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.
Given this backdrop, we think healthcare stocks DENTSPLY SIRONA Inc. (XRAY – Get Rating) and Bruker Corporation (BRKR – Get Rating) could be solid pics now because they possess solid growth attributes.
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.
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…
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