3 Growth Stocks Under $10 That Analysts Predict Will Skyrocket

GE HealthCare Technologies GEHC recently announced the receipt of FDA clearance for its SIGNA MAGNUS, a 3.0T high-performance, head-only magnetic resonance imaging (MRI) scanner.

This new innovative system has the potential to help detect neurological, oncological and psychiatric conditions by providing new clinical imaging and neuroscience capabilities. With SIGNA MAGNUS, GEHC is likely to provide neuroradiologists and neuroscience researchers with a tool that supports advanced imaging and biomarker research.

Likely Trend of GEHC Stock Following the News

Following the announcement, shares of the company moved nearly 0.8% south to $84.18 at yesterday’s close. However, in the year-to-date period, GEHC shares have rallied 8.8% compared with the industry’s 14.5% growth. The S&P 500 increased 26% in the same time frame.

Meanwhile, GEHC currently has a market capitalization of $38.8 billion. It has an earnings yield of 5.1%, which is much higher than the industry’s yield of 1.2%. In the last reported quarter, GEHC delivered an earnings surprise of 7.6%.

More on the Features & Benefits of GEHC’s SIGNA MAGNUS 3.0T MRI System

The asymmetrical design of the SIGNA MAGNUS 3.0T MRI System shifts the gradient isocenter to the patient edge of the coil rather than its geometric center, enabling patient head access and avoiding shoulder width constraints. This head-only design allows MAGNUS to deliver a gradient amplitude and slew rate far surpassing those of conventional 60cm or 70cm bore whole-body MRI systems, marking a significant advancement in MRI technology for neuroimaging applications.

Shorter scan periods and ultra-high anatomical resolution are made possible by the SIGNA MAGNUS system's improved capabilities. Through developments like Oscillating Gradient Diffusion Encoding, it is possible to observe brain function, microstructure and microvasculature, a capability that can be crucial for neurological oncology.

GEHC intends to use SIGNA MAGNUS' high-gradient performance to enable sophisticated research scanning, including slow cerebral spinal fluid flow measurement, high B-value diffusion imaging and fMRI for examining the blood oxygen level-dependent response. This is likely to be one of the revolutionary advancements in the field of neuroscience research.

SIGNA MAGNUS is likely to be available for both forward production and upgrades from compatible SIGNA Premier systems. The existing facilities can upgrade to this advanced technology, expanding access to high-performance imaging without the need for entirely new systems, additional power or cooling.

More on the HyperG Gradient Technology

With the introduction of HyperG gradients, one of the most effective gradient coils available in the SIGNA MAGNUS system, GE HealthCare demonstrated leadership in high-performance gradient technology. The HyperG gradient coil's new asymmetric head-only design maximizes the system's gradient performance for clinical and research scanning by causing substantially less peripheral nerve stimulation.

The HyperG gradient technology enables faster image acquisition using the same power requirement as the whole-body SIGNA Premier 3.0T system. Improved gradient strengths lead to enhanced spatial resolution and image clarity. This can result in accurate diagnoses, allowing healthcare providers to detect subtle abnormalities and provide better treatment options.

Favorable Industry Prospects for GEHC

Per a report by Future Market Insight, the global brain imaging and neuroimaging market was estimated to be $13.7 billion in 2023 and is anticipated to surpass $22.4 billion by 2033 at a CAGR of 5.1%.

The brain imaging and neuroimaging market is driven by the rising incidence and prevalence of neurological disorders, increased awareness of neurodegenerative diseases, an increase in traumatic brain injuries and increased applications of brain imaging and neuroimaging in clinical trials.

Given the market potential, the latest FDA clearance of the SIGNA MAGNUS 3.0T MRI System is likely to provide a boost to GEHC’s imaging business.

GEHC’s Recent Developments in Imaging Space

In October, GEHC completed the acquisition of Intelligent Ultrasound Group PLC’s clinical artificial intelligence (AI) software business. This transaction is aimed at improving GEHC’s AI-driven image analysis tools, which are designed to make ultrasound diagnosis smarter and more efficient by enhancing image recognition and streamlining workflows.

In September, GEHC’s MIM Software announced the receipt of FDA clearance for performing Centiloid scaling for positron emission tomography (PET)-based amyloid imaging analysis and quantification. With MIMneuro, a vendor-neutral solution, this new Centiloid scale tool is likely to be able to assist physicians in more accurately determining the density of amyloid plaque in a patient's brain. Amyloid PET radiotracers help visualize amyloid plaque density in patients evaluated for Alzheimer’s disease.

