From Nasdaq: 2024-04-25 09:35:00

The first quarter 2024 earnings season for healthcare stocks shows promising growth drivers like increased patient volumes and demand for cost-effective healthcare plans. Higher expenses due to utilization influenced results, with certain HMOs expecting membership declines. Technological innovations could impact margins in the short term, but select stocks are poised to outperform earnings forecasts.

The medical sector is projected to see a 7.6% earnings decline but a 6.3% revenue rise for the first quarter. The aging population and demand for health services boost sales for healthcare companies. Increased patient visits and elective surgeries lifted first-quarter volumes, though rising utilization may have led to higher medical costs.

Some healthcare companies implemented premium rate hikes to counter medical cost trends, benefiting from product developments and increased memberships. Technological advances optimized services, reduced costs, and improved patient experiences. Labor shortage improvements in the first quarter also provided relief to healthcare players.

Identified healthcare stocks with potential for an earnings beat include Cigna Group, HCA Healthcare, Avantor, and Tenet Healthcare. Factors like solid organic growth, premium rate hikes, and growing patient volumes position these companies for better-than-expected first-quarter earnings. Positive Earnings ESP and Zacks Rank make these stocks strong investment options for exceeding expectations.



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