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3 Healthcare Stocks On The Move After Raising Guidance

Friday, April 23, 2021 | Thomas Hughes
3 Healthcare Stocks On The Move After Raising Guidance

Healthcare Is Big Business  

Whether your interest is pharma, direct care, or the life sciences industry as a whole you have to admit that healthcare is big business. We spend trillions of dollars annually on care, drugs, services, and equipment and that money is flowing right now. The company's on our list today represent three facets of the industry and are all poised for big gains in 2021.

Biogen Is On The Cusp Of A Revenue Rebound

Biogen (NASDAQ: BIIB) reported a better than expected quarter and raised its guidance but that isn’t what has us warming up to the stock. Biogen revenue has been coming under pressure due to the erosion of income in several key drug lines but that is about to change. While the erosion of revenue from drugs like Tecfidera and Rituxan is expected to continue, a new drug is on the verge of FDA approval. Aducanumab is a drug for the treatment of Alzheimer’s and expected to get the OK by early June. If so, the company is expecting to see a small but positive impact on earnings this year and a more substantial boost next. In addition, the company is seeking approval in other countries as well. 

Shares of the stock fell after the release of Q1 results because they were little more than what the market expected. While the $2.69 billion in revenue beat the consensus it was a slim 150 basis point margin and still down 24% from last year. Likewise, the boost to guidance only affected earnings and is still only in line with the consensus. In our view, it is the upcoming approval of aducanumab that has the market’s attention and what will drive this stock higher. Early approval or an overly positive review of the drug could send this stock back up to the $340 level. 

Three Healthcare Stocks On The Move After Raising Guidance

HCA Healthcare Moves Up On Rising Demand, Earnings Leverage 

HCA Healthcare (NYSE: HCA) owns and operates healthcare facilities nationwide. The company is not only seeing an increase in demand that is exceeding all expectations but is guiding for significant cost-leverage as well. The company beat the top and bottom line Q1 targets with ease which leads us to believe the new guidance is still cautious. Regardless, the new range for revenue has the consensus below the midpoint, and earnings are now expected well above the previous range so there should be a round of analysts upgrades to drive this stock higher if nothing else. 

Shares of the stock surged on the news gaining more than 3.5% at the high of the da. The new high is an all-time high and one confirmed by bullishness in the indicators so we see this thing moving even higher. There may be a pullback in prices near term but probably not more than enough to close the price gap formed post-earnings release. Beyond that, we see this stock moving up into the $220 range by early summer. 

Three Healthcare Stocks On The Move After Raising Guidance

IQVIA Pops On Earnings And Outlook 

IQVIA Holdings (NYSE: IQVIA) is an interesting play on the health care industry because it is a healthcare-business services company and not directly involved with med-tech or health. The company operates in several segments globally and seeing a high demand for its offerings in all markets. The company reported a 24% increase in net revenue driven by strength in Research & Development Solutions. The R&D segment saw its revenues grow 29% with an 18% increase in backlogs to sustain growth in future quarters. 

As for the guidance, the company upped its full-year guidance to a range of $13.2 to $13.5 billion in revenue and $8.50 to $8.75 in earnings and both ranges are well above the consensus. Shares of the stock are up more than 4% on the news and gaining momentum on the daily, weekly, and monthly charts. 

“We expect demand for our differentiated clinical and commercial offerings will continue to grow beyond 2021, on top of an increasingly favorable outlook for the life sciences industry,” said chairman/ CEO Ari Bousbib

Three Healthcare Stocks On The Move After Raising Guidance

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Biogen (BIIB)1.7$274.02-1.6%N/A9.07Hold$305.57
HCA Healthcare (HCA)2.5$204.11-1.3%0.94%20.64Buy$203.79
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