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Here's Why You Should Buy Varian Medical (VAR) Stock Now
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Varian Medical Systems, Inc. is expected to benefit from solid fiscal first-quarter results and a slew of positive developments.
The stock currently has a Zacks Rank #2 (Buy).
Shares Up
Over the past year, shares of Varian Medical have rallied 11.5% compared with the S&P 500 index’s 3.5% gain.
What’s Favoring the Stock?
Fiscal Q1 Results
Varian Medical’s first-quarter fiscal 2019 adjusted earnings of $1.06 per share were on par with the Zacks Consensus Estimate. Adjusted earnings were flat with the year-ago quarter.
Revenues totaled $741 million, which outpaced the consensus mark of $717.9 million. On a year-over-year basis, revenues rose 9.2% and 10% at constant currency.
The company has kept the guidance intact.
Notably, for fiscal 2019, year-over-year revenue growth is expected in the range of $3.06-$3.15 billion, up 5-8%. The Zacks Consensus Estimate is pegged at $4.70, much above the expected range.
Adjusted operating earnings, as a percentage of revenues, is projected in the band of 17-18%.
Adjusted net earnings per share are expected in the range of $4.60 to $4.75.
Cash flow from operations is expected in the band of $460-$510 million.
Developments
The California-based MedTech giant has seen a series of developments in recent times.
Last month, Varian Medical-equipped Danish Center for Particle Therapy officially opened at the Aarhus University Hospital in Aarhus, Denmark.
Moreover, Varian is equipping Nigeria’s NSIA-LUTH Cancer Treatment Centre with one Halcyon treatment system and two VitalBeam radiotherapy systems. This fortifies the company’s foothold in emerging economies.
In January, the company announced the installation of the gantry for the Varian ProBeam Compact single-room proton therapy system at the new oncology center at Biopolis, an international biomedical research hub in Singapore. (Read More: Varian Medical's ProBeam Compact Picked by Biopolis)
Which Way Are Estimates Headed?
For the fiscal second quarter, the Zacks Consensus Estimate for earnings is pegged at $1.16, reflecting a year-over-year increase of 0.9%. The same for revenues is pinned at $779.1 million, showing an increase of 6.7% year over year.
For fiscal 2019, the Zacks Consensus Estimate for revenues is at $3.12 billion, reflecting a rise of 7% year over year. The same for earnings shows growth of 6.3% year over year.
Other top-ranked stocks in the broader medical space are Abbott Laboratories (ABT - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Surmodics, Inc. (SRDX - Free Report) .
Abbott’s long-term earnings growth rate is projected at 11.7%. The stock has a Zacks Rank #2.
Merit Medical’s long-term earnings growth rate is projected at 13%. The stock has a Zacks Rank #2.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Image: Bigstock
Here's Why You Should Buy Varian Medical (VAR) Stock Now
Varian Medical Systems, Inc. is expected to benefit from solid fiscal first-quarter results and a slew of positive developments.
The stock currently has a Zacks Rank #2 (Buy).
Shares Up
Over the past year, shares of Varian Medical have rallied 11.5% compared with the S&P 500 index’s 3.5% gain.
What’s Favoring the Stock?
Fiscal Q1 Results
Varian Medical’s first-quarter fiscal 2019 adjusted earnings of $1.06 per share were on par with the Zacks Consensus Estimate. Adjusted earnings were flat with the year-ago quarter.
Revenues totaled $741 million, which outpaced the consensus mark of $717.9 million. On a year-over-year basis, revenues rose 9.2% and 10% at constant currency.
The company has kept the guidance intact.
Notably, for fiscal 2019, year-over-year revenue growth is expected in the range of $3.06-$3.15 billion, up 5-8%. The Zacks Consensus Estimate is pegged at $4.70, much above the expected range.
Adjusted operating earnings, as a percentage of revenues, is projected in the band of 17-18%.
Adjusted net earnings per share are expected in the range of $4.60 to $4.75.
Cash flow from operations is expected in the band of $460-$510 million.
Developments
The California-based MedTech giant has seen a series of developments in recent times.
Last month, Varian Medical-equipped Danish Center for Particle Therapy officially opened at the Aarhus University Hospital in Aarhus, Denmark.
Moreover, Varian is equipping Nigeria’s NSIA-LUTH Cancer Treatment Centre with one Halcyon treatment system and two VitalBeam radiotherapy systems. This fortifies the company’s foothold in emerging economies.
In January, the company announced the installation of the gantry for the Varian ProBeam Compact single-room proton therapy system at the new oncology center at Biopolis, an international biomedical research hub in Singapore. (Read More: Varian Medical's ProBeam Compact Picked by Biopolis)
Which Way Are Estimates Headed?
For the fiscal second quarter, the Zacks Consensus Estimate for earnings is pegged at $1.16, reflecting a year-over-year increase of 0.9%. The same for revenues is pinned at $779.1 million, showing an increase of 6.7% year over year.
For fiscal 2019, the Zacks Consensus Estimate for revenues is at $3.12 billion, reflecting a rise of 7% year over year. The same for earnings shows growth of 6.3% year over year.
Varian Medical Systems, Inc. Price and Consensus
Varian Medical Systems, Inc. Price and Consensus | Varian Medical Systems, Inc. Quote
Other Key Picks
Other top-ranked stocks in the broader medical space are Abbott Laboratories (ABT - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Surmodics, Inc. (SRDX - Free Report) .
Abbott’s long-term earnings growth rate is projected at 11.7%. The stock has a Zacks Rank #2.
Merit Medical’s long-term earnings growth rate is projected at 13%. The stock has a Zacks Rank #2.
Surmodics’ long-term earnings growth rate is expected to be 10%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>