InfuSystem Holdings is Our Featured Stock of the Week…

NYSE: INFU | InfuSystems Holdings, Inc. News, Ratings, and Charts

INFU – Market conditions are changing. Concerns about recession are now more paramount than inflation. A winner of this changing dynamic is healthcare and biotech stocks. In today’s article, I want to talk about InfuSystem Holdings (INFU) which has these exact characteristics. .

2022 has been a year for the bears with the S&P 500 down more than 20% YTD. However, there is one interesting change under the surface. 

After more than a year of rates rising, we are starting to finally see some weakness in longer-term rates as the market’s expectations for inflation ease, while the risk of recession is rising. In fact, some analysts believe the Fed may be forced to start cutting rates as soon as Q1 of 2023. 

The dynamic of rising recession risk and moderating inflation means that investors should avoid cyclical stocks. Instead, this is the environment when quality growth stocks outperform. Among this group, healthcare and pharmaceutical stocks look particularly attractive as these companies’ earnings and operations are well-insulated from economic or monetary shocks. 

In this sector, investors should look at companies with attractive valuations and improvements in operations that investors may have overlooked during the first half of the year. In today’s article, I want to talk about InfuSystem Holdings (INFU) which has these exact characteristics. 

Company Background

INFU is a provider of infusion pumps, and services to hospitals, doctors, and healthcare providers. Some of its services include Integrated Therapy Services and Durable Medical Services.

Recently, the company signed a major contract with GE Healthcare for infusion pumps, becoming its most favored vendor. The deal is expected to contribute between $10 million and $12 million in 2023. Following the deal’s signing, analysts increased 2023 EPS forecast to $0.38 from $0.29 previously.

Value

INFU is a turnaround play, so the normal method of looking at valuations doesn’t apply. From its high last year, the stock price declined by more than 50% before modestly bouncing.

The company also has a $20 million buyback program with about $15 million. This is pretty meaningful given the company’s total market cap of $183 million.

However, the biggest determinant will be whether earnings will bounce back and exceed 2020 level. Currently, analysts are forecasting $0.44 in EPS for the next 12 months, giving it a forward P/E of 21.7. 

Catalysts

As mentioned in the intro, one catalyst for INFU is the change in market conditions which should lead to more inflows for the healthcare sector.

For INFU, the GE Healthcare deal is an obvious needle-mover, and it should have an opportunity to add product sales beyond just infusion pumps. Another potential tailwind for the company is increased earnings from its pain management division. 

One reason for its poor performance in 2021 was the company spent heavily to bolster its sales team. In the coming quarter, we will find out whether this was a good investment. However, management seems confident as they see Pain & Wound Care contributing $20 million in revenue in 2023.

POWR Ratings

The POWR Ratings are also bullish on INFU as it is rated a B which translates to a Buy. B-rated stocks have an average annual performance of 19.7% which compares favorably to the S&P 500’s annual performance of 7.3%.

What To Do Next?

If you’d like to see more top stocks under $10, then you should check out our free special report: 3 Stocks to DOUBLE This Year

What gives these stocks the right stuff to become big winners?

First, because they are all low priced companies with explosive growth potential, that excel in key areas of growth, sentiment and momentum.

But even more important is that they are all top Buy rated stocks according to our coveted POWR Ratings system, Yes, that same system where top-rated stocks have averaged a +31.10% annual return.

Click below now to see these 3 exciting stocks which could double (or more!) in the year ahead:

3 Stocks to DOUBLE This Year

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


INFU shares were unchanged in after-hours trading Friday. Year-to-date, INFU has declined -43.22%, versus a -19.14% rise in the benchmark S&P 500 index during the same period.


About the Author: Jaimini Desai


Jaimini Desai has been a financial writer and reporter for nearly a decade. His goal is to help readers identify risks and opportunities in the markets. He is the Chief Growth Strategist for StockNews.com and the editor of the POWR Growth and POWR Stocks Under $10 newsletters. Learn more about Jaimini’s background, along with links to his most recent articles. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
INFUGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Why Are Stocks Floating Higher?

Why are stocks breaking above 6,000 once again? When will they make news highs? And what is an investor to do now? Seasoned investor Steve Reitmeister shares his thoughts in this updated commentary.

How is the Stock Market Like a Helium Balloon?

Stocks have finally broke above 6,000 for the S&P 500 (SPY). The more important question is what comes next? Steve Reitmeister provides his answer in his latest market commentary.

Has the Bull Market Run Out of Steam?

It seems the S&P 500 (SPY) advance has stalled and cant crack above strong resistance at 6,000. Why is that happening? And what happens next? Read on for the answers...

Investors Remain “Cautiously Optimistic”

The S&P 500 (SPY) has made great advances since the lows of early April. Yet seem to be stuck under resistance at 6,000. What happens next depends on tariff talks. So let’s talk about the latest news on that front.

Bull Market Til Proven Otherwise

The phrase that paid for investors in 2025 was “Bull market til proven otherwise” Steve Reitmeister explains why in his latest market update and preview of top stock picks.

Read More Stories

More InfuSystems Holdings, Inc. (INFU) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All INFU News