Here's Why You Should Invest In Haemonetics (HAE) Stock Now

Haemonetics Corporation (NYSE:HAE) is enjoying investors’ rising optimism, courtesy of the NexSys PCS plasmapheresis system.

The company has outperformed the industry in the past year. The stock has improved 24.1% compared with the industry’s 5.9% rise and the S&P 500 composite’s 4% increase.

This renowned global provider of blood management solutions to customers encompassing blood and plasma collectors as well as hospitals has a market cap of $5.84 billion. The company has an earnings growth rate of 13.5% for the next three to five years.

Banking on solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Potential Upsides of Plasma Franchise: Throughout fiscal 2019, the company’s plasma franchise continued to witness strong growth driven primarily by robust demand for disposables in North America. In the region, the company registered double-digit revenue growth from the year-ago period. The company is progressing well with the development and launch of NexSys PCS plasmapheresis system.

Huge Potential of Hemostasis Management Franchise: Under Hospital business, Hemostasis Management is witnessing strong growth of late. In May 2019, Haemonetics received FDA clearance to expand the medical indication of its TEG 6s Hemostasis Analyzer System for use in adult trauma settings.

Strong Balance Sheet: Haemonetics exited fiscal 2019 with cash and cash equivalents of $169.4 million compared with $154.9 million at the end of third-quarter fiscal 2019. For the fiscal, the company generated operating cash flow of $159.3 million compared with $220.4 million a year ago. This indicates promising return to shareholders.

Which Way are Estimates Treading?

For the first quarter of fiscal 2020, the Zacks Consensus Estimate for earnings is pegged at 63 cents, which indicates 6.8% fall from the year-ago quarter’s figure. The same for revenues is pegged at $238.5 million, calling for year-over-year growth of 3.9%.

For 2019, the Zacks Consensus Estimate for earnings is pegged at $2.9, suggesting 22.6% year-over-year growth. The same for revenues is pegged at $1.01 billion, indicating 4.2% rise from the prior-year quarter’s level.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Cerner Corporation (NASDAQ:CERN) , Penumbra (NYSE:PEN) and Bruker Corporation (NASDAQ:BRKR) . Each of these stocks carry a Zacks Rank #2.

Cerner’s long-term earnings growth rate is expected to be 13.5%.

Penumbra’s long-term earnings growth rate is projected at 21.5%.

Bruker’s long-term earnings growth rate is estimated at 11.7%.

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