Rise in ageing population and a long track record of chronic diseases make the United States the world’s largest medical device market. Furthermore, the market is currently riding on the recent suspension of the infamous 2.3% Medical Device tax. The tax deferral for another two years is likely to prove beneficial for the companies over the long haul, as it will significantly boost their R&D prospects.
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
ABIOMED, Inc. (ABMD): Free Stock Analysis Report
Integer Holdings Corporation (ITGR): Free Stock Analysis Report
Genomic Health, Inc. (GHDX): Free Stock Analysis Report
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Zacks Investment Research
Per a research by Emergo, the U.S. Medical Device industry is projected to reach a market value of $173 billion by 2019.
Intuitive Surgical, Inc. (ISRG) and Integer Holdings Corporation (ITGR) are two close contenders in this space.
Notably, Intuitive Surgical sports a Zacks Rank #1 (Strong Buy) while Integer Holdings carries a Zacks Rank #2 (Buy). This instils investors’ confidence in the stocks. Intuitive Surgical has Growth Score of C and the same for Integer Holdings is B, indicating the latter’s better prospects over the long haul.Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, are profitable picks. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here, we make a detailed analysis of the companies’ fundamentals to determine which stock is currently positioned better in the Medical Instruments space.
With a market cap of $55.57 billion, Intuitive Surgical engages in designing and manufacturing of the coveted da Vinci surgical systems.
Based in Texas, Integer Holdings manufactures and develops medical devices and components primarily for original equipment manufacturers. The company has a market cap of $2.08 billion.
Price Performance
In the past six months, shares of Integer Holdings have rallied 39.7% compared with Intuitive Surgical’s gain of 33.5% against the industry’s decline of 4.4%.The stockshave also outperformed the S&P 500 Index’s return of 3.5% over the same time frame.
Thus, when price performance is considered, Integer Holdings is in an advantageous position.
Earnings Growth Projections
The Zacks Consensus Estimate for Intuitive Surgical’s current-year earnings is pegged at $10.26, reflecting a projected growth rate of 14.1%.
The same for Integer Holdings stands at $3.37 indicating growth of 19.9%.
Thus, Integer Holdings wins this round as well.
Sales Growth Projections
The Zacks Consensus Estimate for Intuitive Surgical’s current-year revenues is pegged at $3.61 billion, showing an anticipated growth of 15.2%.
The same for Integer Holdings stands at $1.53 billion, reflecting growth of 4.9%.
Here, Intuitive Surgical scores over Integer Holdings.
Factors Driving the Stocks
Intuitive Surgical
CA-based Intuitive Surgical rides on the solid performance of its noted da Vinci surgical system. Notably, this system enables minimally-invasive surgery that helps avoid the trauma associated with open surgery.
In a recent study, it was also found that patients undergoing robotic-assisted surgery using da Vinci surgical system had lesser complications.
In the first quarter of 2018, the da Vinci installed base grew 13% on year-over-year basis.
Furthermore, the company recently began direct operations in India, through its distributor, Vattikuti Technologies Pvt. Ltd. (Read more: Intuitive Surgical Commences Direct Operations in India).
Integer Holdings
The company recently signed an agreement to divest its core Advanced Surgical and Orthopaedics unit (“AS&O”) to MedPlast, LLC for $600 million. Management expects the deal to unlock significant value in the long run.
Notably, in the first quarter of 2018, the AS&O segment generated revenues of $121.8 million, up 15.8% from the prior-year quarter. Revenues witnessed organic growth of 11.5%, year over year. Furthermore, the company rides on a strong guidance for 2018.
It expects adjusted earnings per share within $3.20-3.20, reflecting growth of 14-25%.Revenues are anticipated to be between $1.51 billion and $1.55 billion, indicating growth of 3-6%.
In Conclusion
Our comparative analysis indicates that Integer Holdings is positioned better than Intuitive Surgical, considering price performance, style score and earnings growth projections.
Other Key Picks
A couple of other top-ranked stocks in the broader medical space are Genomic Health (GHDX) and Abiomed, inc. (ABMD).
Genomic Health has an expected earnings growth rate of 187.5% for the current quarter. The stock flaunts a Zacks Rank #1.
