With Volatile Markets Impending is Varian Medical Systems, Inc. (VAR) Beta 0.66 stable ?

The company has reported 16.90% ROE which is seen as a positive as sustainable growth rate continues to increase. Parallel with its profitability ratio and Healthcare sector, return on assets has remained moderate at 7.70%.

Company does have higher support at $98.09, acting as a long range signal of index direction. VAR is expected to do slightly above than the market returnsAnalyst from Citigroup restated current rating of NeutralAnd updated PTs to 121 to accurately reflect the reality with upside of 1.68% from previous PT of 119Valuation of the company considering balance sheet strength is in growth of Price to Book at 6.82 however there is scope for a positive analyst outlook.

Comparing 1.4 current ratio to its sector peers , might not be ideal , yet are more resilient than others , companies current short-term investments and other marketable securities are at 1.4 Current Ratio .

Health Care sector is staging a rebound at 8277.32 points, comparatively to the broader index, has seen a change of -14.52 The Health Care rally further compounded as the money flow clocked 4.81x with down tick of $4554.14mn resulting in non-yielding $4058.44mn up ticks. With respect to block trades, money flow ended $-426.40mn with tick up at $715.25mn and tick down at $1141.65mn led an up /down ratio of 0.63x.

End of the day trading on Wednesday, Dec 06 market cap stood at $10204.58 M and company has been favourites with Institutional investors. Stocks appear to lack any clear trend indicator at currently , however its important to consider that present beta has no implications on prices future volatility, considering Varian Medical Systems, Inc. currently trades at a beta value of 0.66.

Company is on track for increased earnings of 23.66, keep in mind that analyst predictions can often go wrong . With forward PE of 23.66, Varian Medical Systems, Inc. is likely to see lower earnings per share for the fiscal , the takeaway here is clear Varian Medical Systems, Inc. earnings over the next 12 months suggest a downtrend in growth stock might not be for value investors.

It’s fair that traders are worried with expensive valuation , but we are warn against selling because of higher then avg CAPE value . Still the business looks pretty high priced as of now, and Healthcare sector PE comes at 27.11 lower the company PE .

Stock with increasing 5Y EPS at 8.0%, now commands higher price levels supported by growth potential.. Varian Medical Systems, Inc. prices are trading at a premium to its returns and investors initiating a new position it are paying more per unit of potential growth. On the other hand the is no sign of rally to sustain its PE. Varian Medical Systems, Inc. continued to hold on to its PEG of 5.02 which came in lower than sector valuation at 2.59 This could lead to greater efficiencies in the long run.

It is always important to compare Quick R ratio to that of competitors in the same Medical Appliances & Equipment industry , considering VAR level of quick assets to current liabilities stands at 1.1.

Eps growth is on negative trend this year , but analysts expect this to improve . The RSI for the stock trades in the no trade zone indicating of same level price moves in the short term , company RSI 62.69 does not yet confirm to lower lows or high and this shows lack of strong pattern .

Company is now above its short-term resistance factor by 45.55%, and the current higher volume is also a positive trend and can act as a failed upward-breakouts . Current bullish surge suggests Varian Medical Systems, Inc. could enjoy further share price growth.

Share this post