Dj Masimo Corporation, Inst Holders, 3Q 2024 (Masi)

Cardinal Health CAH recently launched the Kendall SCD SmartFlow Compression System in the United States. The system is the next generation of the Kendall Compression Series, offering an enhanced clinician and patient experience.

Kendall SCD SmartFlow Compression System is designed to help prevent venous thromboembolism events, enhance blood circulation and treat pain and swelling related to venous stasis.

Likely Trend of CAH Stock Following the News

Following the announcement, shares of the company moved moved 2.8% north to $123.42 at yesterday’s closing. In the year-to-date period, CAH shares have gained 22.4% compared with the industry’s 3.6% growth. The S&P 500 increased 24.5% in the same time frame.

Meanwhile, CAH currently has a market capitalization of $29.1 billion. In the last reported quarter, CAH delivered an earnings surprise of 14.6%.

More on CAH’s Kendall SCD SmartFlow Compression System

Venous stasis is a condition where blood pools in the veins, often in the legs, and can lead to chronic venous insufficiency and ulcers.

The Kendall SCD SmartFlow Compression System moves more blood per hour than uniform compression by utilizing Vascular Refill Detection (VRD) technology in conjunction with a sequential, gradient, and circumferential sleeve design. The VRD technology helps patients obtain more compression cycles over time and eventually reduces stasis by tailoring and adjusting compression cycles to each patient's specific vascular refill time. While the gradient pressure pattern optimizes blood flow, the circumferential sleeve design permits therapy to be administered regardless of sleeve and tubing position.

Other clinical advantages and features of VRD technology include the exclusive Patient Sensing Technology, which automatically determines whether compression therapy is being administered and will sound an alert if the system fails to identify a patient present or the proper application of the sleeves on the patient's legs.

CAH’s Kendall SCD SmartFlow Compression System is now available for health systems in the United States and is likely to be offered internationally in early 2025.

CAH’s Recent Notable Developments

This month, CAH announced that it had entered into definitive agreements to acquire two companies. CAH is set to acquire a majority stake in GI Alliance (“GIA”) and Advanced Diabetes Supply Group (“ADSG”). GIA is the country's leading gastroenterology management services organization, a combination of GIA physician owners and funds managed by Apollo affiliates. ADSG is one of the country's leading diabetic medical supplies providers.

Also, this month, CAH reported its first-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.88. The bottom line also improved 9.3% year over year. The company raised its fiscal 2025 earnings guidance. The company anticipates adjusted EPS between $7.75 and $7.90, up from the previous guidance of $7.55-$7.70. Revenues from the Medical segment are estimated to grow in the range of 3-5%.

Favorable Industry Prospects for CAH

Per a report by Future Market Insights, the global venous ulcer treatment market size was valued at $2.96 billion in 2023 and is expected to reach more than $7.61 billion at a CAGR of 6.5% from 2024 to 2033.

The venous disease treatment market is experiencing significant growth, driven by an increasing prevalence of venous disorders such as varicose veins, chronic venous insufficiency, and deep vein thrombosis. Factors such as the aging population, sedentary lifestyles, and rising awareness of venous health are propelling demand for effective treatment options.

CAH’s Zacks Rank & Other Stocks to Consider

CAH carries a Zacks Rank #2 (Buy) at present.

Some other top-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 see the 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 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.

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DexCom DXCM, a leader in glucose biosensing systems, has announced a strategic partnership with OURA, the developer of a leading smart ring technology. The collaboration is aimed at revolutionizing metabolic health management by integrating DexCom's glucose biosensor data with the biometric insights provided by the Oura Ring. The partnership will enable two-way data flow between DexCom glucose biosensors and apps and Oura Ring and the Oura App, and co-marketing efforts will help OURA and Dexcom reach millions of new users seeking better metabolic health.

The companies will also co-market and cross-sell each other’s products. The first app integration resulting from the partnership is expected to be launched in the first half of 2025.

DexCom is also funding a $75 million strategic investment in OURA’s Series D funding, valuing Oura at over $5 billion.

DexCom’s shares have lost 39.9% in the year-to-date period against 3.9% growth of the industry. The S&P 500 composite has risen 24.5% during the said time frame.

Strategic Goals and Vision

The partnership focuses on delivering a more comprehensive picture of metabolic health. By combining glucose data with information on vital sign, sleep, stress, heart health and activity data collected by the Oura Ring, users can better understand how lifestyle choices impact their glucose levels. This integration promises to help individuals make informed decisions regarding diet, exercise and overall well-being.

DexCom believes that this powerful combination will attract new shared customers who want to better understand the link between activity, sleep, nutrition and glucose levels.

Technological Synergy

Dexcom’s continuous glucose monitoring (CGM) systems, known for their accuracy, have already transformed diabetes management. Their recent product, Stelo, launched in August, is a groundbreaking over-the-counter glucose biosensor, broadening accessibility beyond prescription-only users.

