Here's Why You Should Retain IQVIA Holdings Shares Now

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IQVIA Holdings Inc. IQV has had an impressive run over the past three months. The stock has gained 9.3%, outperforming the 3.9% rise of the industry it belongs to and the Zacks S&P 500 composite’s 2% uptick.

IQV has an expected long-term (three to five years) EPS growth rate of 10.4%. The company’s earnings for 2024 and 2025 are expected to grow 9.6% and 10.6%, respectively.

IQVIA Holdings Inc. Price

IQVIA Holdings Inc. price | IQVIA Holdings Inc. Quote

IQV’s Global Reach, Market Leadership in Healthcare Analytics

IQVIA operates in over 100 countries, giving it a vast global footprint. This extensive presence enables it to tap into emerging markets with growing healthcare needs and opportunities for clinical research. Its international reach allows for revenue growth beyond developed markets, where drug approvals and research demand remain high.

IQVIA is a leading global provider of advanced analytics, technology solutions and contract research services in the healthcare sector. Its comprehensive offering of clinical development, data analytics, and commercialization services makes it indispensable to pharmaceutical companies, biotechnology firms and medical device manufacturers. This strong market position allows IQVIA to maintain stable revenue streams and build long-term client relationships.

IQVIA is known for its innovative use of technology and data analytics, particularly through its proprietary "IQVIA CORE" platform, which integrates data, advanced analytics and expert services. This platform allows healthcare organizations to accelerate drug development, optimize clinical trials and streamline commercial strategies. The company’s data-driven approach enhances its competitiveness and makes it a go-to partner for healthcare clients seeking to leverage big data.

Some Risks

Large pharmaceutical companies continue to apply pricing pressure on IQVIA’s operations. These clients, adopting a more cautious approach to their budgets, are increasingly engaged in difficult price negotiations. This budgetary conservatism is driven by various factors, including broader economic uncertainties and the need to optimize their spending. As a result, IQVIA faces the challenge of balancing competitive pricing with steady profitability, as clients demand more cost-effective solutions without compromising the quality of services provided.

The company currently has no plan to pay cash dividends on common stock. Payment of dividends in the future depends on factors such as financial condition, cash requirements and contractual restrictions. Investors seeking cash dividends should avoid buying IQVIA.