On Aug 14, Zacks Investment Research upgraded
) to a Zacks Rank #1 (Strong Buy).
CREE INC (CREE): Free Stock Analysis Report
GREATBATCH INC (GB): Free Stock Analysis
MEDTRONIC (MDT): Free Stock Analysis Report
ST JUDE MEDICAL (STJ): Free Stock Analysis
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Why the Upgrade?
Greatbatch has been witnessing rising estimates on the back of
strong second-quarter results and higher guidance for 2013. The
company delivered positive earnings surprises in the last 4
quarters with an average beat of 7.39%. The long-term expected
earnings growth rate for this stock is 8.5%.
Greatbatch reported second-quarter adjusted earnings per share
(excluding one-time expenses) of 56 cents, which comfortably beat
the Zacks Consensus Estimate by 8 cents. The result exceeded the
year-ago adjusted earnings by an impressive 30.2%, driven by
solid organic revenue growth, improved gross margins and
controlled operating expenses along with benefits from effective
The company is gaining significantly from its strategic
realignment initiative to achieve 5% organic growth and transform
into a producer of complete medical devices for Original
Equipment Manufacturer (OEM) customers from being a supplier of
batteries, capacitors, and components used in implantable medical
Moreover, GB's pipeline is healthy with a number of products
currently in development that are expected to support growth in
the long run. The company has forged strategic long-term
agreements with its OEM clients to secure healthy revenue growth.
Its top customers include leading players such as
St. Jude Medical
Based on its progress, GB raised its adjusted earnings per share
guidance to the range of $2.05-$2.15 from $1.90-$2.00 for 2013.
However, Greatbatch reiterated its revenue outlook for 2013
toward the lower end of $660 million-$680 million due to the
disposition of non-core orthopedic assets worth $15 million. On
an organic basis, total sales are expected to be up by 5%-8%.
The Zacks Consensus Estimate for 2013 increased 2.5% to $2.09 per
share over the last 30 days. The Zacks Consensus Estimate for
2014 also increased 1.8% to $2.26 in the same period.
Other Stocks to Consider
Other semi-discretes stocks that warrant a look include
). It has a Zacks Rank #2 (Buy).