Core Viewpoint - The article emphasizes the importance of value investing and highlights Integer Holdings (ITGR) as a strong candidate for value investors due to its attractive valuation metrics and earnings outlook [2][8]. Company Overview - Integer Holdings (ITGR) currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock is trading at a P/E ratio of 14.91, significantly lower than the industry average of 27.66, suggesting it may be undervalued [4]. Valuation Metrics - ITGR's P/B ratio stands at 2.12, compared to the industry's average P/B of 3.73, indicating a favorable valuation relative to its book value [5]. - The P/S ratio for ITGR is 2.01, which is lower than the industry average of 2.87, reinforcing the perception of the stock being undervalued [6]. - The P/CF ratio for ITGR is 17.72, which is attractive compared to the industry's average P/CF of 20.94, further supporting its undervaluation status [7]. Earnings Outlook - The combination of ITGR's strong valuation metrics and positive earnings outlook positions it as an impressive value stock at the moment [8].

Core Insights - Integer Holdings Corporation will host a conference call to discuss its financial results and business highlights for Q3 2025 on October 23, 2025, at 8 a.m. CT / 9 a.m. ET [1] - A news release with the financial results will be issued prior to the conference call on the same day [1] Conference Call Details - An audio replay of the conference call will be available for seven days, accessible by dialing (800) 770-2030 or (609) 800-9909 with Conference ID 3120125 [2] - The call will also be available live or via archived replay on the Investor Relations section of the Integer website [2] Company Overview - Integer Holdings Corporation is one of the largest medical device contract development and manufacturing organizations (CDMO) globally, focusing on cardiac rhythm management, neuromodulation, and cardio and vascular markets [4] - The company aims to enhance patient lives by providing innovative, high-quality products and solutions, with brands including Greatbatch Medical® and Lake Region Medical® [4]

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 ...

Financial Data and Key Metrics Changes - The company reported a $10 million pull forward in revenue for Q2, which was a result of shifts in customer demand [4][6] - Sales beat expectations by $2 million, and guidance for CRM and N was raised from low to mid-single digits to mid-single digits [4][8] - The backlog at the end of Q2 was approximately $700 million, consistent with the previous quarter [6][7] Business Line Data and Key Metrics Changes - Cardiac Rhythm Management (CRM) growth was guided to mid-single digits, reflecting a tightening of previous guidance [8][11] - CMV (Cardiac and Vascular) segment growth was approximately 14% in Q1 and normalized to 14% in Q2, with expectations of slower growth in the second half [9][10] - The company anticipates mid-teens growth for CMV this year, indicating a strong year-over-year performance [11] Market Data and Key Metrics Changes - The renal denervation (RDN) market is currently small, estimated at less than $100 million globally, with potential growth to $200 million to $250 million next year [18][19] - The company has good visibility into customer demand, with a rolling 12-month forecast provided by customers [12][13] Company Strategy and Development Direction - The company is focusing on expanding its capabilities in coatings through recent acquisitions, which are expected to enhance customer relationships and upselling opportunities [38][39] - The strategic focus remains on four growth markets: electrophysiology, structural heart, neurovascular, and neuromodulation, which are considered dynamic and attractive [45][51] Management's Comments on Operating Environment and Future Outlook - Management noted no significant changes in demand from customers amid macro volatility [16] - The company is optimistic about returning to pre-COVID gross margins of 31% and operating margins of 18.8% through continuous improvement and operational efficiency [60][61] Other Important Information - The company has no immediate plans for significant capacity expansions but has recently expanded two facilities in Ireland [48] - Pricing is expected to be neutral on average, with 70% of the business under contract [49] Q&A Session Summary Question: What is the thought process behind the guidance? - Management explained that the guidance remains unchanged due to good visibility into order patterns and a consistent backlog [6][8] Question: What are the components driving deceleration in CMV? - Management indicated that variability in product launches and timing of demand are influencing the growth rates [10][11] Question: How is the company addressing capacity for new products? - Management confirmed that they have long-term visibility into customer demand and plan capacity years in advance to avoid constraints [21][22] Question: What is the outlook for the RDN market? - Management sees potential in the RDN market but acknowledges it is currently a small part of the business [18][19] Question: How does the company view the pricing environment? - Management expects pricing to be neutral on average, with opportunities for adjustments in the non-contracted portion of the business [49] Question: What is the company's approach to M&A? - Management emphasized that M&A is strategic, focusing on capabilities that fill gaps, with a responsible approach to valuations [63][64]

Financial Data and Key Metrics Changes - The company reported a $10 million pull forward in revenue for Q2, which was a result of shifts in customer demand profiles [4][5] - The sales beat by $2 million, and the guidance for CRM and N was raised from low to mid-single digits to mid-single digits for the full year [4][5] - The backlog at the end of Q2 remained stable at approximately $700 million, providing good visibility for the next two quarters [5][6] Business Line Data and Key Metrics Changes - Cardiac Rhythm Management (CRM) growth was guided to mid-single digits, with a notable deceleration in CMV growth expected in the second half of the year [7][10] - CMV grew about 14% in Q1 and normalized for pull forward, also grew about 14% in Q2, implying a guidance of 7% for the second half [8][10] - The company expects mid-teens growth for CMV this year, indicating a strong year-over-year performance [10] Market Data and Key Metrics Changes - The renal denervation (RDN) market is currently small, estimated at less than $100 million globally, with potential growth to $200 million to $250 million next year [14][15] - The company sees opportunities in the tricuspid and mitral markets, which are part of the structural heart focus [34][35] Company Strategy and Development Direction - The company is focused on maintaining good visibility into customer demand and has a long-range planning process to ensure capacity meets future growth [18][40] - Recent acquisitions in coatings capabilities are expected to enhance customer relationships and create upselling opportunities [28][29] - The company aims to return to pre-COVID gross margins of 31% and operating margins of 18.8% through continuous improvement and operational efficiency [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying strength of the markets they operate in, particularly in electrophysiology, structural heart, neurovascular, and neuromodulation [32] - The pricing environment is expected to be neutral on average, with 70% of the business under contract [33] Other Important Information - The company has a strong pipeline for M&A, with valuations trending lower than in previous years, and continues to seek strategic acquisitions [42][43] - The company is not currently planning any significant capacity expansions but has made recent expansions in Ireland [33] Q&A Session Summary Question: What is the outlook for cardiac rhythm management growth? - The guidance assumes 8% growth in the second half versus 2% in the first half, with new products and customer demand contributing to this acceleration [19] Question: How does the company view the renal denervation market? - The RDN market is seen as having potential tailwinds, with expectations of significant growth in the coming years [14][15] Question: What is the company's strategy regarding M&A? - The company is focused on strategic acquisitions that fill capability gaps and has a responsible approach to valuations [42][43]

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]

Core Viewpoint - Integer (ITGR) shares have increased by 1% over the past four weeks, closing at $107.87, with a mean price target of $142.11 indicating a potential upside of 31.7% according to Wall Street analysts [1][2]. Price Targets and Analyst Consensus - The mean estimate consists of nine short-term price targets with a standard deviation of $7.59, where the lowest estimate is $132.00 (22.4% increase) and the highest is $155.00 (43.7% increase) [2]. - A low standard deviation suggests a strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [9]. Earnings Estimates and Market Sentiment - Analysts show strong agreement in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases [11]. - Over the last 30 days, the Zacks Consensus Estimate for the current year has risen by 0.1%, with one estimate moving higher and no negative revisions [12]. Zacks Rank and Investment Potential - ITGR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13]. - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [14].

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]