Rochester Medical Corporation (ROCM), C.R. Bard, Inc. (BCR), Teleflex Incorporated (TFX): Finding Strength in Medical Supplies

PICC Potential

Lastly, Teleflex Incorporated (NYSE:TFX) is another diversified healthcare supply company with an array of products in many fields, including vascular access, general and regional anesthesia, urology, respiratory care, cardiac care and surgery. The company’s specialty fiber technology,

Deknatel, is used in a variety of surgical components. With the acquisition of VasoNova a couple years ago, management cemented itself in the growing PICC industry. A PICC is used to hold open veins for prolonged periods to allow the administration of various medicines. While C.R. Bard, Inc. (NYSE:BCR) has held the industry leader position since the development of PICC technology, Teleflex Incorporated (NYSE:TFX) is quietly taking market share and is expected to generate significant revenues for the first time later this year, roughly $32 million. As we see a rise in chronic treatments, I feel it’s likely Teleflex Incorporated (NYSE:TFX) will continue to increase its revenues from this business segment. Moreover, the demand for PICC’s should rise due to the difficulties seen with traditional IVs in older populations. With the company’s 10% growth rate, 15 times forward earnings seems inexpensive.

Wrap-Up

While I am bullish on the entire healthcare sector, I feel investors can find passed over opportunities in quiet medical supplies industry. While these companies may not be as sexy as biotechnology, revenues should consistently grow in tandem with the healthcare industry. I would use a broad market pullback as a long-term opportunity to start positions in these companies. Rochester Medical Corporation (NASDAQ:ROCM) should benefit from rising demand and strong pricing power associated with its niche line of catheters. C.R. Bard, Inc. (NYSE:BCR) and Teleflex Incorporated (NYSE:TFX) offer diversified portfolios of medical supplies which should allow these companies to benefit from greater healthcare demand across the board.

The article Finding Strength in Medical Supplies originally appeared on Fool.com and is written by Nathaniel Matherson.

Nathaniel Matherson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Nathaniel is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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