Bioventus (BVS) is a Zacks Rank #1 (Strong Buy) that has a C for Value and an A for Growth. This company makes drugs that help people heal quickly and safely. They target osteoarthritis, surgical and non surgical bones healing. Let’s explore more about this company in this Bull of The Day article.
Description
Bioventus, Inc. is a medical technology company, which focuses on developing and commercializing and proprietary orthobiologic products for the treatment of patients suffering from an array of musculoskeletal conditions. The BMP segment comprises proprietary next-generation bone morphogenetic protein, or BMP. The company was founded on November 23, 2011 and is headquartered in Durham, NC.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
Bioventus (BVS) has a solid earnings history with the company topping the Zacks Consensus in each of the last three quarters.
Over the course of the last four quarters the average positive earnings surprise works out to be 102%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Annual Estimates are moving higher for Boventusms.
This quarter has held still at $0.06.
Next quarter is also showing no movement in the last 90 days and is at $0.09.
The full year 2024 has increased from $0.27 to $0.40 over the last 30 days.
Next year has also moved up from $0.43 to $0.45 over the last 30 days.
Growth
For 2024 the company is expected to show 9.45% growth with $560 million in sales. Next year that number grows to $593M for a 5.8% increase.
Valuation
The forward PE is 24x and that is a fairly high multiple for the expected topline growth. Price to book is 4.1x and that metric is also a little high. Price to sales is at 1.46x leaves plenty of room for expansion with better revenue metrics.
Margins are looking good with the Zacks site showing operating margins moving from 1% to 5.1% and up to 5.7% over the last three quarters. Growing sales and higher margins will translate to higher earnings per share.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
