Varian Medical Systems: Analyzing Its Stock Performance



Stock performance

Varian Medical Systems (VAR) was trading at $102.7 on June 29, 2017. It has a 50-day moving average of $100.4 and a 200-day moving average of $88.8. The company’s 52-week low was reported to be $71.3 on June 30, 2016. Its 52-week high was reported to be $105.3 on June 26, 2017. As of June 30, 2017, Varian Medical Systems stock was trading ~44% above its 52-week low and ~2.5% below its 52-week high.

Article continues below advertisement

The company’s stock has gained ~16.2% since its 2Q17 earnings release on April 26, 2017. In 1Q17, Varian Medical Systems beat Wall Street’s revenue estimates and reported in-line earnings. However, the stock price fell amid weak earnings per share results. For highlights of the company’s 2Q17 earnings results, read Post-Earnings Report: Varian Medical Systems in 2Q17.

As of June 30, 2017, Varian Medical Systems’ peers Accuray (ARAY), Boston Scientific (BSX), and Thermo Fisher Scientific (TMO) generated returns of approximately -9%, 19%, and 18.3%, respectively, over the last 12 months.

Comparisons with industry and market performances

Varian Medical Systems has gained ~28% in the past 12 months. The stock exceeded the SPDR S&P 500 Index’s (SPY) performance. SPY returned ~18.8% during the same period.

Varian Medical Systems has gained momentum since its 52-week low in June 2016 and registered its 52-week high stock price on June 26, 2017—riding high on the volume spike that day. Varian Medical Systems has returned ~14.7% on a YTD (year-to-date) basis, which compares to 8.2% and 25% YTD returns for SPY and the iShares US Medical Devices ETF (IHI). IHI represents the US medical device industry.


More From Market Realist