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Hill-Rom (HRC) Gains Ground on Global Expansion, New Menu

Zacks Equity Research

On Jan 20, we issued an updated research report on Hill-Rom Holdings, Inc. HRC. The company is witnessing a solid uptick in domestic revenues, driven by a sturdy performance in Patient Support Systems and Front-Line Care. The stock carries a Zacks Rank #2 (Buy).

Shares of Hill-Rom have outperformed the industry in the past three months. The stock has rallied 13.9% compared with the industry's 7.9% rise.

Notably, Hill-Rom exited fiscal 2019 on a strong note with better-than-expected quarterly results. Core revenue growth was 8%, marking the 6th consecutive quarter of increase in mid-single digits or higher. The company saw a solid year-over-year rise in revenues on robust domestic growth, driven by robust performances at Patient Support Systems.

Hill-Rom Holdings, Inc. Price

Hill-Rom Holdings, Inc. Price

Hill-Rom Holdings, Inc. price | Hill-Rom Holdings, Inc. Quote

The company’s international geographies including Asia Pacific, Latin America and EMEA registered strong revenue growth. It is looking forward to its recent acquisitions of Breathe Technologies and Voalte that cite excellent examples of strategic capital deployment to advance leadership in high-growth, healthy margin categories while adhering to rigorous strategic and financial criteria for generating attractive returns.

Contribution from new products has been a significant top-line driver during 2019, growing approximately 300 basis points. Products launched in 2019 include RetinaVue 700 Imager, EarlySense and WatchCare. With several other products in the pipeline, the company pins hopes on generating long-lasting growth in the upcoming quarters.

However, sales in Surgical Solutions dropped significantly. Issues like domestic and global economic headwinds, unfavorable foreign exchange and competitive landscapes are also concerning.

Other Key Picks

A few other top-ranked stocks from the broader medical space are Haemonetics Corporation HAE, Omnicell OMCL and Medtronic plc MDT.

Haemonetics has a Zacks Rank #1 (Strong Buy) and a projected long-term earnings growth rate of 13.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Omnicell has a long-term earnings growth rate of 12.5% and a Zacks Rank of 2.

Medtronic’s long-term earnings growth rate is expected at 7.4%. It is currently Zacks #2 Ranked.

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Omnicell, Inc. (OMCL) : Free Stock Analysis Report
 
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