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Chicago, Illinois-based GE HealthCare Technologies Inc. (GEHC) develops, manufactures, and markets products, services, and complementary digital solutions used in diagnosing, treating, and monitoring patients. Valued at $39.5 billion by market cap, the leading global medical technology company offers imaging, ultrasound, maternal, ventilator, and patient monitoring equipment, as well as performance management, cybersecurity, technical training, site planning, integrated asset optimization, and clinical network solutions.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and GEHC perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the healthcare information services industry. GEHC reinforces its market leadership through its iconic brand and dominance in imaging and ultrasound technologies. Built on a legacy of quality and reliability and approximately half its revenue generated from servicing, pharmaceutical diagnostics, and digital solutions, GEHC enjoys financial stability, enabling strategic investments in innovation and long-term growth.
Despite its notable strength, GEHC has slipped 8.3% from its 52-week high of $94.50, achieved on Mar. 8. Over the past three months, GEHC stock has gained 13.3%, outperforming the Health Care Select Sector SPDR Fund’s (XLV) 7.8% gains during the same time frame.
In the longer term, shares of GEHC rose 12.1% on a YTD basis, underperforming XLV’s YTD gains of 15.3%. However, GEHC shares climbed 30.4% over the past 52 weeks, outperforming XLV’s 19% returns over the same time frame.
To confirm the bullish trend, GEHC has been trading above its 50-day and 200-day moving averages since early July, with slight fluctuations.
GEHC’s performance is boosted by choosing Amazon Web Services (AWS) as its strategic cloud provider for healthcare transformation with GenAI. The collaboration includes developing purpose-built foundation models and generative AI applications to enhance medical diagnostics and patient care. GEHC plans to utilize AWS' ML and GenAI capabilities to build versatile models for the future of healthcare using Amazon Bedrock.
On Sep. 13, GEHC shares fell more than 1% after holder Morgan Stanley (MS) offered 10 million shares in a secondary underwritten public offering.
Additionally, on Jul. 31, GEHC shares closed up more than 2% after reporting its Q2 results. Its adjusted EPS of $1 surpassed Wall Street expectations of $0.98. The company’s revenue was $4.8 billion, falling short of Wall Street forecasts of $4.9 billion.
GEHC’s top rival, Koninklijke Philips N.V. (PHG), has taken the lead over GEHC, delivering 32.8% returns on a YTD basis and solid 44.6% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on GEHC’s prospects. The stock has a consensus “Moderate Buy” rating from the 18 analysts covering it, and the mean price target of $95.53 suggests a potential upside of 10.3% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
