Key Takeaways HSIC is set to report Q4 2025 results on Feb. 24, with revenues projected to rise 4.5% year over year.Henry Schein's Global Specialty Products revenues are expected to grow 5.9% on implant strength.HSIC's Global Technology sales are projected to jump 9.7% on SaaS and cloud momentum.Henry Schein, Inc. (HSIC) is scheduled to release fourth-quarter 2025 results on Feb. 24, before the opening bell.In the last reported quarter, the company posted adjusted earnings per share (EPS) of $1.38, which su ...

Core Insights - Veracyte, Inc. (VCYT) is set to report its fourth-quarter 2025 results on February 25, with expectations of strong performance based on previous earnings surprises [1][9] Financial Performance - The Zacks Consensus Estimate for revenues is $138.7 million, indicating a 16.9% increase from the previous year [2] - The Zacks Consensus Estimate for EPS is 41 cents, reflecting a 13.9% year-over-year growth [2] - Earnings estimates have increased by 2.5% in the last 30 days, suggesting positive sentiment leading up to the earnings report [3] Business Segments - The core testing business is anticipated to show solid revenue growth, driven by strong volumes in Decipher and Afirma tests [4][9] - Decipher Prostate tests delivered approximately 26,700 tests in the third quarter, marking 14 consecutive quarters of over 25% year-over-year volume growth, a trend expected to continue [5] - Test volumes in the high-risk localized segment are also expected to have increased, supported by ongoing research and clinical adoption [6] Product Insights - Product volume in the third quarter was around 2,200 tests, with a year-over-year revenue growth of 4%, a trend expected to persist [7] - However, management has indicated a decline in product gross margin due to a transition to a contract manufacturing model [7][9] Market Position - VCYT has an Earnings ESP of +7.98% and a Zacks Rank of 2 (Buy), indicating a higher likelihood of beating earnings estimates [11] - The company is facing challenges in its biopharma revenues and expects lower product gross margins in the fourth quarter due to restructuring efforts [9][10]

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that by 2040, humanoid robots could create a market worth $250 trillion, representing a major shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is seen as a catalyst for redefining work, learning, and creativity, attracting significant interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4][6] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a major technological advancement with the potential for substantial social benefits [8]

Core Insights - Charles River Laboratories International, Inc. (CRL) is set to report its fourth-quarter 2025 results on February 18, with adjusted earnings per share (EPS) of $2.43 in the last quarter exceeding the Zacks Consensus Estimate by 4.74% [1] Financial Estimates - The Zacks Consensus Estimate for CRL's revenues is $985.9 million, indicating a 1.7% decline from the previous year [2] - The Zacks Consensus Estimate for EPS is $2.33, reflecting a 12.4% year-over-year decrease [2] Performance and Trends - Earnings estimates have remained unchanged over the past 30 days, with a consistent performance noted in the previous quarters [3] - The RMS segment is expected to see a 0.5% revenue increase in Q4 2025, driven by large research model product revenues, particularly from Noveprim and GEMS [8] Collaborations and Revenue Drivers - CRL engaged in collaborations with Toxys and X-Chem, which may positively impact revenues through enhanced service offerings [4][5] - Despite NIH budget cuts, revenues from academic and government clients are anticipated to remain favorable, although early-stage biotech demand may be constrained by funding challenges [7] Segment Performance - The Discovery and Safety Assessment (DSA) segment is projected to experience a 3.9% revenue decline year-over-year due to budget pressures from biopharmaceutical clients [11] - The Manufacturing Solutions segment is expected to benefit from strong performance in the Microbial Solutions business, with a projected revenue increase of 2.3% year-over-year [12][14] Market Position and Outlook - CRL's overall pricing environment is expected to remain stable, but the DSA segment may face challenges impacting overall revenues [11] - The company has a Zacks Rank of 3, indicating a hold position, with an Earnings ESP of -0.46%, suggesting a lower likelihood of beating estimates [15]

