Core Insights - Cencora (COR) is expected to report its third-quarter fiscal 2025 results on August 6, with a history of earnings surprises, averaging 6% over the last four quarters [1][2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for Cencora's revenues is $80.33 billion, reflecting an 8.2% increase from the same quarter last year [2] - The consensus estimate for earnings is $3.78 per share, indicating a 13.2% improvement year-over-year [2] Segment Performance - The U.S. Healthcare Solutions segment is driving growth, with revenues of $68.3 billion in the second quarter, an 11% year-over-year increase, supported by strong demand for specialty medicines [3][4] - Specialty products are a key growth area, with operating income in the U.S. segment rising 23% in the fiscal second quarter, despite a 10% sequential decline in GLP-1 revenue due to seasonal factors [4][10] - The International Healthcare Solutions segment showed modest performance, generating $7.2 billion in revenue last quarter, with a 1% increase reported and a 17% decline in operating income [6][10] Strategic Developments - Cencora's acquisition of Retina Consultants of America (RCA) is expected to enhance the company's margin profile, with RCA's impact becoming more visible as integration progresses [7] - The company has raised its full-year operating income outlook for the U.S. Healthcare Solutions segment, anticipating continued benefits from strong first-half performance [3] Earnings Outlook - The model does not predict an earnings beat for Cencora this quarter, with an Earnings ESP of 0.00% [11]

Core Insights - Beijing Harmony Hospital and Alibaba Damo Academy have formed a strategic partnership to explore multi-disease AI screening services based on Damo Academy's "One Scan, Multiple Checks" medical AI technology [1] Group 1 - The collaboration will focus on promoting digestive tumors and chronic disease screening using "plain CT + AI" technology [1]

Company Performance - Akebia Therapeutics (AKBA) has returned 94% year-to-date, significantly outperforming the average return of -7.8% for the Medical sector [4] - The Zacks Consensus Estimate for AKBA's full-year earnings has increased by 34.4% over the past three months, indicating a stronger analyst sentiment and improving earnings outlook [4] - Akebia Therapeutics holds a Zacks Rank of 1 (Strong Buy), suggesting it has the characteristics to outperform the market in the near term [3] Industry Comparison - Akebia Therapeutics is part of the Medical - Drugs industry, which consists of 154 individual stocks and currently ranks 90 in the Zacks Industry Rank [6] - The Medical - Drugs industry has gained an average of 3.6% year-to-date, indicating that AKBA is performing better than its industry peers [6] - In contrast, Alignment Healthcare (ALHC), another outperforming stock in the Medical sector, belongs to the Medical Services industry, which has returned -7.7% year-to-date and ranks 85 [6]

Core Insights - BrightSpring Health Services, Inc. (BTSG) reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and showing a significant increase from $0.10 per share a year ago, resulting in an earnings surprise of +15.79% [1] - The company achieved revenues of $3.15 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.40%, and up from $2.73 billion in the same quarter last year [2] - BrightSpring Health Services has outperformed the S&P 500, with shares increasing approximately 21.3% since the beginning of the year compared to the S&P 500's gain of 7.8% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $3.16 billion, and for the current fiscal year, it is $0.90 on revenues of $12.29 billion [7] - The estimate revisions trend for BrightSpring Health Services was favorable ahead of the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Medical Services industry, to which BrightSpring belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Company Performance - Avantor, Inc. reported quarterly earnings of $0.24 per share, missing the Zacks Consensus Estimate of $0.25 per share, and down from $0.25 per share a year ago, representing an earnings surprise of -4.00% [1] - The company posted revenues of $1.68 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.38%, but down from year-ago revenues of $1.7 billion [2] - Over the last four quarters, Avantor has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - Avantor shares have lost approximately 36.2% since the beginning of the year, contrasting with the S&P 500's gain of 7.8% [3] - The current Zacks Rank for Avantor is 5 (Strong Sell), indicating expectations for the stock to underperform the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.27 on revenues of $1.7 billion, and for the current fiscal year, it is $1.03 on revenues of $6.69 billion [7] - The outlook for the Medical Services industry, where Avantor operates, is currently in the top 35% of over 250 Zacks industries, suggesting potential for better performance compared to lower-ranked industries [8]

Company Performance - Organon (OGN) closed at $9.70, reflecting a -3.39% change from the previous day's closing price, underperforming the S&P 500's daily loss of 0.37% [1] - The stock has decreased by 1.08% over the past month, lagging behind the Medical sector's loss of 0.88% and the S&P 500's gain of 2.68% [1] Earnings Forecast - Organon is expected to release earnings on August 5, 2025, with a predicted EPS of $0.94, indicating a 16.07% decline compared to the same quarter last year [2] - Revenue is anticipated to be $1.55 billion, reflecting a 3.35% decrease from the same quarter last year [2] Full Year Estimates - For the full year, analysts project earnings of $3.83 per share and revenue of $6.24 billion, marking changes of -6.81% and -2.48% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Organon indicate short-term business trends, with positive revisions suggesting analysts' confidence in the company's performance [4] Zacks Rank and Valuation - Organon currently holds a Zacks Rank of 2 (Buy), with a consensus EPS projection that has increased by 0.55% in the past 30 days [6] - The company is trading at a Forward P/E ratio of 2.62, significantly lower than the industry average of 15.82, indicating a potential discount [7] Industry Context - The Medical Services industry, part of the Medical sector, has a Zacks Industry Rank of 94, placing it in the top 39% of over 250 industries [8]

