In this article, we will be taking a look at the 13 Most Oversold Healthcare Stocks So Far in 2025. Integer Holdings Corporation (NYSE:ITGR), a global contract development and manufacturing organization specializing in medical devices, reported solid growth in 2025. Q2 sales rose 11% to $476 million, driven by new product launches in the electrophysiology and neurovascular markets. The Cardio & Vascular segment led the surge with 24% growth, while the Cardiac Rhythm & Neuromodulation segment saw modest ga ...

Integer (ITGR) FY 2025 Conference September 04, 2025 03:00 PM ET Company ParticipantsNathan Treybeck - VP - Equity ResearchJoseph Dziedzic - President & CEOPayman Khales - COO & Interim CEONoneStatement. Sixty for everybody.Nathan TreybeckGreat. I think we're live. Good afternoon, everyone. I'm Nathan Trebek, one of the medical device analysts at Wells Fargo. Welcome to day two of our healthcare conference. I'm pleased to have management from Integer with us. We have Joe Dziedzic, President and CEO, and Pey ...

Integer (ITGR) FY 2025 Conference September 04, 2025 03:00 PM ET Speaker1Statement. Sixty for everybody.Speaker2Great. I think we're live. Good afternoon, everyone. I'm Nathan Trebek, one of the medical device analysts at Wells Fargo. Welcome to day two of our healthcare conference. I'm pleased to have management from Integer with us. We have Joe Dziedzic, President and CEO, and Peyman Khales, the incoming CEO and the current Chief Operating Officer. In the audience, we have Diron Smith, the CFO, and Kriste ...

Industry Overview - The Medical Instruments industry is experiencing a significant transformation due to the integration of generative AI (genAI), which is reshaping diagnostics, patient monitoring, and intervention workflows [1][4] - The FDA is implementing a Total Product Lifecycle (TPLC) oversight framework to enhance safety, transparency, and data integrity in the industry [1] Market Trends - The global AI in healthcare market is projected to grow at a CAGR of 38.5% from 2024 to 2030, despite facing geopolitical challenges such as tariffs and supply chain issues [2] - The generative AI market in healthcare was valued at $1.8 billion in 2023 and is expected to grow at a CAGR of 33.2% from 2024 to 2032 [4] - The diagnostics market is anticipated to grow at a CAGR of 24.6% by 2034, driven by advancements in AI applications [4] M&A Activity - The medical instruments sector is witnessing a surge in merger and acquisition (M&A) activity, with 305 transactions announced in 2024, totaling over $63.1 billion, a significant increase from 134 deals in 2023 [5] - Notable M&A transactions include UnitedHealth Group's $3.3 billion acquisition of Amedisys and Stryker's $4.9 billion purchase of Inari Medical [5] Financial Performance - The Zacks Medical Instruments industry has underperformed the S&P 500, declining 15.4% compared to the broader sector's decline of 17.4% [10] - The industry is currently trading at a forward P/E of 28.46X, higher than the broader industry's 19.32X and the S&P 500's 22.80X [12] Company Highlights - **Teleflex**: Expected 2025 sales of $3.33 billion, a 9.3% increase from 2024, with EPS projected at $14.06, indicating a 0.4% rise [18] - **Integer Holdings**: Anticipated 2025 sales of $1.87 billion, a 7.8% increase from 2024, with EPS expected to rise by 20.4% to $6.38 [22] - **Inogen**: Projected 2025 sales of $355.2 million, a 5.8% increase from 2024, with EPS expected to improve by 37.5% to a loss of 95 cents [26]

Shares of Integer (ITGR) have gained 1% over the past four weeks to close the last trading session at $107.87, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $142.11 indicates a potential upside of 31.7%.The mean estimate comprises nine short-term price targets with a standard deviation of $7.59. While the lowest estimate of $132.00 indicates a 22.4% increase from the current p ...

