The healthcare industry is poised to grow substantially over the long term, facilitated by huge investments and increasing technological advancements. Artificial Intelligence (AI) based technology and healthcare analytics are dominating the market significantly.
The healthcare analytics market is expected to hit $80.21 billion by 2026, exhibiting a 27.55 CAGR. Also, AI in healthcare is projected to grow at an approximate 51.5% CAGR over the period. The healthcare sector is experiencing a significant upswing owing to disruptive innovation and capital inflows.
DENTSPLY SIRONA Inc. (XRAY)
XRAY designs, develops, manufactures, and sells various dental products and technologies primarily for the professional dental market. The company operates in two segments, Technologies & Equipment; and Consumables.
On June 7, XRAY launched its pre-sterilized blister packs of Vortex Blue endodontic instruments. This advancement is a prominent addition to its broad portfolio of files for endo treatments.
On June 4, the company announced the acquisition of substantially all the assets of Propel Orthodontics, a leading innovator in orthodontic devices. The acquisition should allow XRAY to strengthen its position further in the fast-growing clear aligner market.
XRAY has an impressive growth history. Its revenues have improved at a 4.6% CAGR over the past five years, while its levered FCF has increased at a 28.8% CAGR over the past three years. Furthermore, its EPS is expected to improve at a 26.4% rate per annum over the next five years.
XRAY’s net sales have increased 17.5% year-over-year to $1.03 billion in its fiscal first quarter ended March 31. Its non-GAAP operating income grew 67.2% from its year-ago value to $219 million, while its net income improved 183.6% year-over-year to $117 million. The company’s non-GAAP EPS increased 67.4% year-over-year to $0.72.
Analysts expect XRAY’s revenues to increase 27% year-over-year to $4.25 billion in the current year. A $2.87 consensus EPS estimate for the current year indicates a 60.3% rise versus the last year. XRAY has an impressive earnings surprise history as well; it beat the consensus EPS estimates in three out of the trailing four quarters.
Shares of XRAY have gained 38% over the past year and 16.8% year-to-date.
It is no surprise that XRAY has an overall B rating, which equates to Buy in our proprietary POWR Ratings system. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.
The stock also has an A grade for Growth, and B for Value, Sentiment, and Quality. Among the 184 stocks in the Medical – Devices & Equipment industry, XRAY is ranked #14.
To see additional XRAY ratings for Stability and Momentum, click here.
Bruker Corporation (BRKR)
BRKR is a market leader in high-value analytical technologies. It develops, manufactures, and distributes scientific instruments, and analytical and diagnostic solutions globally. The company operates through three segments: Bruker Scientific Instruments (BSI) Life Science, BSI NANO, and Bruker Energy & Supercon Technologies.
On June 21, BRKR launched a new VIP-HESI ion source and new integrated software tools to increase confidence in 4D-Metabolomics and 4D-Lipidomics workflows. The launches demonstrate its dominance in the next generation lipidomics and metabolomics space.
Earlier in June, , BRKR launched CE-IVD Quantitative Coronavirus Mid-Plex PCR Assay with mutation detection for routine variant differentiation in just one PCR test. This should be widely demanded because it avoids the workload, cost, and time for a second PCR test or sequencing.
BRKR’s net income has improved at a 34.4% CAGR over the past three years, while its levered FCF increased at an 87.3% CAGR over this period. Its EPS improved at a 35.6% CAGR over the past three years. Also, BRKR’s EPS is expected to increase at a 16.5% rate per annum over the next five years.
BRKR’s revenue has increased 30.8% year-over-year to $554.70 million in its fiscal first quarter, ended March 31. Its gross profit stood at $278.70 million, up 44.9% from the same period last year. Its operating income grew 443.3% from its year-ago value to $89.1 million. The company’s EPS increased 428.6% year-over-year to $0.37.
A $571.73 million consensus revenue estimate for its fiscal third quarter (ending September 2021) indicates an 11.8% increase year-over-year. The Street expects the company’s EPS to rise 4.8% from the prior-year quarter to $0.44 in the current quarter. Also, BRKR surpassed the Street’s EPS estimates in each of the trailing four quarters. BRKR gained 82.9% over the past year. The stock has gained 44.8% year-to-date.
BRKR has an overall A rating, which equates to Strong Buy in our proprietary POWR Ratings system. BRKR has an A grade for Growth, and B for Value, Sentiment, and Quality. It is ranked #1 among the 55 stocks in the Medical – Diagnostics/Research industry.
Click here to view additional BRKR ratings for Momentum and Stability.
XRAY shares were trading at $60.69 per share on Monday afternoon, down $0.47 (-0.77%). Year-to-date, XRAY has gained 16.30%, versus a 14.41% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics. More…