Core Insights - BrightSpring Health Services, Inc. (BTSG) reported quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.34 per share, but showing an increase from $0.22 per share a year ago, resulting in an earnings surprise of -1.49% [1] - The company achieved revenues of $3.55 billion for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 5.85% and up from $3.05 billion year-over-year [2] - BrightSpring Health Services has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates four times in the same period [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $3.31 billion, and for the current fiscal year, it is $1.37 on revenues of $14.56 billion [7] Industry Context - The Medical Services industry, to which BrightSpring belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact BrightSpring's stock performance [5][6]

HealthEquity, Inc. (NASDAQ:HQY) is among the 20 Best Investments in 2026. Jefferies Highlights HealthEquity, Inc. (HQY) as Defensive Play Amid Healthcare, Tech Exposure HealthEquity, Inc. (NASDAQ:HQY) is given eleventh position on our list of best investments. TheFly reported on February 19 that Jefferies lowered its price target for HQY to $108 from $120 and maintained a Buy rating. The firm noted that pre-released Q4 results showed solid growth, with HSA accounts up 6.9% and assets increasing 13.6% ye ...

On February 12, 2026, Wasatch Advisors LP disclosed in an SEC filing that it reduced its position in Nova Ltd. (NASDAQ:NVMI) by 603,907 shares in the fourth quarter, an estimated $194.15 million trade based on quarterly average pricing. What happened According to a recent SEC filing, Wasatch Advisors sold 603,907 shares of Nova in the fourth quarter of 2025. The estimated transaction value was $194.15 million, based on the average closing price for the period. The quarter-end value of the NVMI position f ...

EMERGING TECH RESEARCH Healthtech Public Comp Sheet and Valuation Guide Q4 2025 Institutional Research Group Brian Wright Lead Research Analyst, Healthcare brian.wright@pitchbook.com pbinstitutionalresearch@pitchbook.com Published on February 2, 2026 | Contents | | | --- | --- | | Key takeaways | 2 | | Stock returns | 4 | | Revenue | 5 | | EBITDA | 7 | PitchBook clients can access the full Excel data pack for this report via the Research Center on the PitchBook Platform. Disclaimer: Any -0 values are negati ...

Core Viewpoint - Investors in the Medical Services sector may find Bausch + Lomb (BLCO) and HealthEquity (HQY) to be potential stocks for consideration, with BLCO appearing more attractive to value investors based on various metrics [1] Valuation Metrics - Bausch + Lomb has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to HealthEquity, which has a Zacks Rank of 3 (Hold) [3] - The forward P/E ratio for BLCO is 21.49, while HQY has a forward P/E of 21.91, suggesting BLCO may be slightly more undervalued [5] - BLCO's PEG ratio is 1.00, compared to HQY's PEG ratio of 1.04, indicating BLCO's expected earnings growth is more favorable [5] - BLCO has a P/B ratio of 0.94, significantly lower than HQY's P/B of 3.46, further supporting BLCO's valuation as more attractive [6] - Based on these valuation metrics, BLCO holds a Value grade of B, while HQY has a Value grade of C, reinforcing BLCO's position as the superior value option [6]

Core Insights - The Great Healthcare Plan aims to reduce prescription drug prices, lower insurance premiums, and increase transparency in the healthcare industry [1][11] - The plan shifts from corporate subsidies to direct payments to consumers, redistributing profit pools across the healthcare sector [2][10] Winners - Retail pharmacies, particularly chains like Walmart (WMT), will benefit from the proposal to sell more prescription drugs over-the-counter (OTC), driving foot traffic and sales [4] - Fintech healthcare companies, such as HealthEquity (HQY), will gain from direct-to-consumer subsidies, enhancing consumer choice and transparency [5] - Big pharmaceutical companies that have entered into Most-Favored-Nation (MFN) agreements, like Merck (MRK) and Johnson & Johnson (JNJ), will enjoy regulatory certainty and potential tariff relief [6] Losers - Pharmacy Benefit Managers (PBMs) are targeted by the plan, which aims to eliminate kickbacks, posing significant risks to companies like UnitedHealth Group (UNH) and Cigna (CI) [7] - Traditional health insurers, such as Centene (CNC) and Molina (MOH), face threats to their revenue models due to the plan's shift to direct payments to individuals [8] ETF Portfolio Recommendations - Investors are advised to consider ETFs that focus on diversified drugmakers and retail providers while avoiding those heavily invested in PBMs and traditional insurers [11] - Suggested ETFs include: - iShares U.S. Pharmaceuticals ETF (IHE) with $968 million in assets, focusing on 55 U.S. companies in the pharmaceutical sector [12] - State Street Consumer Staples Select Sector SPDR ETF (XLP) with $16.26 billion in assets, providing exposure to retail medicine providers [14] - iShares U.S. Medical Devices ETF (IHI) with $4.04 billion in assets, offering a defensive hedge against drug pricing battles [16] ETFs to Avoid - iShares U.S. Healthcare Providers ETF (IHF) with $750.5 million in assets, focusing on health insurance and specialized treatment providers [17] - State Street SPDR S&P Health Care Services ETF (XHS) with $101.4 million in assets, targeting healthcare service providers [19]

