Here's Why You Should Hold GEHC Stock in Your Portfolio for Now

Core Viewpoint - GE HealthCare Technologies, Inc. (GEHC) is positioned for growth due to its focus on innovation, strong fourth-quarter performance, and acquisitions, despite facing geopolitical tensions and competition [1] Company Overview - GEHC has a market capitalization of $37.27 billion and projects a 6.2% growth over the next five years, with a trailing four-quarter average earnings surprise of 6.17% [2] Growth Factors - Macro Tailwinds: The company is experiencing strong growth across all segments, driven by easing supply-chain challenges, robust demand, and improved pricing. Key products contributing to revenue growth include Magnetic Resonance (MR), MI, CT, general imaging, and women's health products. GEHC expects organic revenue growth of 2-3% in 2025 and has an order backlog of $19.8 billion as of December 2024 [3] - Innovations: Recent product launches, such as the Invenia Automated Breast Ultrasound Premium and AltiX AI.i edition, are expected to enhance efficiency and precision in medical imaging and cardiac procedures [4][5] - Cloud Solutions: The Genesis portfolio, a cloud enterprise imaging software-as-a-service solution, aims to modernize healthcare data management, improving workflow and reducing operational costs [6][8] - Sustainability Initiatives: The Freelium platform, which uses less than 1% of helium compared to traditional systems, promotes sustainability in MR imaging [8] - Regulatory Approvals: The company received FDA 510(k) clearance for updated Voluson Expert Series ultrasound systems, enhancing women's healthcare capabilities [9] Acquisitions & Partnerships - GEHC is actively pursuing partnerships and acquisitions to enhance its product offerings and customer base. Recent collaborations include an expansion with NVIDIA Corporation for AI-driven solutions and a strategic partnership with Sutter Health to improve access to imaging services [10][11][13] Financial Performance - In the fourth quarter of 2024, GEHC reported improved earnings and revenues year-over-year, with total company orders increasing 6% organically. The net income margin rose to 13.5%, up 580 basis points from the previous year [14] Competitive Landscape - The medical devices market is highly competitive, with major competitors including Siemens Healthineers, Philips Healthcare, and Canon. In the Pharmaceutical Diagnostics segment, GEHC competes with Bayer, Bracco, and others [15][16] Challenges - GEHC faces potential challenges from rising tariffs on Chinese imports, which could impact its cost structure and profitability. The company anticipates a 10-basis-point hit to the adjusted EBIT margin due to these tariffs [17] Estimate Trends - The Zacks Consensus Estimate for GEHC's earnings for fiscal 2025 has improved by 2 cents to $4.70 per share, with first-quarter revenues projected at $4.66 billion, reflecting a 0.2% year-over-year improvement [19]