On July 8, Zacks Investment Research upgraded
MWI Veterinary Supply, Inc.
) to a Zacks Rank #2 (Buy) from Zacks Rank #3 (Hold) primarily due
to inherent strengths backed by solid fundamentals.
Why the Upgrade?
MWI Vet has been witnessing rising earnings estimates on the back
of strong second-quarter fiscal 2014 results. Moreover, this
Idaho-based animal health products distributor delivered positive
earnings surprises in 3 of the last 4 quarters with an average beat
of 3.4%. The stock currently has long-term earnings growth
expectation of 15.8%.
One of the key initiatives MWI Vet plans to follow during fiscal
year 2014 includes constant implementation of warehouse management
system in the remaining distribution centers. This in turn is
expected to improve customer service in a cost-effective way for
the company, apart from possible expansion of profitability.
Despite the U.S. veterinary market being highly competitive and
fragmented, MWI Vet continues to emphasize on new sales regions.
Moreover, over the long run, the company expects first-rate
business on the back of its inventory management, ecommerce sales,
pharmacy fulfillment programs and placement of Micro's technology
Per management, the strategic acquisition of the IVESCO assets is
expected to boost the company's foothold in the production animal
market, where it will now offer an enhanced product portfolio with
improved supply chain performance.
The company expects fiscal 2014 EPS in the range of $5.47-$5.67,
reflecting year-over-year growth of 10.5% to 14.5%. Management also
expects revenue growth for the fiscal year 2014 in the range of 23%
to 25%, which translates into revenues of $2.89-$2.94 billion.
Other Stocks to Consider
In the Medical/Dental-Supply space,
Becton, Dickinson and Company
Bio-Reference Laboratories Inc.
) are also performing well. All these stocks hold a Zacks Rank #2
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MWI VET SUPPLY (MWIV): Free Stock Analysis
BECTON DICKINSO (BDX): Free Stock Analysis
AMERISOURCEBRGN (ABC): Free Stock Analysis
BIO REFERNC LAB (BRLI): Free Stock Analysis
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