GEHC Stock Declines Despite Expansion in Precision Care Capabilities
GE HealthCare acquired MIM Software in 2024.
The latest move is expected to be a significant milestone for GE HealthCare with respect to delivering precision care through advanced digital solutions. This, in turn, is likely to boost its Molecular Imaging & Computed Tomography (CT) business and strengthen its foothold in the niche space.
Following the announcement, shares of the company lost nearly 1.6% till Friday's trading.
Historically, the company has gained a high level of synergies from its partnerships. Although the latest announcement is likely to be beneficial for GEHC's top-line growth going forward, the stock declined overall.
GE HealthCare currently has a market capitalization of $33.08 billion. It has an earnings yield of 5.6%, better than the industry's 0.5%. In the last reported quarter, GEHC delivered an earnings surprise of 10.9%.
Per GE HealthCare, its first combined software release with MIM Encore will likely aid in enhancing digital imaging and workflow solutions across oncology, cardiology and neurology. MIM Encore, now equipped with additional GE HealthCare features and algorithms, is expected to deliver an integrated reporting experience for both positron emission tomography (PET) and SPECT (single-photon emission CT) imaging.
Also, GE HealthCare's Effortless Workflow seamlessly integrates with MIM Encore, enabling clinicians to manage rising caseloads with intuitive interfaces, customizable displays and automation that can help bridge experience gaps and reduce burnout.
Per a report by Grand View Research, the global molecular imaging market was valued at $8.8 billion in 2024 and is anticipated to witness a CAGR of 4.6% between 2025 and 2030. Factors like the increasing prevalence of chronic diseases, such as cancer, the therapeutic sectors, and the development of hybrid imaging systems are likely to drive the market.
Given the market potential, the latest advancement in precision care is expected to provide a significant boost to GE HealthCare's business.
This month, GE HealthCare and PT Kalbe Farma Tbk (Kalbe) have officially inaugurated Indonesia's first production facility dedicated to manufacturing technologically advanced CT scanners.
Last month, GE HealthCare announced that the NCCN Clinical Practice Guidelines in Oncology (NCCN Guidelines) for clinicians now recommend considering fluoroestradiol (FES) PET for systemic staging in patients with recurrent or metastatic lobular breast cancer.
The same month, GE HealthCare received the FDA's 510(k) clearance for its Aurora nuclear medicine system and Clarify DL.
Shares of the company have lost 6.8% in the past year against the industry's 10.1% rise and the S&P 500's gain of 9.4%.
Image Source: Zacks Investment Research
Currently, GEHC carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader medical space are Hims & Hers Health, Inc. HIMS, Cencora, Inc. COR and Integer Holdings Corporation ITGR.
Hims & Hers, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 36.5%. HIMS's earnings surpassed estimates in two of the trailing four quarters, missed once and broke even in the other, the average surprise being 19.6%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Hims & Hers' shares have surged 129.7% compared with the industry's 36.1% gain in the past year.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.8%. COR's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6%.
Cencora has rallied 25.9% against the industry's 16% decline in the past year.
Integer Holdings, sporting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 18.4%. ITGR's earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.
Integer Holdings' shares have gained 0.9% against the industry's 14.2% decline in the past year.
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