Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and ...

Core Viewpoint - Investors in the Medical - Drugs sector should consider Grifols (GRFS) and Stevanato Group (STVN) for potential value opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Grifols has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Stevanato Group, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank strategy focuses on companies with positive earnings estimate revision trends, which is a key consideration for value investors [2] Group 2: Valuation Metrics - Grifols has a forward P/E ratio of 8.39, significantly lower than Stevanato Group's forward P/E of 39.52, suggesting that GRFS may be undervalued [5] - The PEG ratio for Grifols is 0.29, indicating a favorable valuation relative to its expected earnings growth, while Stevanato Group has a PEG ratio of 2.13 [5] - Grifols also has a P/B ratio of 0.65, compared to Stevanato Group's P/B of 4.51, further highlighting the relative undervaluation of GRFS [6] Group 3: Overall Value Assessment - Grifols earns a Value grade of A, while Stevanato Group receives a Value grade of C, indicating that GRFS is viewed more favorably by value investors [6] - The combination of Zacks Rank and Style Scores suggests that Grifols is the better investment option at this time [6]

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GRFS, UNM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial ...

Investors interested in stocks from the Medical - Drugs sector have probably already heard of Grifols (GRFS) and Neurocrine Biosciences (NBIX) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy ...

Grifols, S.A. (NASDAQ:GRFS) Q1 2025 Earnings Conference Call May 12, 2025 12:30 PM ET Company Participants Danny Segarra - VP, IR and Sustainability Nacho Abia - CEO Rahul Srinivasan - CFO Roland Wandeler - President Biopharma Conference Call Participants Charles Pitman - Barclays Alvaro Lenze - Alantra Equities Jaime Escribano - Banco Santander Guilherme Sampaio - CaixaBank Danny Segarra Hello, everyone. My name is Danny Segarra, and myself as the Head of Investor Relations and Sustained and Vice President ...

Debt and Financial Exposure - As of December 31, 2024, the company had $3.2 billion and €6.0 billion in senior interest-bearing debt, with 29.0% of this debt at variable interest rates[130] - The company has approximately $3.2 billion of U.S. dollar denominated senior debt, increasing its exposure to currency risk[132] - In 2024, €4.8 billion, or 66.6%, of the company's net revenue of €7.2 billion was denominated in U.S. dollars, exposing it to foreign currency exchange rate fluctuations[131] Operational Risks - The company relies on third parties for the sale, distribution, and delivery of its products, which could materially affect its business if these parties fail to perform[140] - The company’s manufacturing capacity could be significantly impacted by accidents or force majeure events, potentially leading to substantial revenue loss[133] - The company’s reliance on third-party suppliers for key components may impair its manufacturing ability if these suppliers fail to deliver[136] - The company’s revenue could be adversely affected by extreme weather conditions and climate change, which may increase operational risks[133] Regulatory and Compliance Challenges - The company is subject to complex and evolving data privacy regulations, which could lead to increased operational costs and compliance challenges[152] - The California Privacy Rights Act (CPRA) was enacted in November 2020, effective January 1, 2023, expanding consumer control over personal information and increasing compliance obligations for businesses[154] - Noncompliance with GDPR can result in penalties of up to €20 million or 4% of global company revenues[156] - The company faces potential costs related to compliance with various data protection regulations, which could adversely affect its business[157] - The ongoing changes and uncertainties surrounding the Affordable Care Act (ACA) could materially affect the company's operations in the United States[188] - Government pressures on reimbursement rates and pricing in the healthcare industry may adversely impact the company's financial performance[190] - The 340B Program requires the company to extend discounts, and changes to this program could negatively affect financial results[191] - The company must report detailed pricing information to CMS, and inaccuracies in this reporting could lead to fines and sanctions that adversely affect business operations[205] - Non-compliance with the 340B Program under the Public Health Service Act could lead to civil monetary penalties of up to $5,000 for each instance of overcharging covered entities[202] - Regulatory approvals are required for marketing products outside the United States, and delays in obtaining these approvals could hinder market entry and revenue generation[206] - The company is required to disclose payments to healthcare providers under the Physician Payment Sunshine Act, which imposes additional compliance costs[207] - Heightened scrutiny over pharmaceutical pricing in the U.S. could impact the company's ability to negotiate sales contracts and pricing agreements[212] - Proposed legislation targeting drug pricing may impose additional pricing pressures on the company's products, potentially affecting profitability[215] Intellectual Property and Patent Risks - The patent landscape in biotechnology is uncertain, and the company may not secure additional patents or face challenges to existing patents, impacting competitive advantage[163] - The company may be subject to substantial costs from patent litigation, which could affect its ability to compete effectively in the marketplace[175] - There is a risk of unauthorized use of the company's intellectual property, which could harm its reputation and commercial interests[169] - The company relies on trade secrets and nondisclosure agreements to protect proprietary information, but these measures may not be fully effective[170] - The company has in-licensed certain patent rights, and any failure of licensors to enforce their rights could impact the company's competitive position[177] - The company may need to obtain additional licenses or renew existing agreements, which could be uncertain and affect its ability to develop and commercialize products[178] Climate Change and Environmental Risks - Climate change poses risks to the company's operations, including physical risks like water scarcity and flooding, which could increase costs and disrupt the supply chain[182] - New regulatory requirements related to climate change may increase operating costs and necessitate additional investments in technology[183] - The company faces risks associated with environmental, health, and safety regulations, which could result in substantial liabilities and compliance costs[219] Market and Shareholder Dynamics - The Grifols Family and Scranton Enterprises B.V. own approximately 36% of Class A shares, exercising 100% voting control[226] - Class B ADSs traded as high as $11.56 on October 1, 2024, and as low as $5.47 on March 13, 2024, closing at $6.52 on April 10, 2025[227] - The company has faced negative publicity from short sellers, which may impact revenues and customer confidence[231] - Fluctuations in the exchange rate between the U.S. dollar and the euro may affect the value of ADSs and shares, increasing volatility[234] - The company may incur significant expenses defending against lawsuits resulting from negative publicity, impacting financial condition[232] - Ineffective internal controls could harm the company's ability to provide reliable financial reports, affecting market confidence[224] - The market price of shares may be influenced by various factors, including short selling and market expectations for financial performance[229] - The company intends to evaluate costs and liabilities associated with registration requirements for any rights offering[239] - The depositary may refuse to transfer ADSs under certain conditions, impacting liquidity for holders[241] Cost Management and Efficiency - A cost savings plan has been implemented to reduce headcount and improve efficiency in plasma procurement, which may lead to unexpected charges and expenses[179] - The company has acquired multiple plasma collection centers, including Canadian Plasma Resources Corporation in 2023 and Haema Plasma Kft. in 2024, as part of its plasma acquisition strategy[179]

