Why Shares in GE Healthcare Looked Sick This Week
Shares in GE Healthcare (NASDAQ: GEHC) were down 8.4% for the week as of Friday at 10 a.m. ET, according to data provided by S&P Global Market Intelligence. The move comes after the company's disappointing first-quarter earnings report.
Not only did the company miss Wall Street expectations for revenue ($4.65 billion compared to the analyst consensus of $4.8 billion), but there was also mixed margin performance in its segments.
The case for the stock rests on the idea that management can accelerate its growth now that it's a stand-alone company, not least through new product introductions (NPIs), mergers and acquisitions, improving its pricing and product platforming strategy, and developing technologies such as theranostics. The latter combines GE Healthcare's leadership in imaging with its pharmaceutical diagnostics and therapeutics so patients can be monitored and drugs can be precisely targeted to things like cancerous cells.
Source Fool.com
