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MWI Vet Upgraded to Buy

Zacks Equity Research

On Aug 9, 2013, Zacks Investment Research upgraded MWI Veterinary Supply Inc. (MWIV) – a leading distributor of animal health products to veterinarians – to a Zacks Rank #2 (Buy). The upgrade came on the back of MWI Vet’s consistently better-than-expected quarterly results in the recent past.

Why the Upgrade?

MWI Vet witnessed rising earnings estimates on the back of excellent third-quarter fiscal 2013 results. The earnings beat in the third quarter represented the seventh successive quarterly earnings beat.

This Meridian, Ida.-based company delivered positive earnings surprises in all of the last four quarters with an average beat of 5.29%. The long-term expected earnings growth rate for this stock also stands at an impressive 14.8%. Despite the drought conditions in the U.S. production animal market, the company’s revenues have consistently moved north over the last few years.

In addition, MWI Vet has been trying to focus on value-added services, including the e-commerce platform and pharmacy fulfillment programs for both production and companion animal products.The company’s organic growth in the U.S. was driven by its prompt customer service, rapid adoption of the e-commerce platform by veterinarians and strong performance of the sales force. We believe that these key strategies hold immense potential for the company’s future growth.

The Zacks Consensus Estimate for 2013 has increased by 1.2% to $4.93 per share, as all the estimates were revised higher over the last 30 days.

Stocks to Consider

Other medical devices companies that are expected to outperform in the near term are Cyberonics Inc. (CYBX), Thoratec Corp. (THOR) and Alere Inc. (ALR). All three stocks carry a Zacks Rank #1 (Strong Buy).

Read the Full Research Report on THOR

Read the Full Research Report on MWIV

Read the Full Research Report on ALR

Read the Full Research Report on CYBX

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