Here's Why You Should Buy Varian Medical (VAR) Stock Now

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Varian MedicalVAR is currently a top performer in the MedTech space. Improved price performance and strong fundamentals instill investors' confidence in the stock.

In the past year, Varian Medical's shares have rallied 19.4% versus the industry 's decline of 0.5%. The current level is also better than the S&P 500 index's gain of 14.3%.

In the last 60 days, the Zacks Consensus Estimate for current year's earnings has improved 4.9% to $4.50 per share. The California-based provider of radiotherapy solutions carries a Zacks Rank #2 (Buy), which indicates possibility of outperformance in the near term.

Furthermore, the stock has a Growth Score of B. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, are better picks than most.

Let's find out whether the bullish trend can sustain the stock's impressive performance in the long run.

What Makes It an Attractive Pick

Diverse Product Portfolio

Varian Medical boasts a highly diverse product spectrum that has secured a solid customer base over the years. The Halcyon radiotherapy treatment system and the HyperArc platform deserve a special mention in this regard.

Notably, the Halcyon platform has been designed to offer cost-effective cancer care worldwide. The system streamlines every aspect of image-guided volumetric intensity modulated radiotherapy (IMRT). Meanwhile, HyperArc is a high definition radiotherapy technology designed to treat multiple metastases brain cancer cases.

Furthermore, Varian Medical recently announced plans to demonstrate its comprehensive portfolio of advanced brachytherapy solutions. It is expected to boost the company's Oncology Systems segment. (Read More: Varian to Demonstrate Brachytherapy Solutions Portfolio ).

Strong International Presence

Varian Medical foresees substantial opportunity in cancer care in emerging markets. The company has expanded its reach through strategic overseas buyouts.

Varian Medical signed an agreement to acquire Sirtex, an Australian-based company focused on interventional oncology therapies. Additionally, Cooperative CL Enterprises, a leading distributor of radiotherapy equipment in Taiwan, has been acquired by Varian Medical.

Moreover, Varian Medical recently announced a software technology training and education cooperation agreement with the Brazil Ministry of Health (MOH) in a bid to make quality radiotherapy treatment readily accessible in Latin America. (Read more: Varian Medical Merges With Brazil MOH to Fight Cancer ).

Solid Guidance

Varian Medical provided a solid guidance for fiscal 2018.

Revenue growth is expected in the range of 6-9% on a year-over-year basis for fiscal 2018. The Zacks Consensus Estimate for revenues is pegged at $2.87 billion.

Adjusted earnings per share are projected in the range of $4.43-$4.53. The Zacks Consensus Estimate for the same is pinned at $4.50, within the guided range.

Other Key Picks

A few other top-ranked medical stocks are Abiomed, Inc. ABMD , Stryker Corporation SYK and Intuitive Surgical Inc. ISRG .

Intuitive Surgical has an expected long-term earnings growth rate of 12.1%. The stock sports a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Stryker has a projected long-term earnings growth rate of 9.8%. The stock carries a Zacks Rank #2.

Abiomed has a projected long-term earnings growth rate of 27%. The stock holds a Zacks Rank #1.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

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Varian Medical Systems, Inc. (VAR): Free Stock Analysis Report

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Stryker Corporation (SYK): Free Stock Analysis Report

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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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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