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BioTelemetry (BEAT) Gains But Lags Market: What You Should Know

Zacks Equity Research
Paychex (PAYX) delivered earnings and revenue surprises of -3.08% and 0.26%, respectively, for the quarter ended May 2019. Do the numbers hold clues to what lies ahead for the stock?

BioTelemetry (BEAT) closed at $68.46 in the latest trading session, marking a +0.87% move from the prior day. The stock lagged the S&P 500's daily gain of 1.09%. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, added 1.42%.

Coming into today, shares of the heart monitoring device maker had lost 9.96% in the past month. In that same time, the Medical sector gained 1.58%, while the S&P 500 gained 1.18%.

Investors will be hoping for strength from BEAT as it approaches its next earnings release. The company is expected to report EPS of $0.43, up 10.26% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $104.29 million, up 10.36% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.94 per share and revenue of $439.74 million, which would represent changes of 0% and +10.08%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for BEAT. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.13% higher. BEAT is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, BEAT is currently trading at a Forward P/E ratio of 34.94. This represents a premium compared to its industry's average Forward P/E of 21.42.

The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BEAT in the coming trading sessions, be sure to utilize Zacks.com.

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