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Varian (VAR) Eclipse Software Tops in International Studies
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Palo Alto, CA-based leading manufacturer of medical devices and software, Varian Medical Systems, Inc. recently announced that its Eclipse treatment planning software has topped in two competitive international plan studies. These are the 2017 TransTasman Radiation Oncology Group (TROG)/ProKnow Stereotactic Body Radiation Therapy (SBRT) Spine Plan Study and the 2017 Sun Nuclear QA and Dosimetry Symposium (QADS)/ProKnow Head and Neck Plan Study.
Stock Performance
In the last three months, the price performance of Varian was disappointing. The stock gained a meager 0.50%, comparing unfavorably with the Zacks classified Medical Instruments sub-industry’s stellar gain of 7.11%. Also, the current level is way below the S&P 500’s return of 5.53% over the same time frame.
The estimate revision trend for the stock has been tepid as well. For the full year, three analysts moved their estimates south over the last two months, while there was no movement in the opposite direction. As a result, the Zacks Consensus Estimate for the full year plunged 22.3% to $3.83, over the same time frame. Notably, the stock has Zacks Rank #5 (Strong Sell).
Coming back to the news, the Eclipse treatment planning software is in use at some 4,100 cancer treatment centers around the world. The software creates an optimized radiotherapy treatment plan based on a physician's dose instruction, and information on the size, shape and location of the tumor to be treated with radiation.
With the recognition from the two studies, we feel the Eclipse software would greatly increase the company’s market share. In the TROG/ProKnow SBRT Spine Plan Study, 19 out of the 20 top scoring plans used Eclipse.
Of late, Varian has been gaining prominence on the back of its solid oncology business prospects. We note that the company addresses both tier 1 and mid-tier markets with its Edge, Truebeam and VitalBeam products.
Separately, Varian recently won a competitive bid to provide advanced radiotherapy technology and the Eclipse treatment planning system to six major hospitals in Shanghai.
We are particularly upbeat about Varian’s recent takeover of the Medical Imaging business of PerkinElmer. Considering the bountiful opportunities for diagnostic imaging in the global space, this development is a significant positive for long-term growth.
On the flipside, increasing local competition is a primary headwind. Moreover, the Imaging Components’ business spin-off will remain an overhang on the stock, at least in the near term.
Key Picks
Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Fluidigm Corporation . Notably, Inogen and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy) while Fluidigm carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock registered an impressive one-year return of 70.6%.
IDEXX Laboratories has a long-term expected earnings growth rate of 15.04%. Additionally, the stock returned an impressive 97.5% over the last one year.
Fluidigm has a long-term expected earnings growth rate of 25%. The stock delivered a positive earnings surprise of 1.6% last quarter.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Varian (VAR) Eclipse Software Tops in International Studies
Palo Alto, CA-based leading manufacturer of medical devices and software, Varian Medical Systems, Inc. recently announced that its Eclipse treatment planning software has topped in two competitive international plan studies. These are the 2017 TransTasman Radiation Oncology Group (TROG)/ProKnow Stereotactic Body Radiation Therapy (SBRT) Spine Plan Study and the 2017 Sun Nuclear QA and Dosimetry Symposium (QADS)/ProKnow Head and Neck Plan Study.
Stock Performance
In the last three months, the price performance of Varian was disappointing. The stock gained a meager 0.50%, comparing unfavorably with the Zacks classified Medical Instruments sub-industry’s stellar gain of 7.11%. Also, the current level is way below the S&P 500’s return of 5.53% over the same time frame.
The estimate revision trend for the stock has been tepid as well. For the full year, three analysts moved their estimates south over the last two months, while there was no movement in the opposite direction. As a result, the Zacks Consensus Estimate for the full year plunged 22.3% to $3.83, over the same time frame. Notably, the stock has Zacks Rank #5 (Strong Sell).
Coming back to the news, the Eclipse treatment planning software is in use at some 4,100 cancer treatment centers around the world. The software creates an optimized radiotherapy treatment plan based on a physician's dose instruction, and information on the size, shape and location of the tumor to be treated with radiation.
With the recognition from the two studies, we feel the Eclipse software would greatly increase the company’s market share. In the TROG/ProKnow SBRT Spine Plan Study, 19 out of the 20 top scoring plans used Eclipse.
Of late, Varian has been gaining prominence on the back of its solid oncology business prospects. We note that the company addresses both tier 1 and mid-tier markets with its Edge, Truebeam and VitalBeam products.
Separately, Varian recently won a competitive bid to provide advanced radiotherapy technology and the Eclipse treatment planning system to six major hospitals in Shanghai.
We are particularly upbeat about Varian’s recent takeover of the Medical Imaging business of PerkinElmer. Considering the bountiful opportunities for diagnostic imaging in the global space, this development is a significant positive for long-term growth.
On the flipside, increasing local competition is a primary headwind. Moreover, the Imaging Components’ business spin-off will remain an overhang on the stock, at least in the near term.
Key Picks
Better-ranked stocks in the broader medical sector include Inogen Inc. (INGN - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Fluidigm Corporation . Notably, Inogen and IDEXX Laboratories sport a Zacks Rank #1 (Strong Buy) while Fluidigm carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock registered an impressive one-year return of 70.6%.
IDEXX Laboratories has a long-term expected earnings growth rate of 15.04%. Additionally, the stock returned an impressive 97.5% over the last one year.
Fluidigm has a long-term expected earnings growth rate of 25%. The stock delivered a positive earnings surprise of 1.6% last quarter.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>