On Jan 25, we issued an updated research report on Varian Medical Systems, Inc. VAR. The company’s strong global foothold and a promising Proton Therapy platform are major positives.
The stock currently carries a Zacks Rank #2 (Buy).
In the past year, Varian’s shares have rallied 2.5%, outperforming the industry’s rise of 1.4%. The current level also compares favorably with the S&P 500’s decline of 6.3%.
Over the last 30 days, the Zacks Consensus Estimate for the company’s fiscal second-quarter earnings per share moved up by a penny to $1.14.
Varian Medical Systems, Inc. Price and Consensus
Varian Medical Systems, Inc. Price and Consensus | Varian Medical Systems, Inc. Quote
What’s Favoring Varian?
Varian currently enjoys a strong global presence.
In the recently-reported first quarter of fiscal 2019, gross orders under the company’s core Oncology segment rose 15% year over year in EMEA, marking the sixth consecutive quarter of double-digit growth. In APAC, gross orders increased 25% year over year on strength in China.
In Asia, Varian received orders for eight systems from the Philippines Department of Health. The company also opened a manufacturing facility in Jundiai, Brazil and delivered its first locally manufactured TrueBeams to Oncoclinicas in the country.
Last November, Varian was selected by Medical Specialist Holdings to equip seven of its centers in South Africa with Varian Linux and Eclipse treatment planning system.
Moreover, Varian’s flagship Halcyon radiotherapy treatment system recently secured approval from the China National Medical Product Administration, which is likely to expand the global availability of Halcyon. Last December, Halcyon was granted exclusion from the section 301 tariffs by the United States Trade Representative (USTR).
In its Proton Therapy platform, Varian saw some notable developments in recent times.
This month, Varian announced the installation of the gantry for the Varian ProBeam Compact single-room proton therapy system at the new oncology center at Biopolis, an international biomedical research hub in Singapore.
Last December, Varian’s Eclipse treatment planning system was selected by Switzerland-based Paul Scherrer Institute Center for Proton Therapy for intensity modulated proton therapy (IMPT) treatments.
In fact, in the fiscal first quarter, revenues at the segment climbed 32% on a year-over-year basis.
Despite the favorable scenario, the U.S.-China tariffs have continued to plague the MedTech giant. Notably, in the recently-reported fiscal first quarter, Varian’s revenues and operating earnings were negatively impacted by tariffs.
Other Key Picks
Other top-ranked stocks in the broader medical space are Becton, Dickinson and Company BDX, Accuray Incorporated ARAY and AngioDynamics ANGO.
Becton, Dickinson’s long-term earnings growth is projected at 11.5%. The stock carries a Zacks Rank #2.
Accuray’s expected earnings growth rate for the current quarter is 60%. The stock carries a Zacks Rank #2.
AngioDynamics’ current-year earnings growth is expected to be 16.2%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
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
Varian Medical Systems, Inc. (VAR) : Free Stock Analysis Report
AngioDynamics, Inc. (ANGO) : Free Stock Analysis Report
Accuray Incorporated (ARAY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research