Reasons to Add Fresenius Medical Stock to Your Portfolio Now

Fresenius Medical Care AG & Co. FMS is well-poised for growth on the back of strategic acquisitions and partnerships and a solid global foothold. However, a tough regulatory environment remains a concern.Shares of this Zacks Rank #2 (Buy) company have risen 25.1% year to date against the industry’s decline of 9.1%. The S&P 500 Index has increased 0.9% in the same time frame.The company, with a market capitalization of $16.64 billion, is one of the largest integrated providers of products and services for individuals undergoing dialysis following chronic kidney failure. Its bottom line is anticipated to improve 9.6% over the next five years. FMS’ earnings beat estimates in all the trailing four quarters, delivering an average surprise of 6.6%.Image Source: Zacks Investment ResearchReasons Favoring FMS’s GrowthStrategic Acquisitions & Partnerships: Fresenius Medical has leveraged strategic acquisitions and partnerships to drive its growth strategy. It acquired NxStage Medical for $30 per share, expecting earnings accretion within three years and annual pre-tax savings of $80 million to $100 million. The company’s 2025 growth strategy includes the merger of Fresenius Health Partners, InterWell Health, and Cricket Health to manage 270,000 patients with kidney disease and $11 billion in associated medical costs. Additionally, it expanded its home dialysis market through a distribution deal with JMS Co. Ltd. in Japan and extended agreements with DaVita and Aetna to enhance patient access to home hemodialysis and value-based care.Strong Global Foothold: Fresenius Medical has a strong global presence across North America, Europe (EMEA), the Asia Pacific, and Latin America, expanding through organic growth and strategic acquisitions. It entered the dialysis market in Israel and strengthened its foothold in India by acquiring an 85% stake in Sandor Nephro Services. The company also focuses on public-private partnerships to tap into new markets. Despite pandemic challenges, it has maintained steady organic growth, with significant contributions from EMEA, Asia Pacific, and Latin America, particularly in the third quarter of 2024.Strong Q1 Results: FMS exited the first quarter on a mixed note, with its earnings and revenues surpassing and missing their respective Zacks Consensus Estimate. Overall pricing momentum also supported growth in the Care Enablement segment.Per management, during the first quarter, the FME25 transformation program continued its positive momentum, delivering EUR 68 million additional sustainable savings while related one-time costs, treated as special items, amounted to EUR 28 million. The company confirmed its full-year target of around EUR 180 million in additional annual savings, totaling EUR 750 million by 2025-end.The company’s continued divestment of its non-core and dilutive assets appears promising, as it will help focus on its core and growing categories, while also boosting its cash resources.A Factor That May Offset FMS’s GainsTough Regulatory Environment: Fresenius Medical operates in a highly regulated environment, facing strict legal and antitrust requirements across countries. Non-compliance can result in severe penalties, loss of certifications, product recalls, or even business restrictions. Regulatory changes, especially in reimbursement policies, could impact its business model and strategy. Additionally, international exposure presents challenges in enforcing trade receivables, with some countries' debt issues posing potential risks. While short-term regulatory risks remain low, they could become a medium-term concern.Estimate TrendThe Zacks Consensus Estimate for 2025 revenues is pegged at $21.84 billion, indicating 4.4% year-over-year growth. The consensus mark for earnings is pinned at $2.16 per share, implying growth of 30.1% from the year-ago level. The earnings estimates have improved 15 cents in the past 90 days.Other Key PicksSome other top-ranked stocks in the broader medical space that have announced quarterly results are CVS Health Corporation CVS, Integer Holdings Corporation ITGR and AngioDynamics ANGO.CVS Health, carrying a Zacks Rank of 2, reported first-quarter 2025 adjusted EPS of $2.25, beating the Zacks Consensus Estimate by 31.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Revenues of $94.59 billion outpaced the consensus mark by 1.8%. CVS Health has a long-term estimated growth rate of 11.4%. Its earnings surpassed estimates in each of the trailing four quarters, with an average surprise of 18.1%.Integer Holdings reported first-quarter 2025 adjusted EPS of $1.31, beating the Zacks Consensus Estimate by 3.2%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%. It currently sports a Zacks Rank of 1.Integer Holdings has a long-term estimated growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.AngioDynamics, currently sporting a Zacks Rank #1, reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a 13-cent loss. Revenues of $72 million beat the Zacks Consensus Estimate by 2%.ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 Composite’s 10.5% growth. AngioDynamics’ earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 70.9%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngioDynamics, Inc. (ANGO): Free Stock Analysis Report CVS Health Corporation (CVS): Free Stock Analysis Report Fresenius Medical Care AG & Co. KGaA (FMS): Free Stock Analysis Report Integer Holdings Corporation (ITGR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks