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Haemonetics Banks on Solid Plasma & Haemonetics Management


On Aug 9, we issued an updated research report on Haemonetics Corporation HAE, a Braintree, MA-based leading provider of blood management solutions to customers encompassing blood and plasma collectors, hospitals and health care providers globally. The stock currently carries a Zacks Rank #2 (Buy).

For the past six months, Haemonetics has been trading above the broader industry. Over this period, the stock has rallied 12.3% compared with the broader industry’s 9.9%.

Haemonetics exited first-quarter fiscal 2018 on a mixed note, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Despite the encouraging growth in the Plasma and Haemonetics Management franchises, the underperformance at BloodCenter franchisee was quite a dampener.

Meanwhile, the company’s strong cash position boosts investors’ confidence. Also, the year-over-year increase in reported sales and gross margin buoys optimism. The company swung to operating income in the first quarter of fiscal 2018 from losses in the year-ago quarter. Haemonetics is also optimistic about strong market adoption of its NexSys PCS plasmapheresis system which recently received FDA approval.

On the flip side, over the last three months, Haemonetics’ valuation looks stretched in terms of price-to-earnings ratio (P/E – F12M) when compared to its own industry. Also, Haemonetics has been consistently witnessing sluggish revenue growth at its Blood Center franchise. Further, macroeconomic uncertainty continues to pose a challenge. Moreover, a stiff competitive landscape adds to the woes.

Other Key Picks

Other top-ranked medical stocks are Edwards Lifesciences Corporation EW, Myriad Genetics, Inc. MYGN and Align Technology, Inc. ALGN. Notably, Edwards Lifesciences and Align Technology sport a Zacks Rank #1 (Strong Buy), while Myriad Genetics carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has an expected long-term adjusted earnings growth of almost 27.9%. The stock has added roughly 26.7% over the last three months.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has gained around 5.5% over the last three months.

Myriad Genetics has a long-term expected earnings growth rate of 13.8%. The stock has added roughly 26.9% over the last three months.

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