Solventum Stock Price – Should You Buy?

Find out if Solventum stock price is worth buying or selling based on recent updates and key money numbers. Read on to see how (SOLV) scores on certain investment factors and figure out if it fits what you’re looking for in an investment.

Latest Solventum Corp Stock News

As of July 29, 2024, Solventum Corp had a market value of $10.0 billion placing it in the top 14% of Healthcare Facilities & Services companies.

As of now, Solventum’s stock price has a price-earnings ratio of 7.7. The company’s trailing 12-month revenue stands at $8.2 billion with a % profit margin. The most recent year-over-year quarterly sales growth was 0.2%. Experts predict adjusted earnings to hit $6.240 per share in the ongoing fiscal year. At present, Solventum Corp doesn’t pay out a dividend.

Our basic view on the healthcare facilities (hospitals) industry for the next year is middle-of-the-road. The wide rollout of vaccines in early 2021 is helping bring down Covid-19 numbers. This will ease some of the strain hospitals have been under with staff shortages and lack of protective gear. Also, the number of optional procedures, a big source of profits, will keep bouncing back as patients feel more at ease going back to the doctor’s appointments they put off and getting checked out again.

At the same time, Covid-19 and the world’s response to it recently caused a huge rise in U.S. joblessness. We think the high unemployment (5.8% as of May 2021) will hurt health facilities by –

1. Baking bad debt expenses and charity care go up and
2. By reducing elective procedure numbers for people without insurance.

Still, hospitals might not feel the effects of a recession as much as other businesses. People will always need medical care after all. But there’s a downside too. The Hospital Price Transparency rule kicked in on January 1, 2021. This rule makes hospitals share what they charge for common services. It’s caused some bad press because many hospitals are trying to hide this info on their websites. To help with Covid-19, the government has passed several stimulus bills. These bills gave $178 billion to healthcare providers through the Provider Relief Fund. They also made changes to Medicare and Medicaid. This includes paying for uninsured patients boosting Medicare rates for COVID-19 cases by 20%, and increasing reimbursements across the board. These changes should give hospitals a big helping hand.

The Earnings Estimate Revisions Grade

The Earnings Estimate Revisions Grade considers how much a company’s earnings surprise its expectations in its last two reported fiscal quarters. Surprises often lead to more surprises or at least continued sales growth (the opposite holds true too). A Solventum stock price screen tracks companies with the highest earnings estimate revisions (i.e., the best grades) and has a 23.3% backtested yearly return since it began, while a sample screen following those with the worst revisions has a backtested yearly return since it started off less than 5%.

Buying stocks at a low price and selling them at a high price is key to successful stock investing so figuring out a stock’s value plays a big role in picking stocks, investors look for undervalued stocks that are likely to go up, though some traders who focus on momentum might disagree with this approach.

Growth investing is all about finding stocks of companies that show strong, steady, and long-lasting growth that’s expected to keep going in the future.

To calculate the Growth Score and give it a letter grade, we need to figure out the percentile ranks for three key parts:

1. How steady the yearly sales growth is
2. Five-year sales growth rankings adjusted for extreme levels
3. How often the yearly cash from operations is positive

We add these three ranks together. Then, we rank this sum against all other stocks to get a company’s Growth Score. This creates an even spread of grades.

Companies in the bottom 20% of all stocks get Growth Grades of F, which means Very Weak. Those in the top 20% get A grades, which means Very Strong.

Solventum Corp has a Growth Score of 32, which is Weak.

Should You Buy Solventum Stock Price?

Overall, Solventum Corp stock gets a D for its Growth Grade.

Your decision to buy Solventum Corp stock will depend on your personal goals how much risk you’re comfortable with, and how you spread out your investments.

To finish up, it’s key to assess a stock by comparing it to others in its industry. Look at the table below to see how Solventum stock price measures up to its rivals. Check their stock grades for value, momentum, quality, and EPS revisions.