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Here's Why You Should Invest in Integer (ITGR) Stock Now

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Integer Holdings Corporation (ITGR - Free Report) is currently one of the top-performing stocks in the MedTech space. The company’s strong focus on portfolio management and operational excellence is likely to drive growth. The company is also likely to gain from Cardio & Vascular, Neuromodulation and Non-Medical Electrochem markets.

Which Way Are the Estimates Treading?

For the current quarter, the Zacks Consensus Estimate for earnings is pegged at 92 cents per share, reflecting growth of 12.2% on a year-over-year basis. The same for the revenues is pegged at $292 million.

For 2018, the Zacks Consensus Estimate for revenues is pegged at $1.24 billion. The same for adjusted earnings for 2018 is pegged at $3.57, reflecting an increase of 27.1%.

The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Here we take a quick look at the primary factors that have been boosting Integer Holdings stock.

Integer Holdings Corporation Price and Consensus

Shares Shine Bright

Over the past year, Integer Holdings has outperformed the industry in terms of price. The stock has surged 71.7%, against the industry's decline of 4.4%. Moreover, the current level is higher than the S&P 500 index's gain of 17.4%.

 

What’s Boosting the Stock?

Strong Quarterly Performance

Integer Holdings ended the second quarter on a favorable note, beating the Zacks Consensus Estimate for earnings. A strong guidance instills investors’ optimism.

The company reported adjusted earnings of $1.06 per share in the second quarter of 2018, up 43% year over year. Revenues rose 12% year over year to $314 million on a reported basis and missed the Zacks Consensus Estimate of $382 million. Notably, adjusted sales from continuing operations were $313 million.

Sales grew on a reported and adjusted basis, courtesy of solid performances by the Cardio and Vascular business.

Sale of AS&O

The growth trajectory for Integer Holdings’ Advanced Surgical and Orthopaedics unit (AS&O) has been strong. However, in a bid to strengthen the core unit, the company signed an agreement to divest the segment to MedPlast, LLC for $600 million. Management expects this deal to unlock significant value.

By the end of the second quarter of 2018, management at Integer Holdings announced that as a direct result of this divestiture, the company raised its full-year guidance by $0.15 to $3.35-$3.65 per share.

Guidance

Adjusted earnings per share (EPS) are projected in the range of $3.35-$3.65, up from the previous guidance of $3.20-$3.50. This reflects growth of 9-19% year over year.

Adjusted sales are anticipated between $1.18 billion and $1.20 billion, indicating growth of 4-6%. The current guidance is significantly higher than the previous guidance of $1.51 billion to $1.55 billion.

Adjusted EBIDTA is expected between $255 million and $265 million, reflecting an improvement of 9-13%.

Want More from the MedTech Space?

A few other top-ranked stocks in the MedTech space are Penumbra, Inc. (PEN - Free Report) , Illumina, Inc. (ILMN - Free Report) and Patterson Companies, Inc. (PDCO - Free Report) . Patterson Companies carries a Zacks Rank #2 (Buy). Penumbra and Illumina sport a Zacks Rank #1.

Penumbra has a long-term expected earnings growth rate of 20%, while the same for Illumina and Patterson Companies is pinned at 22.1% and 8.3%, respectively.

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New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

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