A Good Uk Medical Stock

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A Good Uk Medical Stock

Good Uk Medical Stock To Consider

Smith & Nephew is a part of the FTSE 100 index and has lost almost 15% of its value since November. Now that the Smith & Nephew is available at a discount, is it worth it to buy the stock.

Whenever a stock sheds as much as Smith & Nephew, one must reassess the fundamentals once again. For starters, the Q1 results showed the revenue was $1.407 billion y/y with a 3.1% jump. These numbers were achieved despite the ongoing tension between the US and China.

Smith &Amp;Amp; Nephew Looks Undervalued

Also, the UK government continues with its VBP program. The government uses programs like these to buy drugs in bulk at a lower price.

So, what would it take for Smith & Nephew to increase its revenue? The firm will have to increase its production of the drugs & that will take time.

For the year 2025, the Smith & Nephew has issued a revenue forecast shows 5% growth. This comes despite the China VBP and the US tariffs headwinds.

In addition, the forecasts from the consensus analysts show a 16.6% increase in earnings by 2027-end.

And if we look at the stock in terms of price to sale ratio, its around 2.2 while the competitors are near 3. This includes Sartorius, ContaTec,and EKF Diagnostics.

So, as far as the price-to-book ratio is concerned, the Smith & Nephew stock looks very undervalued. As for the P/E ratio, it's nearly 30.3 while other firms in the sector have nearly 63.6.

But for those who want a high dividend yield from the stocks, Smith & Nephew isn't such a good option at all. They are paying a 2.9% dividend yield while others in the sector are paying more.

But, if you don't pay that much attention to the dividends and are willing to hold for a few years, the Smith & Nephew can be a good option to hold for the long term.

However, its important to also look at the technical charts of the Smith & Nephew to ensure that it is ready for a ready turnaround.

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