Core Viewpoint - Integer Holdings Corporation is actively participating in the 2025 Wells Fargo Healthcare Conference, indicating its commitment to engaging with investors and stakeholders in the healthcare sector [1]. Company Overview - Integer Holdings Corporation (NYSE: ITGR) is a leading medical device contract development and manufacturing organization (CDMO) globally, focusing on cardiac rhythm management, neuromodulation, and cardio and vascular markets [3]. - The company serves as a strategic partner for medical device companies and OEMs, aiming to enhance patient lives through innovative and high-quality products [3]. - Integer's notable brands include Greatbatch Medical and Lake Region Medical, reflecting its strong market presence [3]. Event Participation - The executive leadership team of Integer will participate in a fireside chat during the conference on September 4 at 3:00 p.m. ET, showcasing the company's proactive approach to investor relations [1]. - A live webcast of the presentation will be available on the Investor Relations section of the Integer website, ensuring accessibility for interested parties [2].

Market Overview - U.S. stocks experienced a significant decline due to escalating trade tensions and disappointing labor data, leading to a broad sell-off on Wall Street [1][10] - The Dow Jones Industrial Average fell by 542.40 points (1.23%) to close at 43,588.58, while the S&P 500 decreased by 1.60% to 6,238.01, and the Nasdaq Composite dropped by 2.24% to 20,650.13 [3] Employment Data - Nonfarm payrolls increased by only 73,000 in July, significantly below consensus expectations, and June's job creation was revised down from 147,000 to just 14,000, indicating a deeper slowdown in the labor market [2] - These labor market developments have raised the likelihood of a Federal Reserve interest rate cut in September [2] Investment Opportunities - In the current market environment, value stocks are highlighted as attractive investment options due to their potential safety margin during periods of uncertainty [3][10] - Companies such as CVS Health Corporation (CVS), Integer Holdings Corporation (ITGR), Associated Banc-Corp (ASB), and F.N.B. Corporation (FNB) are noted for their low Price to Cash Flow (P/CF) ratios, indicating strong financial health [4][10] Valuation Metrics - The P/CF ratio is emphasized as a reliable valuation metric, as it reflects a company's cash flow generation relative to its market price, providing a clearer picture of financial health compared to earnings metrics [5][6] - Positive cash flow is crucial for a company's liquidity, enabling it to manage debt, reinvest, and undertake shareholder-friendly actions [7] Stock Selection Criteria - A comprehensive approach to identifying value stocks includes considering multiple metrics such as price-to-book ratio, price-to-earnings ratio, and price-to-sales ratio, alongside a favorable Zacks Rank and Value Score [8][11][12] - Specific parameters for selecting true-value stocks include a P/CF ratio less than or equal to the industry median, a minimum stock price of $5, and a Zacks Rank of 1 or 2 [9][13] Company Highlights - CVS Health has a Zacks Rank of 2, with projected sales growth of 3.9% and EPS growth of 14.6% for the current financial year, and shares have increased by 8.1% over the past year [14] - Integer Holdings also holds a Zacks Rank of 2, with expected sales growth of 7.8% and EPS growth of 20.2%, although shares have decreased by 3.4% in the past year [15] - Associated Banc-Corp, with a Zacks Rank of 2, anticipates sales growth of 11.5% and EPS growth of 8.4%, with shares rising by 19.2% in the past year [16] - F.N.B. Corporation, also ranked 2, expects sales growth of 6.2% and EPS growth of 2.2%, with shares increasing by 9.6% over the past year [17]

