 Reasons Why You Should Invest in IQVIA Holdings (IQV) Now
A prudent investment decision involves buying well-performing stocks at the right time while selling those that are at risk. A rise in share price and strong fundamentals signal a stock’s bullish run.
IQVIA Holdings Inc. IQV is a technology service stock that has performed well so far this year and has the potential to sustain the momentum in the near term. Consequently, if you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.
What Makes it an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse on a year-to-date basis. Shares of IQVIA Holdings have returned 23.6%, which compares favorably with the industry‘s rise of 13.1%.
Solid Zacks Rank: IQVIA Holdings currently carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2 offer attractive investment opportunities. Thus, the company appears to be a compelling investment proposition at the moment.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the last 30 days, the Zacks Consensus Estimate for current quarter earnings increased 4.5%. Estimates for 2018 and 2019 moved up 1.9% and 1.6%, respectively, over the same time frame.
Positive Earnings Surprise History: IQVIA Holdings has an impressive earning surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in all the previous four quarters, delivering an average positive earnings surprise of 4.4%.
Strong Growth Prospects: The Zacks Consensus Estimate for current quarter earnings is pegged at $1.39, indicating year-over-year growth of 16.8%. Moreover, earnings are expected to register 17.8% and 14.1% growth, respectively, in 2018 and 2019. The stock has long-term expected earnings per share growth rate of 13.6%.
Growth Factors: IQVIA Holdings looks strong on the back of its technological suite. The company offers an extensive range of technology solutions in the form of cloud-based applications and related services. The company’s Software as a Service (“SaaS”) solution supports a vast range of clinical and commercial processes. By combining its database, healthcare expertise and therapeutic information collected from over 100 countries, IQVIA Holdings creates its Global Market Insight offerings such as MIDAS, Analytics Link and Disease Insights. All these solutions and services are used by healthcare and pharmaceutical companies to organize, enhance and implement their clinical and commercial strategies in a coordinated manner. The company secured major wins for its tech offerings in the form of different awards and deals with new and old clients in the first and the second quarter of 2018.
IQVIA Holdings’ efforts to help its clients gain an accurate and deep understanding of the entire healthcare system and its related processing by providing access to real-world data are appreciable. Such efforts should help the company strengthen its foothold in the real-world business. The company continues to make significant investments in the expansion of its real-world platform and capabilities.
With its increasing presence in emerging markets, IQVIA Holdings should benefit from the evolving growth opportunities in the life sciences industry. Notably, the IQVIA Institute estimates that spending on pharmaceuticals in emerging markets will expand at a CAGR (compound annual growth rate) of 6% to 9% through 2022. On the back of the expanding global healthcare system, IQVIA Holdings is also hopeful of witnessing multiple acquisition opportunities across the industry. Life sciences organizations are also expected to commercialize their operations in the emerging markets just as they did in the developed markets.
We are also impressed with IQVIA Holdings’ endeavors to reward its shareholders. In the first half of 2018, IQVIA Holdings repurchased 6,465,165 shares for $659 million. As of Jun 30, 2018, the company had 1 billion shares available for buyback. In 2017, 2016 and 2015, IQVIA Holdings repurchased shares worth $2.62 billion, $1.09 billion and $516 million, respectively. Such moves indicate the company’s commitment to create value for shareholders and underline its confidence in its business.
Other Stocks to Consider
Some other top-ranked stocks in the broader Business Services sector include Genpact Limited G, WEX Inc. WEX and Broadridge Financial Solutions, Inc. BR. All the stocks carry a Zacks Rank #2.
The long-term expected EPS (three to five years) growth rate for Genpact, WEX and Broadridge is 10%, 15% and 10%, respectively.
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