Shares in continuous glucose monitoring system (CGM) manufacturer Senseonics Holdings, Inc. (IMPORTANCE) are up 254.6% over the past six months and 680% over the past nine months to close yesterday’s trading session at $ 3.12. The gains were primarily driven by interest from r / wallstreetbets subreddit and investor optimism about the announcement from positive clinical results from the PROMISE study.
However, Wall Street analysts expect the stock to hit $ 0.88 in the near future, which is on a potential decrease of 71.8%. That expectation is justified as the sky-high valuation is inconsistent with the dire growth outlook. In terms of forward EV / S and P / S, SENS is currently trading at 96.43x and 96.95x, respectively, which is much higher than the industry averages of 7.10x and 7.86x. The EPS is expected to remain negative in 2021 and 2022. So we think it’s advisable to avoid SENS now.
The global diabetic care market is expected to be beat $ 41.71 billion by 2027, according to a report from Emergen Research. More sedentary lifestyles amid remote working conditions and an aging population have led to a significant increase in the number of diabetics. According to SingleCare, roughly 700 million adults diabetes is expected worldwide by 2045. With this in mind, it might make sense to invest in shares of companies dominating the diabetes care market Eli Lilly and Company (LLY), Abbott Laboratories (ABT) and Novo Nordisk A / S (NVO). Because of their fundamental strength and consistent innovation, all three are well positioned to meet the growing demand for diabetics Nursing Solutions.
Click here to view our Health Sector Report for 2021
Eli Lilly and Society (LLY)
LLY is a pharmaceutical company that discovers, develops, manufactures and markets human pharmaceutical products worldwide. The portfolio includes diabetes and other endocrinology products such as Baqsimi, Basaglar, Forteo and Humalog. LLY is based in Indianapolis, Indiana.
The company’s revenue for the first quarter ended March 31, 2021 grew 16.1% year over year to $ 6.81 billion. LLY’s non-GAAP net income for the quarter was $ 1.70 billion, up 15.7 percent year over year. . Non-GAAP earnings per share were $ 1.87, up 16.1% from the same period last year.
For the quarter ended September 30, 2021, analysts expect LLY’s earnings per share to rise 22.7% year over year to $ 1.89. The company’s revenue is expected to grow 15.4% year over year to $ 6.65 billion for the quarter ended June 30, 2021.
LLY announced on July 6th that the Phase III study EMPEROR-Preserved had reached its primary endpoint and demonstrated a significant risk reduction with Jardiance for, among other things, combined cardiovascular death. With approval, Jardiance could become the first and only clinically proven therapy to improve outcomes for the full spectrum of heart failure patients regardless of ejection fraction. The stock is up 58.3% over the past nine months, closing yesterday’s trading session at $ 235.82.
It comes as no surprise that LLY has an overall rating of B which is on par with the purchase in ours POWR ratings System. The POWR ratings rate stocks based on 118 different factors, each with its own weighting.
It has the grade B for quality. In addition to the POWR ratings just highlighted, we also rated LLY for growth, sentiment, value, stability and dynamism. click Here to see all LLY ratings.
LLY ranks 12th out of 224 shares in the Medicine pharmaceuticals Industry.
Abbott Laboratories (ABT)
As a leading player in healthcare, ABT focuses on cardiovascular, diabetes care, diagnostics, neuromodulation, nutrition and medicine. The Abbott Park, Illinois, The company operates in four segments: Established Pharmaceuticals, Diagnostic Products, Nutritional Products, and Medical Devices.
ABT is expected to announce its second quarter financial results on July 22nd. The company’s net revenue increased 35.3% year over year to $ 10.46 billion for the first quarter ended March 31, 2021. Net income was $ 1.79 billion, an increase of 217.9% over the same period last year. Adjusted earnings per share were $ 1.32, up 103.1% year over year.
Analysts expect ABT’s earnings per share and revenue to increase 19.2% and 13.5% year over year to $ 4.35 and 39.29 billion, respectively, in fiscal 2021. In each of the past four quarters, consensus EPS estimates have been exceeded.
ABT announced on June 30th that its XIENCE family of stents has received US Food and Drug Administration approval for one-month DAPT labeling for patients at high risk of bleeding in the United States. As a result, the company could see increased demand for its solution. The stock gained 29.7% over the past year, closing yesterday’s trading session at $ 119.87.
ABT’s good prospects are also reflected in the POWR ratings. The stock has an overall rating of B, which is equivalent to buying in our proprietary rating system.
It has a grade of A for growth and a grade of B for value, quality and stability. click Here to view the additional POWR ratings for ABT (Momentum and Sentiment).
ABT is in 11th place in the medical-pharmaceutical industry.
Novo Nordisk A / S (NGO)
NVO, headquartered in Bagsvaerd, Denmark, is a global healthcare company specializing in diabetes. The company operates in two segments: diabetes and obesity treatment; and biopharmaceuticals. It offers a range of products including NovoLog / NovoRapid, NovoLog Mix / NovoMix and Prandin / NovoNorm.
For the first quarter ended March 31, 2021, NVO’s net sales were DKK 33.80 billion (US $ 5.37 billion) compared to DKK 33.89 billion (US $ 5.38 billion) in the same quarter of the previous year. However, the company’s net income rose 6.1% year over year to DKK 12.62 billion (US $ 2 billion). Earnings per share rose 7.9% year over year to DKK 5.45 (USD 0.87).
NVO revenue is expected to grow 6.5% to $ 5.35 billion in the quarter ended September 30, 2021. The company’s earnings per share are projected to be $ 0.77 for the quarter ended June 30, 2021, a 6.9% year-over-year increase.
The company announced on June 4, 2021 that the US FDA has approved Wegovy for chronic weight management. Wegovy is the first and only once-weekly therapy with glucagon-like-peptide-1 (GLP-1) receptor agonists approved for weight loss in obese patients. The stock rebounded 27.1% over the past three months, closing yesterday’s trading session at $ 86.26.
NVO’s POWR ratings are in line with this promising outlook. The stock has an overall rating of B, which is equivalent to buying in our proprietary rating system. It has grade A for stability and quality and grade B for value. click Here to see NVO’s ratings for growth, sentiment and momentum as well.
NVO ranks 10th in the same industry.
Click here to view our Health Sector Report for 2021
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LLY stock traded at $ 234.67 per share Thursday morning, down $ 1.15 (-0.49%). Since the beginning of the year, LLY is up 40.19%, compared to a 15.86% increase in the reference index S&P 500 over the same period.
Ananyo’s passionate interest in capital markets, asset management and financial regulatory issues led him to pursue a career as an investment analyst. Its goal is to educate individual investors by making complex financial topics easy to understand. More…
