Health & Fitness
Health and Fitness
Health and Fitness
Sat, June 5, 2010
Fri, June 4, 2010
Thu, June 3, 2010 
CHICAGO--([ BUSINESS WIRE ])--Today, Zacks Equity Research discusses the Health Care Industry, including Molina Healthcare (NYSE: [ MOH ]), Unisys Corporation (NYSE: [ UIS ]), BioScrip, Inc. (Nasdaq: [ BIOS ]) and ZOLL Medical Corporation (Nasdaq: [ ZOLL ]).
A synopsis of todaya™s Industry Outlook is presented below. The full article can be read at [ http://www.zacks.com/stock/news/35035/Health+Care+Stock+Review+%26amp%3B+Outlook+-+June+2010 ].
We are positive on Molina Healthcare (NYSE: [ MOH ]), on which we have an Outperform rating. The company performed impressively in the first quarter of 2010, beating the Zacks Consensus Earnings Estimate by 23 cents per share. The better-than-expected results in the quarter were driven by higher operating revenues coupled with lower medical care costs on a per-member per-month (PMPM) basis because of a mild flu season.
Furthermore, there was an approximately 14% year-over-year rise in enrollment in the quarter. Additionally, the acquisition of the Health Information Management business of Unisys Corporation (NYSE: [ UIS ]) should add value to Molinaa™s Medicaid health plan business. We believe that the current price represents an attractive entry point for long-term investors.
Health technology holds the promise of improved operating efficiencies for many parts of the healthcare industry, hospitals included. However, in the short term, those who stand to benefit most from the stimulus are companies whose business models are based on information technology platforms.
One such company is BioScrip, Inc. (Nasdaq: [ BIOS ]), a specialty pharmacy services provider and pharmacy benefit manager. The company operates two interrelated business segments, namely Specialty Services, which consists of specialty pharmacy distribution and clinical management services, and Traditional Pharmacy Services (previously referred to as PBM Services), which consists of pharmacy benefit management and traditional mail services.
The companya™s diversified product mix across several key disease areas including immunology, multiple sclerosis and oncology should drive growth. The oral oncology business continues to show robust growth and should remain a strong part of the companya™s business. We are pleased to see that the company is working on expanding its national reach and local presence, and is adding infusion capacity in markets which have a large number of members.
We believe BioScrip is well-positioned to benefit from future healthcare reform initiatives like broader insurance coverage, the approval of a pathway for bio-similars and incentives supporting the utilization of information technology systems. The implementation of these initiatives is in line with the companya™s strategy and should bode well for its future.
Another company with an Outperform rating is ZOLL Medical Corporation (Nasdaq: [ ZOLL ]). We like the companya™s wide range of products and significant international presence. The company has made multiple acquisitions in the past which have aided growth, and is looking out for more such opportunities.
The company is a leading player in external defibrillators market, which is worth over $1 billion annually on a global basis. ZOLL Medical has innovated a wide range of product features that have become the standard of care in the external defibrillator industry. The company is expanding its offerings to sustain growth.
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