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IQVIA Holdings (IQV) Stock Up 74.6% Over a Year: Here's Why

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Shares of IQVIA Holdings Inc.IQV have charted a solid trajectory, appreciating 74.6% over the past year, surpassing 9.6% growth of the industry it belongs to and 39.1% rally of the Zacks S&P 500 composite.

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 has raised its 2021 guidance. Revenues are now expected within $13.2-$13.5 billion compared with the prior-guided range of $12.55-$12.90 billion. The current Zacks Consensus Estimate of $13.37 billion lies within the updated guidance.

Adjusted earnings per share are now expected between $8.50 and $8.75 compared with the prior-guided range of $7.89-$8.20. The current Zacks Consensus Estimate of $8.69 lies within the updated guidance.

Adjusted EBITDA is now anticipated between $2.900 billion and $2.965 billion compared with the prior-guided range of $2.760-$2.840 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 first-quarter 2021. The company’s bottom line continued to benefit from improvement 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 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 include Interpublic IPG, Gartner IT and Charles River CRAI, each carrying a Zacks Rank #2 (Buy).

Long-term (three to five years) expected earnings per share growth rate for Interpublic, Gartner and Charles River is projected at 10.2%, 13.5% and 15.5%, respectively.

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

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