Here's Why Investors Should Buy BioTelemetry (BEAT) Now
Pennsylvania-based BioTelemetry Inc. BEAT provides ambulatory outpatient management solutions for monitoring clinical information regarding an individual's health. The stock has rallied 25.9% over the last three months, ahead of the S&P 500’s 1.2% gain and broader industry’s gain of 1.5%. The stock has a market cap of $1.15 billion.The company’s long-term growth of 28.4% also holds promise.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick at present.
Let’s find out whether the recent positive trend is a sustainable one.
The company’s estimate revision trend for the moment is positive. In the past 30 days, two analysts moved north, with no movement in the opposite direction for the current year. The magnitude of estimate revision increased around 19.3% to $1.05 per share over the same time frame. For the current quarter, one analyst moved north, compared to no movement in the opposite direction in the last month. The magnitude of estimate revision for the current quarter rose 12% to 28 cents over the same time frame.
BioTelemetry exited the second quarter on a promising note with earnings exceeding the Zacks Consensus Estimate and revenues meeting the same. Notably, this marked the 20th consecutive quarter of year-over-year revenue growth. The company also registered growth across all segments. The expansion in adjusted operating margin also instills confidence in investors.
Further, we are encouraged to note that the company is putting efforts in product innovation through research and development. In this regard we note that research and development expenses increased 27.9% in the last reported second quarter of 2017.
Moreover, in July, BioTelemetry announced the acquisition of LifeWatch AG in a deal valued at about $280 million. With this buyout, BioTelemetry enhanced its position in the wireless medicine space, expanding its product profile and customer base in the cardiac monitoring and diagnostic services space.
The raised full-year 2017 revenue guidance is encouraging. Post the acquisition of LifeWatch, BioTelemetry expects full-year 2017 revenues in the range of $285 million to $290 million.
Other Key Picks
Other top-ranked medical stocks are Edwards Lifesciences Corp. EW, Lantheus Holdings, Inc. LNTH and Chemed Corporation CHE. Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Lantheus Holdings and Chemed carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has gained around 22.7% over the last six months.
Chemed has a long-term expected earnings growth rate of 10.00%. The stock has rallied roughly 5.11% over the last six months.
Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has gained 30.5% over the last six months.
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