Retain IQVIA Holdings stock for long-term growth potential

From Nasdaq: 2024-11-28 12:05:00

IQVIA Holdings Inc. benefits from market leadership, data-driven innovation, and global expansion, but faces pricing pressure. With an expected EPS growth rate of 9.6%, earnings for 2024 and 2025 are projected to grow by 9% and 6.9%, respectively. IQVIA’s global reach and extensive services position it as a key player in the healthcare analytics sector.

Despite its strengths, IQVIA faces challenges from large pharmaceutical companies applying pricing pressure. Clients engage in tough price negotiations due to budget constraints and economic uncertainties. The company does not plan to pay cash dividends on common stock, affecting investor decisions. IQVIA’s Zacks Rank #3 (Hold) suggests cautious optimism in the market.

IQVIA’s innovative use of technology and data analytics, particularly through its “IQVIA CORE” platform, enhances its competitiveness. The company focuses on accelerating drug development, optimizing clinical trials, and streamlining commercial strategies. However, balancing competitive pricing with profitability remains a key challenge for IQVIA in the evolving healthcare landscape.

For investors seeking growth opportunities, stocks like Parsons (PSN) and Qifu Technology (QFIN) offer potential. Parsons has a Zacks Rank of 1 (Strong Buy) with a long-term earnings growth expectation of 18.6%. Qifu Technology, also with a Zacks Rank of 1, has a long-term earnings growth expectation of 20.9%. Both companies have delivered positive earnings surprises, making them attractive options in the business services sector.

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Read more at Nasdaq: Why You Should Retain IQVIA Holdings Stock in Your Portfolio Now