Core Insights - Labcorp Holdings Inc. is set to report its fourth-quarter 2025 results on February 17, with adjusted earnings of $4.18 in the last quarter, exceeding the Zacks Consensus Estimate by 1.21% [1] - The company has consistently surpassed earnings estimates over the past four quarters, with an average surprise of 2.68% [1] Q4 Estimates for Labcorp - The Zacks Consensus Estimate for Labcorp's fourth-quarter 2025 revenues is $3.55 billion, indicating a 6.6% increase from the previous year [2] - The estimated EPS for the fourth quarter is projected to improve by 15% to $3.95 [2] Estimate Revision Trend - Earnings estimates for Labcorp's fourth quarter have remained stable at $3.95 over the past 30 days [3] Factors Influencing Performance - The Diagnostics Laboratories segment is expected to maintain strong momentum due to organic growth and acquisitions, including the purchase of Incyte Diagnostics' clinical pathology business and other assets [4] - Demand for core tests in high-growth specialty areas such as oncology and women's health is anticipated to remain robust, supported by new testing capabilities [5] - The Labcorp OnDemand channel is likely to see continued strong adoption, contributing to a projected 7% year-over-year revenue increase in the Diagnostics segment [6] Biopharma Laboratory Services - The Biopharma Laboratory Services unit is expected to grow by 3.1% year-over-year, despite challenges from restructuring and delayed study starts [8][10] - The Central Laboratories component is anticipated to continue benefiting from its strength, although Early Development revenues faced impacts from previous quarter delays [9] Technological Advancements - Labcorp's increased use of science and technology, including the introduction of AI tools like Test Finder, is expected to enhance growth and operational efficiency [10] - Investments in digital and AI capabilities are aimed at improving core laboratory operations, with the Launchpad initiative targeting annual savings of $100-$125 million [11]

Core Viewpoint - Medtronic (MDT) is expected to report its third-quarter fiscal 2026 results on February 17, with earnings per share (EPS) anticipated at $1.33, reflecting a 4.3% decrease year-over-year, while revenues are projected to reach $8.90 billion, indicating a 7.3% growth from the previous year [1][2]. Group 1: Q3 Estimates and Performance - The Zacks Consensus Estimate for Medtronic's third-quarter revenues is $8.90 billion, suggesting a 7.3% increase from the same quarter last year [2]. - The earnings estimate for the third quarter has been revised down by 1 cent to $1.33 per share over the past 60 days [3]. - Medtronic has consistently beaten earnings estimates in the last four quarters, with an average beat of 2.75% [1]. Group 2: Segment Performance Expectations - The Cardiovascular segment is projected to grow by 10.8% year-over-year, driven by the Cardiac Ablation Solutions business and strong performance from the Affera mapping system and Sphere-9 catheter [6][4]. - The Neuroscience segment is expected to see a revenue increase of 5.2% year-over-year, supported by the spine AiBLE ecosystem and growth in Core Spine and Neurosurgery [9][7]. - The Diabetes unit is anticipated to deliver an 11.5% revenue growth, bolstered by new product launches and pent-up demand [15][12]. Group 3: Challenges and Innovations - The Medical Surgical segment has faced challenges due to market pressures from bariatric surgery and a shift towards robotic surgery, but the FDA clearance for the Hugo robotic-assisted surgery system is a positive development [10]. - The Endoscopy business is expected to perform well, driven by growth in esophageal products and the AI-powered GI Genius solution [11]. - Medtronic's Diabetes business is in a strong innovation cycle, with the MiniMed 780G system receiving multiple approvals and a broad U.S. commercial launch [13]. Group 4: Strategic Developments - Medtronic has filed a registration statement for a proposed initial public offering (IPO) as part of a planned separation, allowing the company to focus on high-margin growth markets [14].

Core Insights - Align Technology, Inc. (ALGN) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $3.29, a 34.8% increase year over year, exceeding the Zacks Consensus Estimate by 10.1% [1] - Full-year adjusted EPS reached $10.51, reflecting a 12.6% increase from 2024, also surpassing estimates by 2.8% [1] - Total revenues for Q4 were $1.05 billion, up 5.3% year over year, beating the Zacks Consensus Estimate by 1.33% [1] Revenue Performance - Full-year revenues totaled $4.03 billion, a 0.9% increase from 2024, exceeding the Zacks Consensus Estimate by 0.2% [2] - Clear Aligner segment revenues rose 5.5% year over year to $838.1 million, supported by a record volume of 676.9 thousand cases, which was 7.7% higher than the previous year [3] - Imaging Systems & CAD/CAM Services revenues increased 4.2% to $209.4 million, driven by higher volumes and the adoption of the iTero lumina scanner [4] Margin Analysis - Gross profit for Q4 was $683.6 million, down 1.9% year over year, with gross margin contracting 477 basis points to 65.3% due to a 22% increase in the cost of net revenues [5] - Operating income totaled $158.9 million, down 10.3% year over year, with operating margin contracting 263 basis points to 15.2% [5] Financial Position - At the end of Q4, cash and cash equivalents stood at $1.09 billion, up from $1.04 billion at the end of 2024 [6] - Cumulative net cash provided by operating activities was $593.2 million, compared to $738.2 million at the end of 2024 [6] Stock Activity - During the reported quarter, the company repurchased approximately 0.7 million shares at an average price of $142.87 per share, with $831.2 million remaining for future repurchases under the $1.0 billion program [8] Future Outlook - For 2026, Align Technology expects worldwide revenue growth of 3%-4% year over year, with Clear Aligner volume growth projected in the mid-single digits [9] - The Zacks Consensus Estimate for 2026 revenues is $4.18 billion, suggesting a 3.8% growth year over year [9] - For Q1 2026, the company anticipates revenues between $1.010 billion and $1.030 billion, reflecting a 3%-5% year-over-year increase [10] Product Developments - The company launched the Invisalign System with mandibular advancement in the Philippines and Thailand, aimed at correcting Class II skeletal and dental issues [12] - Continued piloting of Exocad ART in several European markets is planned for broader rollout this year [12]

