Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

Here's Why You Should Bet on BioTelemetry (BEAT) Stock Now

Shares of BioTelemetry Inc. BEAT have moved up 19.2% over the last six months, ahead of the S&P 500’s 6.7% gain and broader industry’s rally of 6.6%. The stock has a market cap of $1 billion. The company has a long-term growth of 19.2%.

With solid prospects, this Zacks Rank #1 (Buy) stock is an attractive pick at present. The company has delivered a positive average earnings surprise of 16.9% in the last four quarters.

Let’s find out whether these recent positive trends are sustainable ones.

The company’s estimate revision trend is positive. In the past 60 days, two analyst estimates moved north, with no movement in the opposite direction for the current year. The Zacks Consensus Estimate has increased to $1.05 per share from 88 cents over the said time frame. For the current quarter, one analyst estimate moved north, compared to no southward movement in the last 60 days. The magnitude of estimate revision for the current quarter rose to 28 cents from 25 cents over the same time frame.

 

The market is upbeat about BioTelemetry’s strong top-line performance over the past few quarters. Notably, the last-reported second quarter marked the 20th consecutive quarter of year-over-year revenue growth. The company also registered growth across all segments. The expansion in adjusted operating margin is also encouraging.

The company’s consistent efforts in product innovation through research and development buoy optimism. In this regard we note that research and development expenses increased 27.9% in the second quarter of 2017.

Furthermore, BioTelemetry acquired LifeWatch AG in a deal valued at about $280 million in July. With this buyout, BioTelemetry enhanced its position in the wireless medicine space, expanding its product profile and customer base in the cardiac monitoring and diagnostic services space.

Management expects the acquisition to yield significant synergies over the next 12-18 months. Both companies manufacture products for monitoring cardiac care patients with precision.

The raised full-year 2017 revenue guidance is also encouraging. Post the acquisition of LifeWatch, BioTelemetry expects full-year 2017 revenues in the range of $285-$290 million. This guidance is way higher than the full-year 2016 reported revenue which was $208.3 million.

Other Key Picks

Some other top-ranked medical stocks are Edwards Lifesciences Corporation EW, Amedisys, Inc. AMED and IDEXX Laboratories, Inc. IDXX. While Edwards Lifesciences sports a Zacks Rank #1, Amedisys and IDEXX carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 19.5% over the last six months.

Amedisys has a long-term expected earnings growth rate of 18.2%. The stock has gained 3.5% over the last six months.

IDEXX has a long-term expected earnings growth rate of 19.8%. The stock has gained around 3.7% over the last six months.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


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
 
IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report
 
Edwards Lifesciences Corporation (EW): Free Stock Analysis Report
 
BioTelemetry, Inc. (BEAT): Free Stock Analysis Report
 
Amedisys Inc (AMED): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research