So far this year, shares of IQVIA Holdings Inc. IQV have gained 26.1% compared with 11.1% growth of the industry it belongs to and 22.8% increase of the Zacks S&P 500 composite.
The company delivered impressive third-quarter 2019 results, with earnings and revenues beating the Zacks Consensus Estimate. Adjusted earnings per share of $1.60 beat the consensus mark by 1.9% and increased 12.7% on a year-over-year basis. Total revenues of $2.77 billion outpaced the consensus estimate by 0.2% and increased 6.7% year over year on a reported basis and 7.9% on a constant-currency basis.
IQVIA Holdings has an impressive earnings surprise history, having outpaced estimates in each of the last four quarters. The company delivered average positive earnings surprise of 1.9%.
What’s Driving IQVIA Holdings?
IQVIA Holdings is gaining momentum from its solid technological suite. The company offers an extensive range of technology solutions in the form of cloud-based applications and related services. The company’s Software as a Service (“SaaS”) solution supports a vast range of clinical and commercial processes. By combining its database, healthcare expertise and therapeutic information collected from over 100 countries, the company creates its Global Market Insight offerings such as MIDAS, Analytics Link and Disease Insights. All these solutions and services are used by healthcare and pharmaceutical companies to organize, enhance and implement their clinical and commercial strategies in a coordinated manner. It continues to secure notable awards and deals for its tech offerings from both new and old clients.
Moreover, IQVIA Holdings’ efforts to help its clients gain an accurate and deep understanding of the entire healthcare system and its related processing by providing access to real-world data are appreciable. Such efforts should help the company strengthen its foothold in the real-world business. Meanwhile, IQVIA Holdings continues to make significant investments in the expansion of its real-world platform and capabilities.
With its increasing presence in emerging markets, IQVIA Holdings should benefit from the evolving growth opportunities in the life sciences industry. Notably, the IQVIA Institute estimates that spending on pharmaceuticals in emerging markets will expand at a CAGR (compound annual growth rate) of 6% to 9% through 2022. On the back of the expanding global healthcare system, the company is also hopeful of witnessing multiple acquisition opportunities across the industry. Life sciences organizations are also expected to commercialize their operations in emerging markets just as they did in developed markets.
Zacks Rank & Other Stocks to Consider
Currently, IQVIA Holdings carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader Zacks Business Services sector are Global Payments GPN, Mastercard MA and Cardtronics CATM. While Global Payments and Cardtronics sport a Zacks Rank #1 (Strong Buy), Mastercard carries a Zacks Rank #2.
Long-term expected EPS (three to five years) growth rate for Global Payments, Mastercard and Cardtronics is 17%, 15.9% and 4%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
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