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IQVIA Holdings (IQV) Hits 52-Week High: What's Driving It?

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Shares of IQVIA Holdings Inc. IQV scaled a 52-week high of $240.82 in the trading session on May 21, before closing a tad lower at $238.96.

The company’s shares have charted a solid trajectory, appreciating 33.4% year to date, ahead of 1.8% decline of the industry it belongs to and 11.2% rally of the Zacks S&P 500 composite.

Notably, IQVIA has witnessed a 5.8% rise in share price since it posted first-quarter 2021 results.

Let’s find out what’s supporting the uptick.

Upbeat 2021 Guidance

IQVIA raised its 2021 guidance. Revenues are now expected within $13.2-$13.5 billion compared with the prior guidance of $12.55-$12.90 billion. The current Zacks Consensus Estimate of $13.24 billion lies within the updated guidance.

Adjusted earnings per share are now expected to be between $8.50 and $8.75, compared with the prior guidance of $7.89-$8.20. The current Zacks Consensus Estimate of $8.49 lies below the updated guidance.

Adjusted EBITDA is now anticipated to be between $2.900 billion and $2.965 billion compared with the prior guidance of $2.760-$2.840 billion.

Consecutive Earnings & Revenue Beat

IQVIA Holdings came up with better-than-expected earnings and revenue performance in all four quarters of 2020 as well as in first-quarter 2021. The company’s bottom line continued to benefit from improvement in operational efficiency and decline in interest expenses. Strength across the company’s Technology & Analytics Solutions segment boosts the top line.

Robust Set of Capabilities

IQVIA has a strong healthcare-specific global IT infrastructure, analytics-driven clinical development capabilities, a robust real-world solutions ecosystem and a growing set of proprietary clinical and commercial applications that allow it to grow and retain relationships with healthcare stakeholders. The company’s combined offerings of research and development, and commercial services have been helping it to develop trusted relationships, resulting in a diversified base of over 10,000 clients in over 100 countries.

Zacks Rank and Other Stocks to Consider

IQVIA Holdings currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the broader Zacks Business Services sector are Equifax EFX, Charles River CRAI and TransUnion TRU, each carrying a Zacks Rank #2.

The long-term expected earnings per share (three to five years) growth rate for Equifax, Charles River and TransUnion is 14%, 15.5% and 20.9%, respectively.

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