Economic Indicators - US housing starts unexpectedly fell by 4.6% month-over-month to a 5.5-year low of 1.246 million, weaker than expectations of 1.330 million [1] - US building permits fell by 0.2% to 1.412 million, which was stronger than expectations of 1.350 million [1] - US nonfarm payrolls rose by 50,000 in December, weaker than expectations of 70,000, while November's payrolls were revised lower to 56,000 from 64,000 [2] - The December unemployment rate fell by 0.1% to 4.4%, better than expectations of 4.5% [2] Stock Market Performance - The S&P 500 Index closed up by 0.65%, reaching a new all-time high, supported by a resilient US labor market [5][6] - Chipmakers and data storage companies saw significant gains, with Sandisk closing up more than 12% and Intel up more than 10% [15] - Home builders and suppliers rallied after President Trump announced plans for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds, with Builders FirstSource closing up more than 12% [16] - Power producers also experienced gains, with Vistra closing up more than 10% following electricity deals with Meta Platforms [17] Consumer Sentiment and Inflation Expectations - The University of Michigan's US January consumer sentiment index rose by 1.1 to 54.0, stronger than expectations of 53.5 [6] - January 1-year inflation expectations remained unchanged at 4.2%, while 5-10 year inflation expectations rose to 3.4% from 3.2% in December [7] Interest Rates and Federal Reserve Commentary - The 10-year T-note yield rose to a 4-week high of 4.203%, influenced by rising inflation expectations and hawkish comments from Atlanta Fed President Raphael Bostic [10][11] - The markets are currently discounting a 5% chance of a 25 basis point rate cut at the upcoming FOMC meeting [8] International Market Trends - European stock markets, including the Euro Stoxx 50, reached new record highs, with a 1.58% increase [9] - China's Shanghai Composite climbed to a 10.5-year high, closing up by 0.92% [9]

Group 1: Housing Market - US housing starts unexpectedly fell by 4.6% month-over-month to a 5.5-year low of 1.246 million, weaker than expectations of 1.330 million [1] - October building permits, a proxy for future construction, fell by 0.2% to 1.412 million, stronger than expectations of 1.350 million [1] - Home builders and home building suppliers are rallying after President Trump called for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to lower long-term rates and spur housing demand [4][13] Group 2: Labor Market - US nonfarm payrolls rose by 50,000 in December, weaker than expectations of 70,000, with November's payrolls revised lower to 56,000 from 64,000 [2] - The December unemployment rate fell by 0.1% to 4.4%, indicating a stronger labor market than the expected 4.5% [2] - Average hourly earnings rose more than expected, supporting the notion of a resilient labor market [5] Group 3: Stock Market Performance - US stock indexes are climbing on optimism regarding the economic outlook, supported by signs of a resilient labor market and mixed housing news [5] - The S&P 500 Index is up by 0.38%, the Dow Jones Industrials Index is up by 0.21%, and the Nasdaq 100 Index is up by 0.59% [6] - Home builders and building suppliers are seeing significant gains, with Builders FirstSource up more than 7% and other major builders up more than 4% [13] Group 4: Inflation and Interest Rates - The University of Michigan's January 1-year inflation expectations remained unchanged at 4.2%, while the 5-10 year expectations rose to 3.4% from 3.2% [7] - Rising inflation expectations are bearish for T-notes, with the 10-year breakeven inflation rate reaching a 1.5-month high of 2.296% [11] - The markets are discounting a 5% chance of a 25 basis point rate cut at the FOMC's next meeting on January 27-28 [7]

Core Viewpoint - Goldman Sachs has launched a new investment portfolio, GSXUPROD, consisting of non-tech companies that have integrated AI into their workflows to reduce costs and improve profit margins. The firm believes that this portfolio has the potential for higher earnings per share changes compared to the Russell 1000 and S&P 500 indices due to AI adoption and productivity enhancements [1][3][7]. Group 1: AI Adoption in Various Industries - The adoption rate of AI in enterprises has reached 37%, with large companies showing a 13% adoption rate based on stricter definitions [5]. - Financial institutions are deploying AI to enhance operational efficiency across various applications, including fraud detection and customer interaction [8]. - Retailers and warehouse operators are utilizing AI for optimizing customer experiences, supply chain logistics, and internal operations, leading to significant productivity improvements [14][15]. Group 2: Specific Company Initiatives - JPMorgan Chase emphasizes its pre-existing AI expertise and uses AI to control workforce growth while maintaining cost discipline [9]. - Bank of America views AI as "augmented intelligence," with its Erica platform handling 2 million customer interactions daily [11]. - Amazon is heavily investing in AI across multiple domains, including AWS AI services and custom chips [14]. - HCA Healthcare is implementing AI to improve revenue cycle management and enhance clinical documentation [25]. - Yum Brands has deployed AI in over 28,000 restaurants to provide operational guidance and improve efficiency [27]. Group 3: Performance and Market Outlook - The GSXUPROD portfolio has underperformed the market this year, even when excluding the seven tech giants, but still shows potential for higher earnings per share changes due to AI integration [7]. - Goldman Sachs believes that the long-term investment opportunity lies in AI productivity beneficiaries, which will be crucial in 2026 [3].

Core Insights - LifeMD, Inc. reported a quarterly loss of $0.1 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.06, representing an earnings surprise of -66.67% [1] - The company posted revenues of $60.17 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 3.42%, but showing an increase from $53.39 million year-over-year [2] - LifeMD shares have declined approximately 6.5% year-to-date, contrasting with the S&P 500's gain of 14.5% [3] Financial Performance - Over the last four quarters, LifeMD has surpassed consensus EPS estimates two times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $62.85 million, and for the current fiscal year, it is -$0.15 on revenues of $253.06 million [7] Market Outlook - The company's earnings outlook is mixed, with a Zacks Rank of 3 (Hold), indicating expected performance in line with the market [6] - The Medical Services industry, to which LifeMD belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8] Comparisons with Peers - HealthEquity, another company in the same industry, is expected to report quarterly earnings of $0.90 per share, reflecting a year-over-year increase of 15.4% [9] - HealthEquity's anticipated revenues are $319.96 million, which is a 6.5% increase from the previous year [10]