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This Week's Bonus Article Battle of Healthcare Sector Earnings: AZN vs. EW vs. ZBHBy Nathan Reiff. Article Posted: 2/10/2026. More than just a financial check-up, earnings for companies in the healthcare sector offer a key window for investors into a firm's pipeline and development progress. Even well-established, stable firms in the healthcare space can surprise with growth upon the release of a new blockbuster drug or medical device, and earnings periods are an opportunity for management to provide insight and commentary beyond what investors might expect from FDA notices of approvals, for example. When healthcare names release earnings on the same day, it can be a busy period for investors trying to sort the noteworthy news and plan trades accordingly. On Feb. 10, 2025, three major names in the sector—AstraZeneca (NASDAQ: AZN), Edwards Lifesciences (NYSE: EW), and Zimmer Biomet (NYSE: ZBH)—all reported full-year and Q4 2025 results. Below are highlights and takeaways for healthcare investors looking to make an informed plan based on these updates. AstraZeneca Firms Up Cancer Business In a Strong Overall Quarterly Performance U.K.-based pharma giant AstraZeneca ended 2025 by cementing its position as a go-to provider of cancer medicines, which accounted for about 44% of all product sales for the final quarter of the year. Sales of popular oncology drugs like Imfinzi and Enhertu grew by as much as 48% year-over-year (YoY), helping to fuel total revenue growth of 8.6% to $58.7 billion for the quarter. After-tax profits surged alongside this revenue growth, climbing to $10.2 billion from $7.0 billion in the prior-year quarter, and the company's board declared a second interim dividend seven cents higher than last year's. In 2000, I told Barron's that a popular dot-com stock was headed for trouble. It dropped 90%. Now I'm making the opposite call on that same company: buy it now. This stock has become the lifeblood of AI data centers, yet almost no one has caught the story. While the media focuses on AI chip wars, they've missed this company's essential role in building out data centers. Their hardware is so critical that a single building uses enough of it to stretch around the world eight times. If you own Nvidia, you might want to pivot. If you missed Nvidia, this is your second chance at the AI data center buildout happening worldwide. See the under-the-radar play fueling AI data centers Summary - AstraZeneca, Edwards Lifesciences, and Zimmer Biomet all reported earnings on the same day, but with vastly different results.
- Of these, AstraZeneca's impressive oncology medicine sales growth stands out, having driven significant top-line growth.
- Edwards and Zimmer both saw notable successes in the latest quarter, but also face sizable challenges.
Investors will also have more to look forward to in the year ahead as the company advances dozens of drugs through clinical trials. Management indicated that 20 Phase 3 readouts are on the way in 2026. The firm expects solid increases to both total revenue and core earnings per share (EPS) for full-year 2026. In the hours following its strong earnings performance, AZN shares climbed by close to 3%. Though 10 out of 11 analysts rate AZN a Buy or equivalent, valuation questions remain—the consensus price target of $95.75 implies a potential decline of roughly 51% from the recent share price. TAVR Momentum Fuels Edwards Sales Growth, Though Investors Should Be Mindful of Earnings and Margin Limitations Edwards builds replacement heart valves and related surgical devices as well as monitoring systems. The firm's Q4 2025 results were largely positive, including 13.3% YoY sales growth driven by strong transcatheter aortic valve replacement (TAVR) momentum and success with the latest iteration of the company's SAPIEN valve. That said, adjusted EPS came up short of analysts' forecasts, and gross profit margin fell by 0.8% YoY. Despite some mixed results in the quarter, Edwards remains optimistic it will meet its prior 2026 outlook, which calls for sales growth between 8% and 10% YoY and EPS of $2.90 to $3.05. EW shares rose in after-hours trading, briefly topping $80, about 4% higher than the prior close. About two-thirds of analysts rating EW shares believe they are a Buy, and Wall Street anticipates upside to about $96.77, roughly a 25% potential gain from current levels. Orthopedic Demand Remains High, But Zimmer Faces Some Headwinds Going Forward Zimmer Biomet, a maker of replacement systems and implants for those with joint and bone disorders, saw its share price rise more than 3% hours after announcing EPS of $2.42—four cents above consensus—and revenue of $2.2 billion, up almost 11% YoY and slightly ahead of estimates. Demand for Zimmer's orthopedic products remains strong, supporting both top- and bottom-line growth. The company is also in the midst of a transition to focus more specifically on the U.S. market, which represents close to 60% of its business. With insured patient utilization continuing to rise, near-term demand for Zimmer's products is expected to remain elevated. Still, Zimmer is likely to continue facing headwinds from tariffs, which could weigh on EPS and revenue in 2026. Management issued conservative guidance in the latest earnings report, including adjusted EPS of $8.30 to $8.45 and projected free cash flow improvement of 8% to 10%. Prior to the announcement, analysts were divided on Zimmer, and the company carries an overall Hold rating despite about 15% of projected upside potential.
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