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Based in Durham, North Carolina, IQVIA Holdings Inc. (IQV) engages in the provision of advanced analytics, technology solutions, and clinical research services to the life sciences industry. Valued at a market cap of $42.9 billion, the company focuses on helping healthcare clients serve their patients in a better way by bringing in updated and innovative ideas in the process of clinical development and commercialization, as well as speed innovation.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and IQVIA Holdings fits right into that category. With approximately 86,000 employees, the company conducts operations in more than 100 countries and is renowned for its innovations in healthcare.
Despite a 9.2% decline from its 52-week high of $261.73 reached on Mar. 8, shares of this diagnostics and research company have gained 9.3% over the past three months, surpassing the S&P 500 Index’s ($SPX) 3.3% return over the same time frame.
However, in the long term, IQV stock is up 2.7% on a YTD basis, lagging behind SPX’s 16.4% gains. Shares of IQV have gained 9.6% over the past 52 weeks, underperforming SPX’s 23.8% return over the same time frame.
Nevertheless, since early July, IQV has been trading above its 200-day and 50-day moving averages, indicating a bullish price trend.
IQVIA has underperformed over the past year due to rising operating expenses, foreign currency exchange rate fluctuations affecting a significant portion of its revenues, and increased competition in the outsourced research and development sector.
However, IQV surged 9.2% on Jul. 22 due to raising its full-year profit forecast, driven by stronger-than-expected demand for its healthcare data and analytics services and a positive performance in its Technological and Analytical Solutions unit. Additionally, the company reported better-than-expected Q2 results, with revenue of $3.8 billion and adjusted EPS of $2.64, boosting investor confidence.
IQV has outpaced its rival, Agilent Technologies, Inc.’s (A) 1.4% decline on a YTD basis but has lagged behind A’s 21.6% return over the past 52 weeks.
Despite IQV’s underperformance relative to the broader market over the past year, analysts remain optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 21 analysts covering the stock, and the mean price target of $273.25 suggests a 15.1% premium to its current levels.
On the date of publication, Sohini Mondal 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.
