The action across the market has been a roller coaster over the past two months. With the Fed setting up to raise rates again in December and little chance of a trade deal with China in the works before year-end, investors are looking for a port in the storm.
The healthcare logistics and supply space is an extremely interesting segment right now, and many of these stocks are acting well and heading higher even as the broader market suffers. Three names that may deserve your attention include: Stryker Corporation (NYSE:SYK), Innovest Global Inc (OTCMKTS:IVST), and Edwards Lifesciences Corp (NYSE:EW).
Stryker Corporation (NYSE:SYK) bills itself as a medical technology company. The company operates through three segments: Orthopaedics, MedSurg, and Neurotechnology and Spine.
The Orthopaedics segment provides implants for use in hip and knee joint replacements, and trauma and extremities surgeries. The MedSurg segment offers surgical equipment and surgical navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices, and other medical devices for use in various medical specialties.
The Neurotechnology and Spine segment provides neurotechnology products that include products used for minimally invasive endovascular techniques; products for brain and open skull based surgical procedures; orthobiologic and biosurgery products, such as synthetic bone grafts and vertebral augmentation products; and minimally invasive products for the treatment of acute ischemic and hemorrhagic stroke. It also provides spinal implant products comprising cervical, thoracolumbar, and interbody systems for use in spinal injury, deformity, and degenerative therapies.
In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($2.2B against $4.2B, respectively).
The company sells its products to doctors, hospitals, and other healthcare facilities through company-owned sales subsidiaries and branches, as well as third-party dealers and distributors in approximately 85 countries. Stryker Corporation was founded in 1941 and is headquartered in Kalamazoo, Michigan.
Stryker Corporation (NYSE:SYK) pulled in sales of $3.2B in its last reported quarterly financials, representing top line growth of 7.9%.
Innovest Global Inc (OTCMKTS:IVST) is the more speculative name on our list.
The company has a diversified approach, and has industrial, biotech, medical supply, and other interests. The reason we like it here is twofold: first, because the company just closed a four-year contract extension providing safety supplies to the University Hospital and Case Medical Center administration buildings in Cleveland, Ohio.
That’s a big deal for this small conglomerate holding. In addition, the company has $390K in cash sitting on the balance sheet, so it can fund some action as it pursues a strong growth curve.
In straight terms, Innovest Global utilizes novel technology and marketing to efficiently acquire customers.
The company’s primary growth strategy is to acquire existing companies in a select few industries, and attract new customers in cost effective ways. Currently, it has a Commercial & Industrial Division, and a Biotechnology & Health Services Division.
The company recently took a strong stake in StemVax Therapeutics, a Translational Biotechnology Company that develops novel therapies for brain tumor patients. The company focuses its efforts on developing immunotherapeutic approaches to treating patients with Glioblastoma Multiforme (GBM), a devastating brain cancer.
The company also focuses its research efforts on novel drug development to target Cancer Stem cells and other multi-resistant cancer cells. It seeks to “make a difference in patient’s lives. Bringing new beginnings to the market by developing novel therapeutics. Dr. Dwain Morris-Irvin, President of Innovest’s Biotech division is the StemVax founder and Chief Science Officer.”
Cedars-Sinai Medical Center is a non-profit hospital and academic health science center located in Los Angeles, California. They employ over 2,000 physicians and are considered one of the top hospitals and research organizations in the world. Dr. Irvin previously was one of their key contributors in the areas of research that he founded StemVax to pursue.
Innovest Global Inc (OTCMKTS:IVST) generated sales of $1.1M, according to information released in the company’s most recent quarterly financial report.
Edwards Lifesciences Corp (NYSE:EW) trumpets itself as a company that provides products and technologies to treat structural heart disease and critically ill patients in the United States and internationally.
It offers transcatheter heart valve therapy products comprising transcatheter aortic heart valves and related delivery systems for the nonsurgical replacement of heart valves.
The company also provides surgical heart valve therapy products, such as pericardial valves for aortic and mitral surgical valve replacement; aortic heart valves; annuloplasty rings and the beating-heart mitral repair systems; and cardiac cannula devices, as well as various procedure-enabling platforms to advance minimally invasive surgery.
In addition, it offers critical care products, such as hemodynamic monitoring systems to measure a patient’s heart function in surgical and intensive care settings; pulmonary artery catheters; Oximetry Central Venous catheters, as well as clinical monitoring platforms that display a patient’s physiological status; and disposable pressure monitoring devices and closed blood sampling systems to protect patients and clinicians from infection.
The company distributes its products through direct sales force and independent distributors. Edwards Lifesciences Corporation was founded in 1999 and is headquartered in Irvine, California.
Earning a current market cap value of $34.03B, EW has a significant war chest ($1.6B) of cash on the books, which is balanced by about $1.3B in total current liabilities. EW is pulling in trailing 12-month revenues of $3.6B. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 10.4%.
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