GEHC Stock Gains Following Cardiology Solutions Portfolio Expansion

GE HealthCare Technologies Inc. GEHC, on Monday, announced the launch of the AltiX AI.i edition of Mac-Lab, CardioLab and ComboLab. The AltiX AI.i edition are expected to enhance efficiency and precision care for multiple types of cardiac procedures.

The latest launch is expected to significantly strengthen GE HealthCare’s CardioVascular & Interventional Solutions unit, thus boosting its Advanced Visualization Solutions (AVS) business.

Likely Trend of GEHC Stock Following the News

Following the announcement, shares of the company gained nearly 0.5% till yesterday’s trading.

Historically, the company has gained a top-line boost from its various product innovations. We expect market sentiment on the stock to remain positive around this announcement, too.

GE HealthCare currently has a market capitalization of $37.68 billion. It has an earnings yield of 5.7%, favorable than the industry’s 0.4%. In the last reported quarter, GEHC delivered an earnings surprise of 15.1%.

Significance of GE HealthCare’s Latest Launch

Per GE HealthCare, cardiovascular disease (CVD) has nearly doubled over the past three decades, affecting more than 500 million people worldwide. During this period, both deaths and disabilities due to CVD have been on the rise globally. With an increasing number of cardiac cases, there is an urgent need for tools that improve the efficiency of cardiac catheterization (cath) and electrophysiology (EP) procedures. Management believes that efficient diagnosis and therapy are crucial elements in addressing the increasing demand for care.

GE HealthCare’s management believes that the AltiX AI.i editions have been designed to improve the user experience, elevate workflow in the cardiac cath lab and support complex EP procedures. These latest editions will likely offer new features that can streamline workflow and enhance interoperability while adhering to cybersecurity standards.

Industry Prospects in Favor of GEHC

Per a report by Data Bridge Market Research, the global interventional cardiology market was estimated to be $14.61 billion in 2022 and is anticipated to reach $23.61 billion by 2030 at a CAGR of 7.1%. Factors like technological advancements and the rising prevalence of CVD are likely to drive the market.

Given the market potential, the latest product availability is expected to provide a significant boost to GE HealthCare’s business.

GE HealthCare’s Notable Development

Last month, GE HealthCare reported its fourth-quarter 2024 results, wherein it recorded an uptick in its top line on both a reported and organic basis. Per management, this was partly driven by its AVS business.

GEHC’s Share Price Performance

Shares of the company have lost 10.2% in the past year against the industry’s 10.1% rise and the S&P 500’s gain of 8.8%.

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GE HealthCare’s Zacks Rank & Key Picks

Currently, GEHC carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Cardinal Health, Inc. CAH, Cencora, Inc. COR and Boston Scientific Corporation BSX.

Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.5%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cardinal Health’s shares have gained 17.6% against the industry's 3.6% decline in the past year.

Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.1%. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 4.9%.

Cencora has gained 9.4% against the industry's 17.9% decline in the past year.

Boston Scientific, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.3%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.3%.

Boston Scientific’s shares have rallied 49.7% compared with the industry’s 10.1% growth in the past year.

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