Abiomed has an expected long-term earnings growth rate of 27% and sports a Zacks Rank #1.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Rise in ageing population and a long track record of chronic diseases make the United States the world’s largest medical device market. Furthermore, the market is currently riding on the recent suspension of the infamous 2.3% Medical Device tax. The tax deferral for another two years is likely to prove beneficial for the companies over the long haul, as it will significantly boost their R&D prospects.
Per a research by Emergo, the U.S. Medical Device industry is projected to reach a market value of $173 billion by 2019.
Intuitive Surgical, Inc. (NASDAQ:ISRG) and Integer Holdings Corporation (NYSE:ITGR) are two close contenders in this space.
Notably, Intuitive Surgical sports a Zacks Rank #1 (Strong Buy) while Integer Holdings carries a Zacks Rank #2 (Buy). This instils investors’ confidence in the stocks. Intuitive Surgical has Growth Score of C and the same for Integer Holdings is B, indicating the latter’s better prospects over the long haul.Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, are profitable picks. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here, we make a detailed analysis of the companies’ fundamentals to determine which stock is currently positioned better in the Medical Instruments space.
With a market cap of $55.57 billion, Intuitive Surgical engages in designing and manufacturing of the coveted da Vinci surgical systems.
Based in Texas, Integer Holdings manufactures and develops medical devices and components primarily for original equipment manufacturers. The company has a market cap of $2.08 billion.
Price Performance
In the past six months, shares of Integer Holdings have rallied 39.7% compared with Intuitive Surgical’s gain of 33.5% against the industry’s decline of 4.4%.The stocks have also outperformed the S&P 500 Index’s return of 3.5% over the same time frame.
Thus, when price performance is considered, Integer Holdings is in an advantageous position.
Earnings Growth Projections
The Zacks Consensus Estimate for Intuitive Surgical’s current-year earnings is pegged at $10.26, reflecting a projected growth rate of 14.1%.
The same for Integer Holdings stands at $3.37 indicating growth of 19.9%.
Thus, Integer Holdings wins this round as well.
Sales Growth Projections
The Zacks Consensus Estimate for Intuitive Surgical’s current-year revenues is pegged at $3.61 billion, showing an anticipated growth of 15.2%.
The same for Integer Holdings stands at $1.53 billion, reflecting growth of 4.9%.
Here, Intuitive Surgical scores over Integer Holdings.
Factors Driving the Stocks
Intuitive Surgical
CA-based Intuitive Surgical rides on the solid performance of its noted da Vinci surgical system. Notably, this system enables minimally-invasive surgery that helps avoid the trauma associated with open surgery.
In a recent study, it was also found that patients undergoing robotic-assisted surgery using da Vinci surgical system had lesser complications.
In the first quarter of 2018, the da Vinci installed base grew 13% on year-over-year basis.
Furthermore, the company recently began direct operations in India, through its distributor, Vattikuti Technologies Pvt. Ltd. (Read more: Intuitive Surgical Commences Direct Operations in India).
The company recently signed an agreement to divest its core Advanced Surgical and Orthopaedics unit (“AS&O”) to MedPlast, LLC for $600 million. Management expects the deal to unlock significant value in the long run.
Notably, in the first quarter of 2018, the AS&O segment generated revenues of $121.8 million, up 15.8% from the prior-year quarter. Revenues witnessed organic growth of 11.5%, year over year. Furthermore, the company rides on a strong guidance for 2018.
It expects adjusted earnings per share within $3.20-3.20, reflecting growth of 14-25%.Revenues are anticipated to be between $1.51 billion and $1.55 billion, indicating growth of 3-6%.
In Conclusion
Our comparative analysis indicates that Integer Holdings is positioned better than Intuitive Surgical, considering price performance, style score and earnings growth projections.
Other Key Picks
A couple of other top-ranked stocks in the broader medical space are Genomic Health (NASDAQ:GHDX) and Abiomed, inc. (NASDAQ:ABMD) .
Genomic Health has an expected earnings growth rate of 187.5% for the current quarter. The stock flaunts a Zacks Rank #1.
Abiomed has an expected long-term earnings growth rate of 27% and sports a Zacks Rank #1.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
ABIOMED, Inc. (ABMD): Free Stock Analysis Report
Integer Holdings Corporation (ITGR): Free Stock Analysis Report
Genomic Health, Inc. (GHDX): Free Stock Analysis Report
Original post
Zacks Investment Research
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