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Durham, North Carolina-based IQVIA Holdings Inc. (IQV) provides healthcare research services. Valued at $36.1 billion by market cap, the company offers analytics, technology solutions, and clinical research services to the life sciences industry which helps them in the clinical development and commercialization of medical treatments that improve healthcare outcomes for patients.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and IQV perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the diagnostics & research industry. The merger of Quintiles and IMS Health created the robust platform IQVIA Connected Intelligence, utilizing high-quality health data and healthcare-grade AI for unparalleled insights. With strong revenue growth and a global presence in over 100 countries, IQVIA's expertise and scale provide a competitive edge that is hard to replicate.
Despite its notable strength, IQV slipped 24.7% from its 52-week high of $261.73, achieved on Mar. 8. Over the past three months, IQV stock dipped 17.7%, considerably underperforming the Nasdaq Composite’s ($NASX)14.7% gains during the same time frame.
In the longer term, shares of IQV declined 14.8% on a YTD basis and fell 13.1% over the past 52 weeks, considerably underperforming NASX’s YTD gains of 34.4% and 36.2% returns over the last year.
To confirm the bearish trend, IQV has traded below its 200-day moving average since early October, with minor fluctuations. The stock has been trading below its 50-day moving average since late September.
IQVIA has been struggling to keep up in the rapidly changing healthcare market, facing tough competition in the data analytics industry. Additionally, the company experienced setbacks due to delays in two of its major trials, contributing to its recent underperformance in the market.
On Oct. 31, IQV shares closed down more than 4% after reporting its Q3 results. Its adjusted EPS of $2.84 topped Wall Street expectations of $2.81. The company’s revenue was $3.90 billion, beating Wall Street forecasts of $3.85 billion. IQVIA expects full-year adjusted EPS in the range of $11.10 to $11.20, and revenue to be between $15.35 billion and $15.40 billion.
In the competitive arena of diagnostics & research, Agilent Technologies, Inc. (A) has taken the lead over IQV, showing resilience with a 1% loss on a YTD basis and marginal gains over the past 52 weeks.
Wall Street analysts are bullish on IQV’s prospects. The stock has a consensus “Strong Buy” rating from the 21 analysts covering it, and the mean price target of $249.82 suggests a potential upside of 26.8% from current price levels.
