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IQVIA Holdings (IQV) Stock Up 2.3% Year to Date: Here's Why

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Shares of IQVIA Holdings Inc. (IQV - Free Report) have gained 2.3% on a year-to-date basis.

 

Let’s delve into the factors, which have contributed to the company’s price performance.

Upbeat 2020 Guidance

IQVIA raised its full-year guidance. The company now projects adjusted earnings between $6.10 and $6.30, compared with the prior guidance of $5.75 and $6.10 per share. The current Zacks Consensus Estimate of $6.15 lies within the updated guidance.

Revenues are now expected in the range of $11-$11.1 billion, compared with the prior guidance of $10.6-$10.9 billion. The current Zacks Consensus Estimate of $11.05 billion lies within the updated guidance.

Adjusted EBITDA is now anticipated between $2,295 million and $2,345 million compared with the prior-guided range of $2,200-$2,300 million.

Consecutive Earnings & Revenue Beat

IQVIA Holdings came up with better-than-expected earnings and revenue performance in all four quarters of 2019 as well as in the first two quarters of 2020.

Solid Technological Suite

IQVIA Holdings is gaining momentum from its solid technological suite. The company offers an extensive range of technology solutions in the form of cloud-based applications and related services. Its Software-as-a-Service (“SaaS”) solution supports a vast range of clinical and commercial processes. By combining its database, healthcare expertise and therapeutic information collected from over 100 countries, the company creates its Global Market Insight offerings such as MIDAS, Analytics Link and Disease Insights.

All these solutions and services are used by healthcare and pharmaceutical companies to organize, enhance and implement their clinical and commercial strategies in a coordinated manner. It continues to secure notable awards and deals for its tech offerings from both new and old clients.

Growth Opportunities in Emerging Markets

IQVIA Holdings serves the life-sciences industry (a major part of the global healthcare system) with the help of advanced analytics, technology solutions and contract-research services. With its increasing presence in emerging markets, IQVIA Holdings should benefit from the evolving growth opportunities in the industry. Notably, IQVIA Institute estimates spending on pharmaceuticals in emerging markets to expand at a CAGR of 5% to 8% through 2023.

On the back of an expanding global healthcare system, the company is also hopeful of witnessing multiple acquisition opportunities across the industry. Life sciences organizations are also expected to commercialize their operations in emerging markets just as they did in developed markets.

Zacks Rank & Other Stocks to Consider

Currently, IQVIA Holdings carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Business Services sector are Republic Services (RSG - Free Report) , ICF International (ICFI - Free Report) and CoreLogic , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The long-term expected-earnings per share (three to five years) growth rate for Republic Services, ICF International and CoreLogic is 6.6%, 10% and 12%, respectively.

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