GE HealthCare’s Zacks Rank & Stocks to Consider

GEHC carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are AngioDynamics ANGO, Quest Diagnostics DGX and RadNet RDNT. Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 19.2% year to date against the industry’s6.1% growth.

Quest Diagnostics has an estimated long-term growth rate of 6.8%. DGX's earnings surpassed estimates in each of the trailing four quarters, with an average surprise being 3.3%.

Quest Diagnostics has gained 42% year to date compared with the industry's 14.9% growth.

RadNet’s earnings surpassed estimates in the trailing four quarters, the average surprise being 98.2%.

RDNT shares have risen 93.7% year to date compared with the industry’s 14.8% growth.

Zacks Investment Research

HealthEquity, Inc. HQY has been gaining from its business model and strategy. The optimism, led by a solid second-quarter fiscal 2025 performance and strength in Health Savings Accounts (“HSA"), is expected to contribute further. However, stiff competition and the possibility of the integration of acquisitions being unsuccessful are major downsides.

So far this year, the Zacks Rank #3 (Hold) stock has gained 43% against 5.6% decline of the industry.The S&P 500 has increased 26% during the said time frame.

The renowned provider of technology-enabled services platforms for healthcare savings and spending decisions has a market capitalization of $8.75 billion. The company projects 28.2% growth for the next five years and expects to witness continued improvements in its business. HealthEquity’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.76%.

Let’s delve deeper.

Business Model and Strategy: We are optimistic about HealthEquity’s business model, which is based on a business-to-business-to-consumer distribution strategy. The company believes that there are significant opportunities to expand the scope of services that it provides to its current clients. Per HealthEquity’s management, it has a diverse distribution footprint to attract new clients and network partners. Its sales force calls on enterprise and regional employers in industries across the United States as well as potential Network Partners from among health plans, benefits administrators and retirement plan record keepers.

Strength in HSA: During the second quarter of fiscal 2025, despite inflationary challenges, HealthEquity experienced solid growth in HSA balances, driven by a significant increase in invested assets, which now represent a larger portion of total HSA assets.HealthEquity’s total number of HSAs, as of July 31, 2024, rose 15% year over year. The company reported 711,000 HSAs with investments as of July 31, 2024, up 24% year over year. Total accounts, as of July 31, 2024, rose 9% year over year. This uptick included total HSAs and 6.9 million other consumer-directed benefits (CDB). Total HSA assets at the end of July 31, 2024, rose 27% year over year. This included HSA cash and investments.

Strong Q2 Results: HealthEquity saw solid top and bottom-line performances in second-quarter fiscal 2025. Solid growth in HSAs also drove the top line. The solid uptick in total HSA assets in the reported quarter is promising. The expansion of both margins also bodes well.

The growing number of members choosing to invest in HSAs reflects a positive trend. Additionally, more members are selecting enhanced rates on HSA cash, leading to improved and more consistent custodial yields.

HealthEquity has raised its revenue and earnings guidance for fiscal 2025 on its second-quarter earnings call, signaling confidence in its ongoing growth trajectory.

Downsides

Integration of Acquisitions Might be Unsuccessful: The success of HealthEquity’s recent acquisitions depends partly on its ability to realize the anticipated business opportunities by combining the operations of the acquired businesses with its own in an efficient and effective manner. The integration of HealthEquity’s acquisitions could take longer and be costlier than anticipated. It could result in the disruption of the company’s ongoing as well as acquired businesses and harm its financial performance.

Stiff Competition: HealthEquity faces stiff competition in the rapidly evolving and fragmented medical services market. The company’s success, to a substantial extent, depends on consumers' willingness to increase their use of HSAs and other CDBs as well as its ability to increase engagement and demonstrate the value of its services to the existing and potential clients.

Estimate Trend

HealthEquity has been witnessing a positive estimate revision trend for fiscal 2025. Over the past 60 days, the Zacks Consensus Estimate for earnings per share has moved 0.3% north to $3.09.

The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $290.5 million, implying a 16.6% rise from the year-ago reported number. The consensus mark for earnings per share (EPS) is pinned at 71 cents, implying an 18.3% improvement.

HealthEquity, Inc. Price

HealthEquity, Inc. price | HealthEquity, Inc. Quote

Key Picks

Some better-ranked stocks from the medical industry are Masimo MASI, AngioDynamics ANGO and Globus Medical GMED.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 10.4% for 2025. You can seethe complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Masimo’s shares have risen 37.2% year to date compared with the industry’s 6.7% growth.

AngioDynamics, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 38.2% for 2025. ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 8.9% year to date against the industry’s 6.7% growth.

Globus Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 56.5% year to date compared with the industry’s 6.7% growth.

