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Here's Why You Should Hold on to IQVIA (IQV) Stock for Now

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Shares of IQVIA Holdings Inc. (IQV - Free Report) have risen 15% over the past year, outperforming the 12.1% growth of the industry it belongs to.

The company has an expected long-term (three to five years) EPS growth rate of 10.9%. Its earnings for 2024 and 2025 are anticipated to grow 8.4% and 12.5%, respectively, year over year.

Factors That Bode Well

IQV’s extensive data collection, comprising more than one billion patient records and 61 petabytes of proprietary data from 150,000 suppliers, sets it apart and creates a high entry barrier for competitors. Covering around 90% of global pharmaceuticals, IQVIA leverages sophisticated analytics and a global tech infrastructure to standardize, organize and integrate this data, building a strong client base.

IQVIA's robust capabilities position it strongly in the life sciences market. With a powerful healthcare IT infrastructure, analytics-driven clinical development, a robust real-world solutions ecosystem, and proprietary clinical and commercial applications, the company excels in building and retaining relationships with healthcare stakeholders. Its combined research, development and commercial services have fostered trusted relationships, resulting in a diversified client base of more than 10,000 clients in more than 100 countries.

IQV’s addressable market size exceeds $330 billion, constituting outsourced research and development, real-world evidence and technology-enabled clinical and commercial operations. By leveraging its data, advanced analytics, technology and expertise, IQVIA aims to innovate and expand its market presence.

IQV has consistently repurchased shares totaling $0.99 billion in 2023, $1.17 billion in 2022 and $0.41 billion in 2021. These initiatives boost investor confidence and positively impact earnings per share.

Some Risks

IQVIA is experiencing rising operating expenses, with a 1% year-over-year increase in 2023. As a result, the bottom line is likely to remain under pressure moving forward. The company's global presence creates vulnerability to foreign currency exchange rate fluctuations. In 2023, around 30% of the company's total revenues were earned in 60 different currencies outside the United States.

Zacks Rank

IQV currently carries a Zacks Rank #3 (Hold).

Stocks to Consider

A couple of better-ranked stocks are Aptiv (APTV - Free Report) and DocuSign (DOCU - Free Report) ).

APTV carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 20.7%.

The company has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 12.18%. Shares of Aptiv have risen 3.6% in the past three months.

DOCU currently sports a Zacks Rank #1 (Strong Buy). It has a long-term earnings growth expectation of 13.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered an earnings surprise of 23.7%, on average, surpassing the Zacks Consensus Estimate in three of the trailing four quarters and missing once. Shares of DocuSign have risen 10.7% in the past three months.


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