On Jul 12, Zacks Investment Research upgraded
) to a Zacks #1 Rank (Strong Buy).
Why the Upgrade?
The upgrade came on the heels of Hospira's recently completed
Orchid facility buy. Earlier in the month, the company announced
that it has completed the acquisition of the penem and penicillin
active pharmaceutical ingredient manufacturing unit and an
associated research and development facility from India-based
Orchid Chemicals & Pharmaceuticals Ltd. for around $218
million. The deal was first announced in 2012. (Read more:
HOSPIRA COMPLETES ORCHID FACILITY BUY
Moreover, Hospira delivered impressive first quarter 2014 earnings
of 60 cents per share, beating the Zacks Consensus Estimate by 11
cents and year-ago earnings by 15.4%. The first quarter earnings
beat was aided by higher revenues.
Hospira's Specialty Injectable Pharmaceuticals segment has over the
past several quarters contributed the majority of revenues. The
segment performed well in the first quarter too. Favorable pricing
as well as volume led to the strong segmental performance.
Expansion in volume was driven by continued supply recovery along
with competitor supply issues in the U.S. Segmental sales climbed
9.9% (up 11.1% at constant currency) to $716.3 million.
The Zacks Consensus Estimate for 2014 is currently pegged at $2.21.
It is on the higher end of the company's guidance range of $2.00 to
$2.25 per share.
Other Stocks to Consider
Some other medical stocks worth considering include
Biogen Idec Inc.
The Medicines Company
). All three stocks sport a Zacks Rank #1.
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