Zacks Investment Research

Cardinal Health CAH recently announced that it has entered into definitive agreements to acquire two companies. These agreements are likely to accelerate Cardinal Health's strategic growth areas along with enhancing patient care.

CAH is likely to acquire a majority stake in GI Alliance (“GIA”), along with acquiring the Advanced Diabetes Supply Group (“ADSG”). GIA is the country's leading gastroenterology management services organization (“MSO”), from a combination of GIA physician owners and funds managed by affiliates of Apollo. ADSG is one of the country's leading diabetic medical supplies providers.

Likely Trend of CAH Stock Following the News

Following the announcement, shares of the company moved nearly 1.5% north to $123.51 at yesterday’s closing. In the year-to-date period, CAH’s shares have gained 22.5% compared with the industry’s 5.8% growth. The S&P 500 has increased 26.3% in the same time frame.

Meanwhile, CAH currently has a market capitalization of $29.44 billion. It has an earnings yield of 6.36%, higher than the industry’s yield of 5.28%. In the last reported quarter, CAH delivered an earnings surprise of 14.63%.

More on CAH’s Strategic Acquisitions

Owing to the acquisition, CAH is likely to strengthen its multi-specialty business as GIA is likely to operate as a platform within its Pharmaceutical and Specialty Solutions segment. GI Alliance's leading national MSO platform includes more than 900 physicians across 345 practice locations in 20 states, with extensive reach into the local communities it serve. GIA supports a complete continuum of gastroenterology care across its member sites, with significant additional depth in anesthesiology, pathology, infusion, radiology and clinical research.

GI Alliance operates a multi-specialty platform that will further expand both nationally and in other key therapeutic areas. This will also build upon the technology and specialty practice capabilities acquired by Cardinal Health in the previously announced acquisitions of Specialty Networks (urology, GI, rheumatology) and Integrated Oncology Network (medical oncology, radiation oncology, urology).

Meanwhile, the acquisition of ADSG is likely to boost CAH’s at-Home Solutions business. In line with Cardinal Health's at-Home Solutions strategy to support the rapidly growing diabetic patients, ADSG provides comprehensive diabetes solutions that are customized to support individual patients at home. ADSG serves approximately 500,000 patients annually by providing the latest innovations in diabetes therapies from leading manufacturers.

CAH’s Capital Deployment Plans & Transactional Details

Cardinal Health is likely to purchase its majority stake in GIA for approximately $2.8 billion in cash, which will represent 71% ownership. Meanwhile, ADSG is set to be acquired by CAH for approximately $1.1 billion in cash. The company expects both acquisitions to close in early calendar year 2025, subject to customary closing conditions, including the receipt of required regulatory approvals. CAH also entered into an agreement with Bank of America for the letter of commitment to provide an unsecured bridge term loan facility to fund the acquisitions.

The two transactions are expected to grow Cardinal Health's revenues, segment profit and adjusted earnings per share in the first 12 months following the closure. The company expects to reflect the transactions in its fiscal year 2025 guidance upon closing.

More on CAH’s Other Recent Acquisitions

In September, CAH announced an agreement to acquire Integrated Oncology Network (“ION”) for $1.115 billion in cash. This planned acquisition underscored Cardinal Health’s strategic focus on expanding its presence in specialty care, particularly oncology.

By integrating ION into its portfolio, Cardinal Health strengthens its support for independent community oncology practices, empowering the company to remain autonomous while accessing advanced services and technology. This deal not only enhances Cardinal Health’s oncology service offerings but also accelerates its mission to drive value-based, patient-centered care and ancillary services.

In January, CAH announced its acquisition of Specialty Networks, a technology-enabled multi-specialty group purchasing and practice enhancement organization, for $1.2 billion in cash. This acquisition was indicative of Cardinal Health's strategic focus on investing to boost the company's Specialty business and supply cutting-edge personnel, capabilities and technology that meet important demands for both its customers and the business.

CAH’s Zacks Rank & Other Stocks to Consider

CAH presently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader medical space are AngioDynamics ANGO, Quest Diagnostics DGX and RadNet RDNT. Each stock presently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 19.2% year to date against the industry’s6.1% growth.

Quest Diagnostics has an estimated long-term growth rate of 6.8%. DGX's earnings surpassed estimates in each of the trailing four quarters, with an average surprise being 3.3%.

Quest Diagnostics has gained 42% year to date compared with the industry's 14.9% growth.

RadNet’s earnings surpassed estimates in the trailing four quarters, the average surprise being 98.2%.

RDNT shares have risen 93.7% year to date compared with the industry’s 14.8% growth.

Zacks Investment Research