5 Best Medical Technology Stocks to Buy

4. IQVIA Holdings Inc. (NYSE:IQV)

Number of Hedge Fund Holders: 62

IQVIA Holdings Inc. (NYSE:IQV) is a North Carolina-based company that provides advanced analytics, technology solutions, and clinical research services to the life sciences industry in the Americas, Europe, Africa, and the Asia Pacific. It operates through three segments – Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. On October 26, IQVIA Holdings Inc. (NYSE:IQV) reported a Q3 non-GAAP EPS of $2.48 and a revenue of $3.56 billion, outperforming Wall Street estimates by $0.10 and $20 million, respectively. 

On December 6, Cowen analyst Charles Rhyee initiated coverage of IQVIA Holdings Inc. (NYSE:IQV) with an Outperform rating and a $251 price target. The analyst sees “multiple drivers of multiple expansion and share price outperformance” for IQVIA Holdings Inc. (NYSE:IQV), including an expanding total addressable market, better appreciation of its TAS segment, higher capital deployment, and a “more defensive/resilient performance in more recessionary environments.” 

According to Insider Monkey’s data, 62 hedge funds were bullish on IQVIA Holdings Inc. (NYSE:IQV) at the end of September 2022, compared to 53 funds in the prior quarter. Thomas Steyer’s Farallon Capital is the leading stakeholder of the company, with 3.20 million shares worth $581 million. 

L1 Capital International made the following comment about IQVIA Holdings Inc. (NYSE:IQV) in its Q3 2022 investor letter:

“During the quarter we made an initial investment in one new business, added to our investment in Booking Holdings (Booking), and reduced our investment in IQVIA Holdings Inc. (NYSE:IQV), using the proceeds to increase our investment in Danaher.

IQVIA and Danaher have overlapping drivers, with both companies being ‘picks and shovels’ businesses servicing the life sciences industry. We remain comfortable with both businesses and determined it was more appropriate to make the position size in each company more comparable. We would consider making our investment in both companies larger if valuations become even more compelling.”