Core Viewpoint - AMN Healthcare Services (AMN) is expected to report a year-over-year decline in earnings and revenues for the quarter ended June 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $0.17 per share, reflecting a significant year-over-year decrease of 82.7% [3]. - Revenues are projected to be $652.49 million, which is an 11.9% decline from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 8.43% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for AMN is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +0.58% [12]. Earnings Surprise Prediction - A positive Earnings ESP reading suggests a potential earnings beat, but the current Zacks Rank of 4 indicates a lower likelihood of this outcome [10][12]. - Historical performance shows that AMN has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +136.84% in the most recent quarter [13][14]. Industry Comparison - Charles River Laboratories (CRL), another player in the medical services industry, is expected to report earnings of $2.5 per share, down 10.7% year-over-year, with revenues of $982.87 million, a 4.2% decline [18][19]. - CRL has a positive Earnings ESP of +0.11% and a Zacks Rank of 3, indicating a higher likelihood of beating consensus EPS estimates [20].

Core Viewpoint - The implementation of the Medical and Health Strong Foundation Project aims to enhance healthcare accessibility by promoting the distribution of urban medical resources to county hospitals and grassroots healthcare institutions, ultimately improving the quality of medical services available to the public [1][3]. Group 1: Project Implementation and Goals - The Medical and Health Strong Foundation Project will improve the equipment and facilities of grassroots medical institutions, enhancing the conditions for medical treatment [1]. - By the end of 2027, the project aims for comprehensive coverage of tightly-knit county medical communities [1]. - Higher-level hospitals will send qualified medical professionals to provide services at the grassroots level, thereby strengthening healthcare delivery [1]. Group 2: Financial Investment and Resource Allocation - In the past two years, the central government has invested nearly 900 million yuan to upgrade medical equipment in township hospitals in central and western regions [3]. - Over 90% of township hospitals and community health service centers have met service capacity standards, providing over half of the national diagnostic services and most basic public health services [3]. Group 3: County Medical Sub-centers - Various regions, including Sichuan and Hunan, are establishing county medical sub-centers in township hospitals to handle common and frequently occurring diseases, reducing the need for patients to travel to county hospitals [4][6]. - Sichuan has planned the construction of 400 county medical sub-centers during the 14th Five-Year Plan, with existing centers equipped with advanced medical devices [6]. Group 4: Emergency Medical Services - Hunan has allocated 100 million yuan annually starting in 2023 to support the establishment of county medical sub-centers, enhancing emergency response capabilities [10]. - The first county medical sub-center in Hunan has implemented a chest pain treatment unit to meet the urgent medical needs of over 100,000 residents [10]. Group 5: Talent Recruitment and Retention - Talent shortages in grassroots hospitals are being addressed through various measures, including "county hiring for township use" and the establishment of talent pools [11][17]. - Since 2021, Chongqing has dispatched over 3,000 medical personnel from district and county hospitals to work in township hospitals [13]. - Zhejiang has created a "talent pool" system to streamline recruitment and provide incentives for medical staff working in rural areas [17].

Core Viewpoint - The market anticipates Cencora (COR) will report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended June 2025 [1][3]. Earnings Expectations - Cencora is expected to post quarterly earnings of $3.78 per share, reflecting a year-over-year increase of +13.2% [3]. - Revenues are projected to reach $80.33 billion, representing an 8.2% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 0.39% higher in the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Cencora is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.49% [12]. Earnings Surprise Prediction - A positive Earnings ESP reading suggests a likely earnings beat, especially when combined with a Zacks Rank of 2 (Buy) [10][12]. - Cencora has a Zacks Rank of 2, indicating a strong likelihood of exceeding the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Cencora exceeded the expected earnings of $4.08 per share by delivering $4.42, resulting in a surprise of +8.33% [13]. - The company has beaten consensus EPS estimates in each of the last four quarters [14]. Industry Comparison - Another player in the Zacks Medical Services industry, Organon (OGN), is expected to report earnings of $0.94 per share, indicating a year-over-year decline of -16.1% [18]. - Organon's revenues are projected to be $1.55 billion, down 3.4% from the previous year [18]. - Despite a stable consensus EPS estimate, Organon has a positive Earnings ESP of +5.32% and a Zacks Rank of 2, suggesting it may also beat consensus estimates [19].

The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Is CVS Health (CVS) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question. CVS Health is one of 983 companies in the Medical group. The Medical group currently sits at #7 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measu ...