Yahoo Finance Here's Why You Should Consider Buying Bioventus (BVS) Stock
Bioventus BVS makes minimally invasive treatments that engage and enhance the body’s natural healing process. Bioventus is focusing on accelerating top-line growth, enhancing operational efficiency and improving profitability, cash flow, and liquidity.
Its medical products are focused on three segments — Pain Treatments, Restorative Therapies and Surgical Solutions. It is seeing double-digit revenue growth in both Pain Treatments and Surgical Solutions, which has improved its profitability. It delivered 15% organic revenue growth in the first quarter of 2024. Adjusted EBITDA increased 33% year over year in the quarter. Adjusted gross margin of 76% increased 190 basis points. The company expects the positive momentum to continue in the remainder of 2024.
The company raised its financial guidance for 2024 with the first-quarter earnings release based on accelerated momentum in its business and increased expectations. Its net sales are expected to be in the range of $535 million to $550 million in 2024, an increase of $15 million from previous guidance. Earnings per share are expected in the range of 25 cents to 33 cents, an increase of 13 cents from the previous expectation.
As regards improving its liquidity position, Bioventus reduced its net leverage ratio to below four times at the end of the first quarter, much ahead of the prior expectation of achieving this target by the end of 2024. The company expects to steadily pay down debt in the quarters ahead and expects to reduce the net leverage ratio to around three times by the end of 2025.
Bioventus’ stock has risen 27.1% year to date against a decrease of 6.7% for the industry.
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Bioventus carries a Zacks Rank #1 (Strong Buy) currently.
In the past 60 days, 2024 earnings estimates for Bioventus have improved from 16 cents per share to 27 cents per share. For 2025, earnings estimates have improved from 40 cents to 43 cents per share in the past 60 days.
Earnings of Bioventus beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 151.67%.
Other Stocks to Consider
Some other top-ranked stocks in the healthcare sector are Acrivon Therapeutics ACRV, Heron Therapeutics HRTX and PMV Pharmaceuticals PMVP, with a Zacks Rank of 2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, loss estimates for Acrivon Therapeutics have narrowed from $3.51 per share to $2.47 per share for 2024. For 2025, the loss estimate has narrowed from $3.41 per share to $2.55 per share over the same timeframe.
ACRV beat estimates in three of the trailing four quarters and missed the mark once, delivering an average earnings surprise of 3.56%. Year to date, shares of ACRV have risen 48.6%.
In the past 60 days, loss estimates for Heron Therapeutics have narrowed from 22 cents per share to 10 cents per share for 2024. For 2025, estimates have improved from a loss of 9 cents per share to earnings of 1 cent per share over the same timeframe. Year to date, shares of HRTX have risen 111.8%.
Earnings of Heron Therapeutics beat estimates in three of the last four quarters while missing in one, delivering a four-quarter average earnings surprise of 30.33%.
In the past 60 days, estimates for PMV Pharmaceuticals’ 2024 loss per share have narrowed from $1.47 per share to $1.36 per share. Estimates for 2025 loss have improved from $1.64 per share to $1.48 per share. Year to date, shares of PMVP have declined 44.8%.
Earnings of PMV Pharmaceuticals beat estimates in each of the last four quarters. PMVP delivered a four-quarter average earnings surprise of 19.60%.
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Heron Therapeutics, Inc. (HRTX) : Free Stock Analysis Report
PMV Pharmaceuticals, Inc. (PMVP) : Free Stock Analysis Report
Bioventus Inc. (BVS) : Free Stock Analysis Report
Acrivon Therapeutics, Inc. (ACRV) : Free Stock Analysis Report
