Is GE HealthCare Technologies Stock Underperforming the Nasdaq?

Chicago, Illinois-based GE HealthCare Technologies Inc. (GEHC) is a healthcare solutions provider that engages in the development, manufacture, and marketing of products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients. With a market cap of $33.9 billion, it operates through Imaging, Advanced Visualization Solutions (AVS), Patient Care Solutions (PCS), and Pharmaceutical Diagnostics (PDx) segments.

Companies worth $10 billion or more are generally described as "large-cap stocks", and GE HealthCare fits this description perfectly. The company is a trusted partner, innovating in medical technology, pharmaceutical diagnostics, and integrated, cloud-first AI-enabled solutions, services, and data analytics to make health systems more efficient.

GE HealthCare currently trades 22.6% below its all-time high of $94.80 recorded on February 13. GEHC's stock has declined 14.2% over the past three months, significantly lagging behind the Nasdaq Composite’s ($NASX) 12.5% uptick during the same time frame.

In the long term, GE HealthCare stock has dropped 6.1% on a YTD basis, whereas the Nasdaq has increased 1.6%. Additionally, shares of GEHC dipped 1.8% over the past 52 weeks, notably underperforming NASX’s 13.1% returns over the same period.

GE Healthcare’s stock has remained below its 200-day moving averages since mid-March. However, the stock has been trading above its 50-day moving average since late May.

Meanwhile, GEHC shares gained 3.3% following the release of its Q1 earnings on Apr. 30. The company’s total revenue for the quarter increased 2.7% year-over-year to $4.8 billion and surpassed the Street's expectations. Moreover, the company’s adjusted EBIT margin expanded from 14.7% reported in the year-ago quarter to 15%, leading to a 5% year-over-year growth in adjusted EBIT to $715 million. GEHC’s adjusted net income also rose 12.3% from the previous year’s Q1 to $464 million. Furthermore, the company’s adjusted EPS soared 12.2% compared to the year-ago quarter to $1.01, surpassing the Street’s forecasts by 11%.

Compared to its rival, Veeva Systems Inc. (VEEV) has notably outpaced the GEHC stock. VEEV stock has soared 37.2% on a YTD basis and climbed 53.5% over the past 52 weeks.

Among the 18 analysts covering the GEHC stock, the consensus rating is a “Strong Buy.” Its mean price target of $87 suggests an 18.5% upside potential from current price levels.