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Integer Holdings Corporation ITGR is one of the top-performing stocks in the U.S. MedTech space. The company’s unswerving focus on customer relationship, cost reduction and burgeoning financial performance are the key catalysts.
In the past year, the company’s shares have rallied 54.9% compared with the industry’s rise of 17.3%. The current level is higher than the S&P 500 index’s return of 15.3%.
Integer Holdings’ solid guidance for 2018 instills investors’ optimism. The company expects revenues in the range of $1490-$1530 million on an adjusted comparable basis for 2018. This reflects year-over-year growth of 2-5%. Adjusted earnings are projected in the range of $3.15-$3.45 per share. This reflects year-over-year growth of 12-23%.
Integer Holdings Corporation Price and Consensus
Integer Holdings Corporation Price and Consensus | Integer Holdings Corporation Quote
Buoyed by this, the Zacks Consensus Estimate for 2018 earnings rose 7.8% to $3.30 in the last two months. The company has a Zacks Rank #2 (Buy), which indicates the possibility of outperformance in the near term.
Integer Holdings has a stable footing in the cardiac, neuromodulation, orthopedics, vascular and advanced surgical markets. The company has a presence in the non-medical power solutions market. Its brands include Greatbatch Medical, Lake Region Medical and Electrochem.
Its primary customers include large, multi-national original equipment manufacturers (“OEMs”) and their affiliated subsidiaries.
Recently, Integer Holdings announced a new strategy to boost sales and profit growth, following a comprehensive strategic review of the business. The company’s new strategy has two overarching themes, focused on portfolio management and operational excellence to realize its vision of enhancing patients’ lives.
As part of its Portfolio Management strategy, the Company has identified multiple focus areas for its product lines.
The company plans to make more investments in Cardio & Vascular, Neuromodulation and Electrochem to accelerate sales and market traction. Integer Holdings has been enhancing profitability in the areas of Advanced Surgical, Orthopedics and Power Solutions through focused sales growth and cost-structure initiatives.
Strong prospects in the Cardiac unit hold promise. Revenues in this segment totaled $116.7 million in the last quarter, rising 0.7% from the prior-year quarter. On a comparable organic constant-currency basis, Cardiac & Neuromodulation revenues increased 0.7%.
Relentless focus on customer relationships, numerous value-added services and opportunities for economic efficiencies are expected to drive sales in the segment. In fact, the company is well positioned to optimize total cost of ownership and supply chain control.
Other Key Picks
A few other top-ranked stocks in the broader medical space are Bio-Rad Laboratories BIO, Myriad Genetics Inc. MYGN and Abiomed, Inc. ABMD.
Bio-Rad Laboratories sports a Zacks Rank #1 (Strong Buy). It has a long-term expected earnings growth rate of 15%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Myriad Genetics has a long-term expected earnings growth rate of 10%. The stock carries a Zacks Rank #2.
Abiomed has a long-term expected earnings growth rate of 31.5%. The stock carries a Zacks Rank #2.
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