We have issued an updated research report on Koninklijke Philips Electronics N.V.PHG on Jul 10, 2015. The company has been riding high on innovations, mainly on healthcare and Consumer Lifestyle segment fronts.
Philips has been taking significant strides to strengthen its healthcare sector and position it as a key driver of growth. In that respect, in the last two months, the company launched a host of highly advanced healthcare offering and cracked noteworthy deals with renowned healthcare institutions. This includes the introduction Amara View CPAP mask to enhance the experience of CPAP patients; Alice NightOne to enable efficient identification and treatment of patients with sleep disorders; and Lumify to offer greater mobility, connectivity and flexibility during any ultrasound process.
Also, Philips inked a 15-year ultrasound provision partnership with Reinier de Graaf hospital in the Netherlands. Additionally, the company joined hands with Westchester Medical Center to enhance healthcare services in Hudson Valley in New York.
As doctors and healthcare professionals struggle to deal with the increasing complexity of human diseases, Philips' state-of-the-art devices will likely become more popular in hospitals and clinics, thus boosting the company's prospects.
Apart from this, Philips collaborated with ABB Ltd. ABB to further boost its Consumer Lifestyle segment and create smart homes in China via its Hue offering. Amid rising technological advancement and tight schedule of the modern generation, smart home technologies are in great demand. From automatic switch off of all screen devices to closing the blinds on a hot day via pre-set instructions or by a smart phone click, people are finding newer ways of making their homes smarter. The deal will amplify the company's health & wellness and domestic appliances revenues in future.
Echoing similar sentiments, over the last 30 days, the Zacks Consensus Estimate for 2015 and 2016 earnings per share increased by about 40% and 15%, respectively to $1.34 and $2.04, respectively. Consequently, the company currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other better-ranked stocks in the same sector include GigOptix, Inc. GIG and Jason Industries, Inc. JASN . While GigOptix presently sports a Zacks Rank #1 (Strong Buy), Jason Industries, Inc. carries the same Zacks Rank as Philips.