Core Insights - Integer Holdings Corporation (ITGR) reported adjusted earnings per share (EPS) of $1.55 for Q2 2025, a 19.2% increase year over year, but missed the Zacks Consensus Estimate by 1.3% [1] - The company achieved revenues of $476.5 million in Q2 2025, reflecting an 11.4% year-over-year growth and surpassing the Zacks Consensus Estimate by 2.9% [2][9] - The gross profit for the quarter was $129.2 million, up 10% year over year, although the gross margin contracted by 30 basis points to 27.1% [8] Revenue Breakdown - The Cardio and Vascular (C&V) segment generated revenues of $286.9 million, a 24% increase year over year, driven by organic growth and acquisitions [5] - The Cardiac Rhythm Management & Neuromodulation (CRM&N) segment reported revenues of $171.9 million, up 2.3% year over year, supported by growth in emerging Neuromodulation customers [6] - Revenues from the Other Markets segment were $17.6 million, down 37.9% year over year, attributed to the planned exit from the Portable Medical market [7] Margin and Expense Analysis - Selling, general and administrative expenses rose to $52.9 million, an increase of 13.9% year over year, while research and development costs decreased to $14.2 million, down 8.8% year over year [10] - Adjusted operating profit was $81.3 million, reflecting a 14.7% increase from the prior year, with an adjusted operating margin expanding by 50 basis points to 17.1% [10] Financial Position - At the end of Q2 2025, Integer Holdings had cash and cash equivalents of $23.1 million, down from $31.7 million at the end of Q1 2025, while total debt was $1.2 billion [11] - Cumulative net cash flow from operating activities was $75.1 million, compared to $70.5 million a year ago [11] 2025 Guidance - Integer Holdings updated its 2025 revenue guidance to a range of $1,850 million to $1,876 million, indicating an 8-9% improvement from 2024 [12] - The company expects full-year adjusted EPS to be between $6.25 and $6.51, representing an 18-23% increase from 2024 [12] Overall Performance - The company demonstrated strong year-over-year growth in both top-line and bottom-line metrics, with significant contributions from the C&V segment and recent acquisitions [13][14] - However, modest growth in the CRM&N segment and a decline in the Other Markets segment are areas of concern [15]

Core Insights - Integer reported Q2 FY2025 GAAP revenue of $476 million, an 11.4% increase from Q2 2024, exceeding analyst estimates by $11.63 million [1] - Adjusted EPS for the quarter was $1.55, reflecting a 19.2% year-over-year growth [1][2] - Management raised profit guidance for FY2025, indicating strong operational performance, particularly in Cardio & Vascular product lines [1] Financial Performance - GAAP revenue for Q2 2025 was $476 million, up from $428 million in Q2 2024, marking an 11.2% increase [2] - Adjusted operating income rose to $81 million, a 14.1% increase from $71 million in the previous year [2] - Adjusted EBITDA increased to $99 million, up 10.2% from $89.8 million year-over-year [2] Business Overview - Integer specializes in contract manufacturing of complex medical device components for large medical technology companies [3] - The company focuses on key product lines: Cardio & Vascular, Cardiac Rhythm Management & Neuromodulation, and Other Markets [4] Segment Performance - Cardio & Vascular segment saw a 24% year-on-year increase in GAAP sales, reaching $286.9 million, driven by new product launches and acquisitions [6] - Cardiac Rhythm Management & Neuromodulation experienced modest organic growth of 2.3%, aligned with management expectations [6][11] - The "Other Markets" segment reported a 37.9% decline in sales, consistent with the company's strategy to exit the portable medical market [7] Strategic Initiatives - Recent acquisitions, particularly in coating technology, are aimed at enhancing Integer's capabilities and supporting vertical integration [8] - The company plans to continue investing in manufacturing and innovation while pursuing strategic acquisitions [14][15] Guidance and Outlook - Management raised full-year 2025 profit guidance, expecting adjusted operating income between $319 million and $331 million, a potential 16% increase from 2024 [14] - Adjusted EPS guidance for FY2025 is set at $6.25–$6.51, indicating up to 23% growth [14] - Revenue outlook for FY2025 is projected at $1.85 billion–$1.88 billion, reflecting confidence in customer demand and acquisitions [14]

Company Performance - Integer (ITGR) reported quarterly earnings of $1.55 per share, missing the Zacks Consensus Estimate of $1.57 per share, but showing an increase from $1.3 per share a year ago, representing an earnings surprise of -1.27% [1] - The company posted revenues of $476.49 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.87%, compared to year-ago revenues of $436.2 million [2] - Over the last four quarters, Integer has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Integer shares have lost about 12.6% since the beginning of the year, while the S&P 500 has gained 8.1% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.67 for the coming quarter and $6.33 for the current fiscal year [7] - The current Zacks Rank for Integer is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Industry Context - The Medical - Instruments industry, to which Integer belongs, is currently in the bottom 34% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - iRadimed (IRMD), another company in the same industry, is expected to report quarterly earnings of $0.45 per share, reflecting a year-over-year change of +7.1% [9]