Philips (PHG) Ties Up With Nuvo Group to Boost Maternal Care
Koninklijke Philips PHG recently announced that it is collaborating with Nuvo Group to address maternal care disparities specifically in rural areas and develop home monitoring services for prescribed prenatal care.
The collaboration with Philips will help Nuvo, a remote pregnancy monitoring platform, to develop a better pregnancy care experience from the prenatal stage through labor and delivery.
Recently, the White House has called for organizations to help improve health outcomes for childbearing mothers and infants. Markedly, 54% of the counties in the United States have very little or no maternity care services. In these counties, there are more than 2.2 million women of child bearing age who are exposed to the risks of underdeveloped maternity care services like no birth center and no obstetric provider.
Philips’ recent collaboration with Nuvo will address this issue as digital solutions and eco-system building are critical to address disparities regarding healthcare in rural areas.
Koninklijke Philips N.V. Price and Consensus
Philips Rides on Solid Demand Amid Pandemic
Philips witnessed solid demand for patient monitors, hospital ventilators, computed tomography and portable ultrasound systems due to the coronavirus outbreak. Increased interest in telehealth solutions like tele-ICU, tele-radiology and tele-pathology, which aid virtual working and collaboration of healthcare professionals, bodes well for Philips.
However, rising supply chain issues due to the pandemic had negatively impacted the company’s top-line growth in the fourth quarter of 2021. The supply chain management issues are still prevalent globally and present a significant threat to the company’s near-term profitability.
As a result of the pandemic, growth prospects are sluggish in the healthcare market on a global scale. Rising raw material prices are hurting Philips’ ability to sustain competitiveness in the markets it operates in.
Rising staff shortage is a major concern in the United States currently, specifically in the healthcare industry. This issue is increasing interest in telehealth solutions like tele-ICU, tele-radiology, tele-pathology, tele-dentistry services, which might act as a catalyst for the company in the healthcare market.
Rising interest in telehealth solutions might help in aiding personal health sales business, which declined 3% year over year to €1.05 billion in the fourth quarter of 2021.
The company’s earnings had declined by 31.3% to 57 cents in the fourth quarter. The slowdown in the economy has affected the medical sector. These are quite evident from Philips’ Zacks Rank of 5 (Strong Sell).
Philips’ shares have fallen 15.8% in the year-to-date period compared with the Zacks Medical-Products industry and the Medical sector’s decline of 6.7% and 6.1%, respectively.
Stocks to Consider
While Philips is reeling from the effects of an economic slowdown and global supply chain issues, here are some better-ranked stocks worth considering in the broader Medical sector.
AMN Healthcare Services AMN sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN shares have fallen 13.7% in the year-to-date period, compared with the Zacks Medical Services industry’s decline of 18.7%.
Avanos Medical AVNS flaunts a Zacks Rank #1.
Avanos shares have slumped 6.4% in the year-to-date period, compared with the Zacks Medical-Instruments industry’s decline of 14.1%.
Acumen Pharmaceuticals ABOS carries a Zacks Rank #2 (Buy).
Acumen shares have plunged 12.7% in the year-to-date period compared with the Zacks Medical - Biomedical and Genetics industry’s decline of 13.7%.
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Koninklijke Philips N.V. (PHG): Free Stock Analysis Report
AMN Healthcare Services Inc (AMN): Free Stock Analysis Report
AVANOS MEDICAL, INC. (AVNS): Free Stock Analysis Report
Acumen Pharmaceuticals, Inc. (ABOS): Free Stock Analysis Report
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