IBD Stock Analysis
- Cameco stock is back above a 19.81 buy point.
- Shares have also formed a high handle entry of 20.37.
- The relative strength line is hovering near recent highs.
Industry Group Ranking
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1:39PM EDT on
The first quarter represented a “return of the mojo,” Evercore ISI analyst Elizabeth Anderson said in a recent report to clients. Iqvia is a contract resource organization, meaning it helps biopharma companies design their clinical studies.
Even beyond Covid-related work, Iqvia outperformed expectations, she said. The technology and analytics solution business grew nearly 21% on a strict as-reported basis. Research and development solutions revenue soared close to 30%.
“These factors, along with the large step-up in (next 12 months) expected backlog conversion and the strong biotech funding environment, give us a high degree of confidence in continued strong performance,” she said.
Iqvia Stock: Strong Quarterly Report
The company’s first-quarter report was April 22. On that day, Iqvia stock popped 3.2%. Shares touched a high point at 237.47 on April 29, but have backed off slightly since then. The stock is now forming a four-weeks-tight pattern, according to MarketSmith.com. The buy point is 237.57, or 10 cents above the high in the pattern. Shares inched up to 231.59 in recent action.
Overall, revenue increased nearly 24% to $3.41 billion. Adjusted profit of $2.18 per share grew more than 45% year over year. Both measures put Iqvia stock well within the boundaries of CAN SLIM advice. Investors are encouraged to seek stocks with 25% or higher recent sales and earnings growth.
To that point, Iqvia stock has a strong Composite Rating of 97 out of a best-possible 99, according to IBD Digital. The CR is a measure of a stock’s technical and fundamental growth measures. This puts its shares in the top 3% of all stocks regardless of industry group.
Iqvia benefits from both the need for speedy Covid vaccine testing and pent-up demand for other clinical testing during the pandemic, Anderson says. Both should continue to benefit Iqvia after the pandemic ends.
Anderson raised her price target on Iqvia stock to 260 from 222. She has an outperform rating.
Second Quarter Could Improve
Deutsche Bank analyst George Hill was also bullish on Iqvia stock after its first-quarter report. Iqvia management expects strong demand for research and development, and outsourcing to continue beyond 2021. The second quarter could also be stronger than the first, Hill said in a note to clients.
“The robust biotech funding and all-time high pipeline paint an increasingly favorable outlook on the industry,” he said. “The pandemic has accelerated the adoption of new technology among many clients, creating a positive long-term trend for Iqvia’s differentiated offerings.”
For the second quarter, analysts polled by FactSet expect Iqvia’s sales to grow 29% and for earnings to surge 73%.
Hill has a buy rating on Iqvia stock.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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