The Oura Ring tracks vital metrics, including sleep quality, activity levels, heart rate and stress. Its recently introduced "Meals" feature allows users to track the timing and impact of their food intake, aligning well with metabolic health goals. With more than 2.5 million units sold, OURA has established itself as a significant player in the wearable health tech market.

The two-way data integration between Dexcom and OURA products will enable users to correlate glucose levels with lifestyle behaviors. It will allow users to analyze how specific foods or activities impact their glucose and adjust their routines accordingly. Personalized insights will ensure the recommendations are tailored to individual responses, recognizing that people react differently to the same foods and activities.

Dexcom’s $75 million investment underscores this collaboration's financial and strategic importance. Oura expects to double its annual sales to $500 million in 2024, showcasing the growing demand for its innovative solutions.

Industry Prospects

Per a report by MarketsandMarkets, the global digital diabetes management market size was valued at approximately $18.9 billion in 2023 and is expected to reach $35.8 billion by 2028 at a growth rate of 13.6%.

The market is being driven by escalating diabetes care solutions and technological developments that have made it possible to introduce highly adaptable solutions. Other significant drivers include the increasing popularity of connected devices and apps as well as the growing adoption of cloud-based solutions.

The partnership addresses a critical health challenge. Almost 88% of Americans are not in optimal metabolic health, increasing their risk of conditions like diabetes and heart disease. By combining Dexcom’s medical-grade biosensors with Oura’s advanced software, this collaboration aims to set a new standard in health monitoring, thereby driving potential for both companies.

DexCom, Inc. Price

DexCom, Inc. price | DexCom, Inc. Quote

Recent Developments

Last month, DexCom concluded the third quarter of 2024 on a positive note, with earnings and revenues surpassing estimates. Key drivers included significant contributions from the Sensor segment and robust domestic and international revenue growth. The expansion of coverage for CGM systems during the quarter further supported growth, a trend expected to continue throughout 2024. The introduction of sensors like G6 and G7 in international markets also fueled revenue growth.

DXCM’s Zacks Rank & Stocks to Consider

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

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 see the 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

Cencora, Inc. COR witnessed strong momentum in the year-to-date period. Shares of the company have rallied 19.7% against 8.9% decline of the industry. The S&P 500 composite has risen 24.5% during the same time frame.

With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.

Chesterbrook, PA-based Cencora is one of the world’s largest pharmaceutical service companies. It focuses on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes. The company is well-positioned to deliver long-term sustainable growth on the back of its diverse and inclusive teams.

Factors Favoring COR’s Growth

The rally in the company’s share price can be attributed to the robust growth in the company’s U.S. Healthcare Solutions segment. The optimism, led by a solid fourth-quarter fiscal 2024 performance and robust business potential, is expected to contribute further.

Cencora exited the fiscal fourth quarter on a strong note, wherein its earnings and revenues beat the Zacks Consensus Estimate. The company continues to witness a robust segmental performance due to growth in all markets and strong demand for specialty products and GLP-1 drugs. Per management, Cencora delivered a solid performance by playing a crucial role in the healthcare system while maintaining efficiency throughout its business. The company has been focused on its priorities and thoughtful capital deployments to deliver long-term growth.

During its fourth-quarter fiscal 2024 earnings release, COR announced that it has entered a definitive agreement to acquire Retina Consultants of America, a leading management services organization of retina specialists. This acquisition should boost the company’s presence in the retina treatment space.

For fiscal 2025, adjusted earnings per share (EPS) are estimated to be in the range of $14.80-$15.10, indicating growth of 8-10% from the prior-year level. Revenues are projected to rise 7-9%. Revenues at the U.S. Healthcare Solutions segment and the International Healthcare solutions business are estimated to increase 7-9%. Adjusted operating income is expected to improve 5-6.5%.

Cencora is an ideal partner for manufacturers looking to launch their products. This is due to its extensive worldwide distribution network and global platform of commercialization services. Thanks to its growing presence in the pharmaceutical industry, Cencora can establish partnerships with pharmaceutical companies at an early stage of product development and market itself as an integrated partner capable of assisting in the successful commercialization of its products (in addition to providing logistics and distribution services). These factors are likely to have favored the stock’s growth.

Risk Factors

COR’s gross margin continues to be hurt by lower-margin GLP-1 drugs and lack of exclusive COVID-19 therapy sales, which had higher gross profit margins. The company’s rising expenses to support business activities amid inflationary challenges put pressure on the operating margin. Cut-throat competition in the MedTech space is another headwind.

Cencora, Inc. Price

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A Look at Estimates

COR’s earnings per share for fiscal 2025 and 2026 are projected to grow 8.1% and 9.5%, respectively, to $14.88 and $16.209 on a year-over-year basis. The Zacks Consensus Estimate for EPS has risen 0.9% for 2025 and 1.2% for 2026 in the past 30 days.

Revenues for fiscal 2025 and 2026 are anticipated to rise 7.3% and 6.7%, respectively, to $315.26 billion and $336.52 billion on a year-over-year basis.

Key Picks

Some other top-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 see the 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 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.

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.

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