12 High Growth Large Cap Stocks to Buy Now

7) ICON Public Limited Company (NASDAQ:ICLR)

5-Year Revenue Growth: ~24.6%

Average Upside Potential: ~34.0%

Market cap as of 12 November: $17.4 billion

ICON Public Limited Company (NASDAQ:ICLR) is a clinical research organization, that offers outsourced development and commercialization services in Ireland, the Rest of Europe, the US, and internationally.

Wall Street experts are optimistic about the company’s acquisition of PRA Health Sciences. This acquisition has expanded ICON Public Limited Company (NASDAQ:ICLR)’s market share and capabilities, mainly in late-stage clinical research. This strategic move places the company to compete more effectively with other top-tier CROs and potentially tap a larger share of the growing outsourced R&D market. The acquisition should result in expanded service offerings, cost synergies, enhanced technological capabilities, and improved bargaining power.

The analysts believe that ICON Public Limited Company (NASDAQ:ICLR) might benefit from potential lower interest rates, which can result in significant investment in the biotech sector and increase demand for CRO services. Also, the company might benefit from a continued trend toward increased outsourcing penetration in the pharmaceutical industry. Moving forward, the company continues to focus on strategic partnerships and M&A, mainly in lab services and the Asia Pacific region.

ICON Public Limited Company (NASDAQ:ICLR)’s net business wins in Q3 2024 came in at $2,328 million. This reflects a net book to bill in the quarter of 1.15, and a trailing twelve-month net book to bill of 1.21. The company’s full-year 2024 financial revenue guidance stood at $8,260 million – $8,300 million, which implies a YoY rise of 1.7% – 2.2%. It expects adjusted EPS of between $13.90 – $14.10, reflecting a YoY growth of 8.7% – 10.2%.

As per Wall Street analysts, the shares of ICON Public Limited Company (NASDAQ:ICLR) have an average price target of $280.50. Baron Funds, an investment management company, released its first quarter 2024 investor letter. Here is what the fund said:

“Solid stock selection in life sciences tools & services was mainly due to double-digit gains from clinical genetic testing company Natera, Inc. and global contract research organization ICON Public Limited Company (NASDAQ:ICLR). ICON’s shares rose in response to management’s optimistic messaging in the face of a firming industry backdrop and accelerating trends, which led investors to believe that the company’s initial guidance for fiscal year 2024 was more conservative than initially believed. The company continues to experience strong demand despite lingering concerns over biotechnology funding levels. Customer preference is shifting toward functional outsourcing services, which should disproportionally benefit ICON as the leader in this market.”