U.S. markets open in 8 hours 50 minutes
  • S&P Futures

    -1.50 (-0.03%)
  • Dow Futures

    -30.00 (-0.09%)
  • Nasdaq Futures

    0.00 (0.00%)
  • Russell 2000 Futures

    -2.10 (-0.09%)
  • Crude Oil

    +0.15 (+0.22%)
  • Gold

    -6.60 (-0.36%)
  • Silver

    -0.14 (-0.56%)

    -0.0011 (-0.09%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    -0.69 (-3.84%)

    -0.0016 (-0.11%)

    +0.0890 (+0.08%)

    +624.86 (+1.59%)
  • CMC Crypto 200

    +11.29 (+1.16%)
  • FTSE 100

    -3.43 (-0.05%)
  • Nikkei 225

    +74.30 (+0.27%)

Integra (IART) Hits New 52-Week High: What's Driving It?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Shares of Integra LifeSciences Holdings Corporation IART reached a new 52-week high of $73.58 on Apr 19, before closing the session marginally lower at $72.82. The stock has rallied 5.8% since its fourth-quarter 2020 earnings announcement on Feb 18.

The company is witnessing an upward trend in its stock price, prompted by its solid performance in the fourth quarter despite the pandemic-led business disruptions. The company’s robust international business and strong focus on portfolio optimization boosted market sentiments. However, a stiff competitive landscape and pandemic-led lower demand for surgical procedures are concerning for the company.

Let's delve deeper.

Encouraging Q4 Performance

Integra’s impressive performance in the fourth quarter buoys optimism. The ongoing recovery within the company’s business also looks encouraging. The sequential improvement in segmental revenues in the fourth quarter was impressive. Robust demand for the company’s products was also a positive. The company provided financial guidance for fiscal 2021, calling for growth in revenues and earnings.

Other Growth Drivers

Strong Focus on Portfolio Optimization: Investors are upbeat about Integra reshaping its portfolio with a strategic divestiture during its process to acquire ACell. In January, the company announced divestment of its Extremity Orthopedics business to focus more on its profitable business. With this divestiture, Integra claims itself to be in an even stronger position to capitalize on its core products and technologies in neurosurgery and regenerative medicine as well as provide greater value to customers and shareholders. Notably, Integra is likely to strengthen its balance sheet and increase financial agility with the portfolio optimization.

Impressive International Performance: Integra, during the fourth quarter, witnessed growth in several European countries, with significant revenue uptick in China and Japan as well. Japan has achieved six consecutive quarters of double-digit revenue growth despite the impact of COVID-19. This growth has been driven by its leading neurosurgery portfolio. In 2021, Integra will be launching a number of products, including programmable valves that are specific to the Japan market. This will drive further penetration into the neurosurgery market of Japan.

Integra is also expanding its commercial presence in China. The company entered into its first exclusive licensing and distribution deal with a local Chinese partner, which will result in the launch of new complementary products in 2021.


Competitive Landscape: Integra’s operation in a highly competitive industry, which includes biggies such as Medtronic plc MDT, may induce headwinds. The company needs to be innovative on the product front in order to keep up with the competition. Moreover, consolidation trends in the industry could lead to intense pricing pressure and further competition in this niche.

Pandemic-Led Deferral of Surgical Procedures: Integra’s sales have been hit hard since the beginning of the pandemic. Further, as the pandemic took a graver form, demand for the company’s surgical procedures declined significantly, primarily due to reallocation of resources to address the surging demand caused by the COVID-19 outbreak. There was significant fall in the company’s revenues for the year 2020, resulting from COVID-19-related surgical procedure deferrals and capital spending delays at hospitals.

Zacks Rank & Other Key Picks

Currently, Integra carries a Zacks Rank #2 (Buy).

Some better-ranked stocks from the broader medical space are Align Technology, Inc. ALGN and Cantel Medical Corp. CMD.

Align Technology’s long-term earnings growth rate is estimated at 20.8%. The company presently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cantel’s long-term earnings growth rate is estimated at 19%. It currently carries a Zacks Rank #2.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Medtronic PLC (MDT) : Free Stock Analysis Report

Integra LifeSciences Holdings Corporation (IART) : Free Stock Analysis Report

Align Technology, Inc. (ALGN) : Free Stock Analysis Report

Cantel Medical Corp. (CMD) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research