Group 1 - The article expresses a beneficial long position in the shares of GRFS, indicating a positive outlook on the company's stock performance [1] - The author emphasizes the importance of conducting due diligence and research prior to any investment, highlighting the risks associated with short-term trading and options trading [2] - It is noted that past performance is not indicative of future results, and no specific investment recommendations are provided [3]

Core Viewpoint - Grifols has received a $21 million grant from The Michael J. Fox Foundation to develop plasma-based biomarkers for early detection of Parkinson's disease, aiming to enhance diagnostic tools and disease-modifying therapies [1][4][7]. Company Overview - Grifols is a global healthcare company founded in 1909, specializing in plasma-derived medicines and transfusion medicine, with operations in over 110 countries [8][9][10]. - The company has a significant repository of over 100 million plasma samples collected over nearly 15 years, making it one of the largest collections of biospecimens globally [5][8]. Research Initiative - The "Chronos-PD" initiative will analyze longitudinal plasma samples over a period of up to 10 years to track changes in plasma proteins in individuals with Parkinson's disease [4][6]. - The research aims to establish an early-warning system for Parkinson's disease, potentially revolutionizing its management by identifying biomarkers before clinical symptoms appear [7][8]. Technological Approach - Grifols is leveraging advanced technologies, including AI and multiomics analysis, to drive research and development in diagnostic and therapeutic drug discovery [6][8]. - The initiative is expected to not only benefit Parkinson's disease research but also be applicable to other diseases and therapeutic areas [5][6].

Core Message - Grifols has received a $21 million grant from The Michael J Fox Foundation for Parkinson's Research to identify plasma-based biomarkers for early detection of Parkinson's disease (PD) through the "Chronos-PD" initiative [1][11] - The initiative aims to revolutionize PD management by detecting the disease years before symptoms appear, enabling the development of new diagnostics and disease-modifying therapies [1][4][5] Grifols' Research and Capabilities - Grifols possesses one of the world's largest collections of biospecimens, with over 100 million plasma samples collected over nearly 15 years, representing thousands of disease states [3][5] - The company leverages its proprietary plasma repository, advanced technology platforms, and plasma proteomics expertise to drive innovative research [4][5] - Grifols' subsidiary Alkahest, specializing in AI and multiomics analysis, is leading the Chronos-PD program [12] Parkinson's Disease Context - PD affects nearly 1 million people in the US and over 6 million worldwide, with limited understanding of its drivers despite decades of research [10] - Current PD diagnosis relies on medical history, physical examination, and brain imaging, often detecting the disease too late to significantly slow or reverse its progression [2] Grifols' Broader Impact - Grifols is a global healthcare leader in plasma-derived medicines and transfusion medicine, operating in over 110 countries with more than 23,000 employees [14][16] - The company focuses on treating conditions across various therapeutic areas, including immunology, neurology, and infectious diseases, driven by patient needs and its growing knowledge of chronic and rare conditions [6][7] - Grifols continues to expand its network of donation centers, which is the world's largest with over 390 centers across multiple regions [15]