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Valued at a market cap of $12.1 billion, Solventum Corporation (SOLV) is an independent healthcare company that develops, manufactures, and commercializes a portfolio of solutions to address critical customer and patient needs. The Saint Paul, Minnesota-based company provides wound and dental care solutions, health informatics, and purification and filtration technologies, including filters and purifiers.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Solventum fits this criterion perfectly. The company is renowned for its game-changing innovations in healthcare, material, and data science that improve patients' lives.
Shares of SOLV are trading 4.5% below their 13-week high of $73.40, which they hit on Sep. 17. The healthcare company has gained 36.6% over the past three months, significantly surpassing the broader Nasdaq Composite’s ($NASX) 2.3% return over the same time frame.
SOLV has been trading above its 50-day moving average since late July to confirm its bullish trend.
On Aug. 8, shares of SOLV gained 4.9% following its Q2 earnings release as its adjusted earnings of $1.56 per share surpassed Wall Street estimates of $1.46, and its revenue of $2.08 billion in the period also topped the consensus estimates by 1.4%. The company’s raised full-year 2024 outlook, expecting earnings in the range of $6.30 - $6.50 per share, further boosted investor confidence.
SOLV has outpaced its rival Zimmer Biomet Holdings, Inc.’s (ZBH) nearly 1% decline over the past three months.
Despite SOLV’s recent outperformance relative to the broader market, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from six analysts in coverage, and as of writing, the company is trading above its mean price target of $63.25.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
