StockStory Flags Growth and Returns Concerns at Three Healthcare Firms

StockStory named Pediatrix Medical Group, Fortrea and Collegium Pharmaceutical as healthcare stocks it views with concern, citing weak sales trends, modest growth estimates or operating challenges. The publisher said the healthcare industry gained 46.7% over six months, beating the S&P 500 by 25.6 percentage points.

For Pediatrix, StockStory cited sales declines averaging 1.3% annually over the past two years. It also said estimated sales growth of 1.5% over the next 12 months was soft, and that the company’s $1.95 billion revenue base could put it at a scale disadvantage.

Fortrea’s sales fell an average of 3% annually over the past five years, according to StockStory. The publisher also pointed to negative returns on capital and said those returns have been decreasing.

StockStory said Collegium’s estimated sales growth of 3.9% for the next 12 months suggested demand would slow from its two-year trend. It also reported that the company’s adjusted operating margin fell by 7.6 percentage points over the past two years as day-to-day expenses rose relative to revenue.