SOURCE: Wall Street Equity Research

Wall Street Equity Research

August 27, 2010 09:07 ET

Professional Research on Covidien plc and CareFusion -- Three Factors Undermining Growth in the Medical Instruments & Supplies Industry

JOHANNESBURG, SOUTH AFRICA--(Marketwire - August 27, 2010) - allows shareholders to gain full understanding of the economic and market forces influencing the medical instruments & supplies industry, and offers free research on industry players Covidien plc (NYSE: COV) and CareFusion Corporation (NYSE: CFN). Register today at to receive free research reports on these companies.

The medical technology industry is down despite its history of solid recession performances. The non-cyclical nature of the industry has enabled it to weather tumultuous economic landscapes. However, the normally stable industry is down due to the unfortunately timed convergence of three detrimental factors: unemployment, vacations and underperforming industry leaders. Visit us at to understand the catalysts and forces driving or affecting medical instruments & supplies stocks. is a specialized website where investors can have complete access to free reports on medical instruments & supplies industry; traders looking for analyst opinions on Covidien plc, CareFusion Corporation and other players in the industry are welcomed to sign up for a free one year membership at

The recent spike in unemployment has made many patients reluctant to dole out of pocket expenses for medical devices. To compensate, some companies are lowering device prices, narrowing profit margins in the process and further exacerbating the issues facing the industry.

Summer vacations similarly affect medical technology companies like unemployment but to a slightly lesser degree. Patients are more likely to delay procedures during the summer vacation season. 

The recent underperformance of some industry leaders has made waves that would otherwise be ripples had the timing been different. Typically, underperformances like this would not create as much apprehension as it is now but the fear of a double dip recession has made the stock market much more volatile. 

The ill-timed Trifecta of factors has halted growth for the moment but the normally resilient industry could rebound in the coming months. 

Earnings this season was indicative of the trend this industry is facing. Covidien plc, the Ireland-based healthcare product manufacturer, posted earnings of $352 million on revenue of $2.56 billion. Most recently, CareFusion Corp. released better-than-expected results for the quarter with adjusted profits of $52 million on revenue of $1.04 billion up 19% from the same quarter last year. Shareholders and investors can sign up today at or to download the full reports on Covidien plc and CareFusion Corporation.

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