Core Viewpoint - The AI sector remains promising, with significant growth potential and opportunities for investment despite recent volatility in stock prices [7][40][67]. Market Overview - The AI stocks experienced a sell-off similar to previous market declines, with the S&P 500 dropping approximately 15% during a recent period [8]. - The current market is characterized by confusion, with geopolitical events influencing investor behavior and leading to volatility in both tech and safe haven sectors [17][22]. AI Sector Insights - The global AI market is projected to grow from $539 billion in 2026 to over $3 trillion by 2033, driven by investments from major tech companies and increasing demand for data centers [40][42]. - Adoption of AI technologies is expanding across various sectors, including healthcare and manufacturing, indicating a long-term trend rather than a temporary phase [15][20]. Stock Recommendations - The top 10 AI stocks recommended show an average revenue growth rate of 38% and an EPS growth rate of 99%, significantly outperforming the S&P 500 and the Magnificent Seven stocks [66][67]. - Specific stocks highlighted include: - **Lumentum Holdings (LITE)**: Up 402% in the last year, with a long-term growth rate of 61% [70]. - **Micron Technology (MU)**: Up 387% in the last year, with a long-term growth rate of 51% [72]. - **Ciena (CIEN)**: Up 215% in the last year, with a long-term EPS growth CAGR of 44% [74]. - **General Motors (GM)**: Up 76% in the last year, utilizing AI for enhanced vehicle connectivity [79]. - **Taiwan Semiconductor Manufacturing (TSM)**: Up 71% in the last year, with strong growth metrics [80]. - **Credo Technology (CRDO)**: Despite recent declines, it has strong growth potential with a forward EPS growth rate of 248% [97]. - **AppLovin (APP)**: Up almost 1000% within Alpha Picks, with a long-term growth rate of 48% [98]. - **Globus Medical (GMED)**: In the healthcare sector, showing strong growth metrics [100]. Investment Strategy - The strategy emphasizes buying on dips, particularly for stocks with strong fundamentals that have recently experienced price declines [35][106]. - The quant model used for stock selection focuses on multiple factors, including growth, value, and profitability, ensuring a diversified approach to investment [51][60].

Core Insights - The U.S. equity markets in Q4 2025 were influenced by optimism regarding potential monetary easing and caution related to economic growth and valuations [1] - The Meridian Growth Fund reported a quarterly return of -0.39%, underperforming the Russell 2500 Growth Index which returned 0.33% [1] - The Fund's focus remains on high-quality businesses with strong competitive advantages and sustainable earnings growth as it approaches 2026 [1] Company Highlights - Globus Medical, Inc. (NYSE:GMED) was highlighted as a leading contributor to the Meridian Growth Fund, focusing on healthcare solutions for musculoskeletal disorders [2] - The stock of Globus Medical, Inc. had a one-month return of 5.77% and a 52-week gain of 0.04%, closing at $92.98 per share with a market capitalization of $12.558 billion on January 26, 2026 [2] - The company reported a re-acceleration in its core spine business to double-digit growth, with evidence of renewed market share gains and improved operating leverage expected in 2026 [3]

Core Insights - Intuitive Surgical's (ISRG) business in China is facing challenges due to geopolitical factors and industrial policies affecting capital purchasing decisions [2] - The company reported a slight decline in placements, with only 13 da Vinci systems installed in China during Q3 2025, indicating a constrained and competitive market [3][8] - Despite these challenges, ISRG maintains competitive advantages through global scale, utilization-driven economics, and a strong installed base [4] Company-Specific Developments - ISRG's management acknowledged slow tender processes and a preference for local vendors, which is creating pricing pressure on both capital systems and instruments and accessories [2][3][8] - The company is leveraging refurbished Xi systems and emphasizing per-procedure value to lower entry barriers and sustain customer ROI [4][8] Industry Context - Other U.S.-based robotic surgery device-makers, such as Stryker and Globus Medical, are also experiencing increased competition from local players in China [5] - Stryker is focusing on expanding its Mako SmartRobotics system in Asia, while facing intense price competition in the maturing orthopedic-robot market [6] - Globus Medical is accelerating its internationalization efforts and emphasizing technology depth to compete, but is also encountering pricing pressure from rapidly scaling local suppliers [7]