GE - GE HealthCare Technologies: Stable Business But Future Upside Seems Limited
2024-02-14 05:44:45 ET
Summary
- Aging populations will drive long-term demand for healthcare products, with expected annual growth of 4-6%.
- Healthcare products have a large moat due to barriers to entry and are not easily replaced by cheap Chinese products.
- The market for healthcare products offers stable revenue and relatively high profit margins.
- GEHC seems fairly valued at the current moment after a 40% price increase last year, future upside seems limited.
Last year, General Electric ( GE ) completed the spinoff of its healthcare division GE HealthCare Technologies ( GEHC ) which makes medical imaging devices and related products. Its main line of business includes medical imaging technologies such as MRI (Magnetic Resonance Imaging), CT (Computed Tomography) scans, X-ray, and ultrasound systems. These technologies are crucial for diagnosing and monitoring a large variety of medical conditions such as cancer, cardiovascular diseases, and neurological issues such as brain trauma. Since the spinoff in January 2023, the shares of GEHC have risen over 40% as shown by the chart below....
GE HealthCare Technologies: Stable Business, But Future Upside Seems Limited