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IQVIA Holdings' (IQV) Stock Up 44% Year to Date: Here's Why

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Shares of IQVIA Holdings Inc.IQV have charted a solid trajectory, appreciating 44% so far this year against 20% decline of the industry it belongs to. The Zacks S&P 500 composite rose 20.7% in the said time frame.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Let’s delve into the factors that have contributed to the company’s outperformance.

Raised 2021 Guidance

IQVIA Holdings raised its 2021 guidance. Revenues are now expected in the band of $13.55-$13.7 billion compared with the prior projection of $13.2-$13.5 billion. The current Zacks Consensus Estimate of $13.67 billion lies within the updated guidance.

Adjusted earnings per share are expected between $8.70 and $8.90 compared with the prior forecast of $8.50-$8.75. The current Zacks Consensus Estimate of $8.84 lies within the updated guidance.

Adjusted EBITDA is anticipated between $2.950 billion and $3 billion compared with the prior prediction of $2.900-$2.965 billion.

Consecutive Earnings & Revenue Beat

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

Robust Set of Capabilities

IQVIA Holdings 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 as well as 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, in turn resulting in a diversified base of more than 10,000 clients in over 100 countries.

Zacks Rank and Stocks to Consider

IQVIA Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Equifax EFX, BGSF Inc. BGSF and Avis Budget CAR, each carrying a Zacks Rank #2 (Buy).

The long-term expected EPS (three to five years) growth rate for Equifax, BGSF and Avis Budget is pegged at 15.2%, 20% and 57.2%, respectively.


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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report

Equifax, Inc. (EFX) : Free Stock Analysis Report

BGSF, Inc. (BGSF) : Free Stock Analysis Report

IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report

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Zacks Investment Research