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Chicago, Illinois-based GE HealthCare Technologies Inc. (GEHC) develops, manufactures, and markets products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients. Valued at $36.7 billion by market cap, the 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 medical devices industry. GEHC solidifies its position as a market leader through its renowned brand and expertise in imaging and ultrasound technologies. With a strong emphasis on quality and reliability, as well as a significant portion of its revenue coming from servicing, pharmaceutical diagnostics, and digital solutions, GEHC maintains financial stability that supports ongoing investments in innovation and sustainable growth.
Despite its notable strength, GEHC slipped 16.2% from its 52-week high of $94.55, achieved on Sep. 27. Over the past three months, GEHC stock has declined 8.7%, underperforming the iShares U.S. Medical Devices ETF’s (IHI) marginal gains during the same time frame.
In the longer term, shares of GEHC rose 2.5% on a YTD basis and climbed 5.7% over the past 52 weeks, underperforming IHI’s YTD gains of 10.1% and 12.5% returns over the last year.
To confirm the bearish trend, GEHC is trading below its 50-day moving average since late October, with slight fluctuations. The stock has been trading below its 200-day moving average since mid-November.
On Oct. 30, GEHC shares closed up more than 2% after reporting its Q3 results. Its adjusted EPS of $1.14 topped Wall Street expectations of $1.06. The company’s revenue was $4.9 billion, meeting Wall Street forecasts. GEHC expects full-year adjusted EPS to be between $4.25 and $4.35.
In the competitive arena of medical devices, Koninklijke Philips N.V. (PHG) has taken the lead over GEHC, showing resilience with a 7.2% uptick on a YTD basis and solid 14.4% 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 $97.56 suggests a potential upside of 23.1% from current price levels.
