Stock of the Day

January 14, 2022

IQVIA (IQV)

$190.94
-$3.08 (-1.6%)
Market Cap: $34.17B

About IQVIA

IQVIA Holdings Inc. engages in the provision of advanced analytics, technology solutions, and clinical research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. It operates through three segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions segment offers a range of cloud-based applications and related implementation services; real world solutions that enable life sciences and provider customers to generate and disseminate evidence, which informs health care decision making and improves patients' outcomes; and strategic and implementation consulting services, such as advanced analytics and commercial processes outsourcing services. This segment also provides country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity across various channels, including retail, hospital, and mail order; and measurement of sales or prescribing activity at the regional, zip code, and individual prescriber level. The Research & Development Solutions segment offers project management and clinical monitoring; clinical trial support; strategic planning and design services; and patient and site centric solutions, as well as central laboratory, genomic, bioanalytical, ADME, discovery, and vaccine and biomarker laboratory services. The Contract Sales & Medical Solutions segment provides health care provider and patient engagement services, and scientific strategy and medical affairs services. It serves pharmaceutical, biotechnology, device and diagnostic, and consumer health companies. The company has a collaboration with argenx SE. The company was formerly known as Quintiles IMS Holdings, Inc. and changed its name to IQVIA Holdings Inc. in November 2017. The company is headquartered in Durham, North Carolina.

IQVIA Bull Case

Here are some ways that investors could benefit from investing in IQVIA Holdings Inc.:

  • Recent analyst ratings indicate strong confidence in the stock, with seventeen analysts issuing a buy rating and a consensus target price of $251.22, suggesting potential for price appreciation.
  • The current stock price is $193.27, which is significantly lower than the 12-month high of $261.73, indicating a potential buying opportunity for investors looking for value.
  • IQVIA Holdings Inc. has demonstrated solid financial performance, with a return on equity of 28.81%, indicating effective management and profitability relative to shareholder equity.
  • The company operates in a growing sector, providing advanced analytics and technology solutions to the life sciences industry, which is expected to expand as healthcare demands increase globally.
  • Insider ownership stands at 1.60%, which can be a positive indicator as it suggests that those with the most knowledge about the company have a vested interest in its success.

IQVIA Bear Case

Investors should be bearish about investing in IQVIA Holdings Inc. for these reasons:

  • The company recently reported earnings of $2.90 per share, missing analysts' consensus estimates of $3.11, which may raise concerns about its ability to meet future expectations.
  • IQVIA Holdings Inc. has a relatively high debt-to-equity ratio of 2.12, indicating that the company is heavily financed by debt, which could pose risks if market conditions change.
  • Despite a strong market position, the stock has experienced volatility, with a beta of 1.48, suggesting that it may be more sensitive to market fluctuations compared to the overall market.
  • Recent price target adjustments by analysts, including reductions from firms like TD Cowen and UBS Group, may signal a lack of confidence in the stock's near-term performance.
  • The current ratio of 0.84 indicates that the company may have liquidity issues, as it suggests that current liabilities exceed current assets, which could impact its operational flexibility.

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