Integer Holdings Gains 34.4% in One Year: What's Driving the Stock?

Integer Holdings ITGR witnessed strong momentum in the past year. Shares of the company have gained 34.4% compared with the 4.2% rise of the industryin the same time frame. The S&P 500 Composite has risen 25.6% during the same period.With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.Plano, TX-based Integer Holdings manufactures and develops medical devices and components primarily for original equipment manufacturers.In November, ITGR announced the completion of the previously announced sale of its Electrochem business to Ultralife Corporation for $50 million in cash. Following the divestiture transaction, Integer Holdings is now completely a medical technology company with additional cash to pay down debt and execute its inorganic growth strategy.Image Source: Zacks Investment ResearchFactors Favoring ITGR’s GrowthInteger Holdings is witnessing an upward trend in its stock price, prompted by its execution of manufacturing excellence initiatives, an improved supply chain, and a complete focus on the medical segment following the divestiture. The optimism led by a solid third-quarter 2024 performance and its strength in Medical sales are expected to contribute further.Investors showed optimism about Integer Holdings' recent facility expansions in Ireland. In September, ITGR completed an 80,000 sq. ft. expansion of its guidewire manufacturing facility in New Ross, County Wexford. This development enhances the company’s capacity and unique capabilities, enabling faster product launches and supporting customer innovation. The announcement bolstered investor confidence in the company’s growth prospects.Integer Holdings exited the third quarter of 2024 with impressive results. The strong year-over-year top-line and bottom-line performances were impressive. Robust performances by the Medical segment and strength in all the product lines of the Medical segment were encouraging. These factors must have aided in surging the stock price.Integer Holdings reported a gross profit of $116.6 million in the third quarter, marking an 11% year-over-year increase. The gross margin improved 56 basis points (bps) to 27%. Adjusted operating profit rose to $75.6 million, a 17.1% increase from the third quarter of 2023, with the adjusted operating margin expanding 125 bps to 17.5%. The improvement in both margins has positively impacted the stock, contributing to its price increase.Factors That May Offset ITGR’s GainsInteger Holdings relies on a steady supply of raw materials and third-party manufacturers for its products. Fluctuations in raw material costs due to transportation issues, government regulations, or price controls could hurt the company’s profits if these costs cannot be offset through higher prices or savings. Additionally, disruptions in the supply chains of third-party manufacturers could delay or impact the company’s ability to produce its products, posing risks to profitability and timely delivery.A Look at EstimatesInteger Holdings’earnings per share (EPS) in 2024 and 2025 are expected to grow 14.1% and 12.8% to $5.33 and $6.01 on a year-over-year basis, respectively. The Zacks Consensus Estimate for EPS has decreased 1 cent for 2024 and 2 cents for 2025 in the past 30 days.Revenues for 2024 and 2025 are anticipated to rise 7.8% and 7.4% to $1.72 billion and $1.85 billion, respectively, on a year-over-year basis.Stocks to ConsiderSome better-ranked stocks in the broader medical space are Masimo MASI, Accuray ARAY and Abbott Laboratories ABT.Masimo, carying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 11.8% 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%. Its shares have risen 31.7% against the industry’s 1% decline in the past six months.Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.ARAY’s shares have gained 8.8% against the industry’s 1% decline in the past six months.Abbott, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 10% for 2025. It delivered a trailing four-quarter average earnings surprise of 1.64%.ABT’s shares have risen 8.5% in the past six months compared with the industry’s 7.2% growth.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abbott Laboratories (ABT): Free Stock Analysis Report Accuray Incorporated (ARAY): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report Integer Holdings Corporation (ITGR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks