Yahoo Finance Here's Why You Should Retain Integer Holdings (ITGR) Stock Now
Integer Holdings Corporation ITGR is well-poised for growth, courtesy of improving non-medical sales. A robust first-quarter 2022 performance, along with its solid presence in the broader MedTech space, is expected to contribute further. However, stiff competition continues to raise concerns.
Shares of this currently Zacks Rank #3 (Hold) company have lost 24.5% compared with the industry’s decline of 26.1% over the past year. The S&P 500 Index has fallen 12.1% in the same time frame.
ITGR — with a market capitalization of $2.38 billion — manufactures and develops medical devices and components primarily for original equipment manufacturers (OEMs), which depend on it to design, develop and produce intellectual property-protected medical device technologies. The company’s earnings yield of 6.3% compares favorably with the industry’s (7.5%). It beat earnings estimates in three of the trailing four quarters and missed once, the average surprise being 4.4%.
Key Catalysts
Integer Holdings delivered encouraging results with respect to its Non-Medical segment. In the first quarter of 2022, revenues at the Non-Medical Sales segment rose 18.4% year over year, both on a reported and on an organic basis. Sales at the Electrochem product line, which is part of the Non-Medical segment, improved 18% on the back of the continued recovery of the energy market.
Apart from this, the company’s robust first-quarter results raise our optimism. Strong year-over-year top-line performance in the first quarter of 2022 is impressive. Robust segmental performances, along with strength in the majority of its product lines, are encouraging. Continued business recovery despite U.S. labor constraints and global supply-chain disruptions is encouraging. Integer Holdings’ buyout of Aran Biomedical in April raises optimism about the stock.
Image Source: Zacks Investment Research
Integer Holdings’ stable footing in the cardiac, neuromodulation, orthopedics, vascular and advanced surgical markets raise optimism. Its primary customers include large, multi-national original equipment manufacturers and their affiliated subsidiaries.
Integer Holdings has been focusing on its sales efforts when it comes to increasing its market penetration in the Cardio & Vascular, Neuromodulation and Non-Medical Electrochem markets. The company has been taking strategic initiatives to maintain its leadership position in the cardiac rhythm management market.
Factor Hurting the Stock
Competition with respect to the manufacturing of Integer Holdings’ medical products across all of its product lines has intensified in recent years and may continue to do so in the future. The market for commercial power sources is competitive, fragmented and subject to rapid technological change. Several other commercial power source suppliers are larger than Integer Holdings and have greater resources, which may help them develop superior (technologically or otherwise) or more cost-effective products than the latter, thus resulting in lower revenues and operating results for Integer Holdings.
Estimate Trend
For 2022, the Zacks Consensus Estimate for revenues is pegged at $1.37 billion, indicating an improvement of 11.9% from the year-ago period’s reported figure. The consensus mark for earnings stands at $4.51, suggesting growth of 10.5% from the prior-year quarter.
Stocks to Consider
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. AMN, Masimo Corporation MASI and ShockWave Medical, Inc. SWAV.
AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 15.6%. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare’s long-term earnings growth rate is estimated at 1.1%. The company’s earnings yield of 11.4% compares favorably with the industry’s (0.8%).
Masimo beat earnings estimates in each of the trailing four quarters, the average surprise being 4.4%. The company currently carries a Zacks Rank #2 (Buy).
Masimo’s estimated earnings growth rate for second-quarter 2022 is pegged at 22.3%. The company’s earnings yield is 3.8% against the industry’s (8.5%).
ShockWave Medical surpassed earnings estimates in each of the trailing four quarters, the average surprise being 189.9%. The company currently flaunts a Zacks Rank #1.
ShockWave Medical’s earnings growth rate for 2022 is estimated at 807.7%. The company’s earnings yield of 0.9% compares favorably with the industry’s (8%).
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
Masimo Corporation (MASI) : Free Stock Analysis Report
AMN Healthcare Services Inc (AMN) : Free Stock Analysis Report
Integer Holdings Corporation (ITGR) : Free Stock Analysis Report
ShockWave Medical, Inc. (SWAV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
