Investment Alert: Buy Iqvia (IQV) Under $190
Disclaimer: Investment Alerts have a medium to long-term time horizon. These do not constitute financial advice and you should contact a financial advisor before deciding whether it is appropriate for your individual circumstances.
The holy grail of investing might be to track the trades of someone with a perfect track record and copy them in real-time. Absent that, we have 13F filings to see what wealthy investors did last quarter. And one of those 13F filings filed by Duquesne Family Office surfaced a fascinating new position. Duquesne is run by Stanley Druckenmiller, whose official track record eclipsed 30% annually for around 30 years. Today, Stanley manages his own money as part of a family office, but still has to disclose his positions, and one of the biggest new positions is a healthcare company that he has accumulated so much of that it’s now ranked among his top 10 holdings.
- Druckenmiller, a billionaire investor with a long track record of success, has recently added a large position in IQVIA to his portfolio.
- IQVIA is a healthcare data and analytics company that is well-positioned to benefit from a number of secular trends in the industry, such as the increasing demand for personalized medicine and the need for more efficient healthcare delivery.
- The company has a strong track record of innovation and growth, and it is one of the largest and most diversified healthcare data and analytics companies in the world.
94 Million Reasons To Buy IQVIA
In Duquesne’s most recent 13F, it was revealed that Stanley snapped up 474,500 shares of Iqvia, representing a $94,373,000 bet on this healthcare company.
For context, only seven other positions in his extensive portfolio of 76 stocks ranked higher in terms of capital allocation:
- Coupang: $302 million
- Nvidia: $219 million
- Microsoft: $210 million
- Eli Lily: $208 million
- Lamb Weston: $206 million
- Teck: $118 million
- KBR: $99 million
Other than the LLY position, all other positions in the top 8 were increased in the past quarter, signaling that Stanley’s conviction in his original theses has strengthened.
What Does The Billionaire See In IQVIA?
IQVIA is an interesting investment from a bullish perspective for a number of reasons. The company is a leader in the healthcare data and analytics space, which is a rapidly growing market.
It also has a strong track record of innovation and growth, with revenue and earnings per share both growing at double-digit rates in recent years. And it has a strong balance sheet and cash flow generation, which gives it the financial flexibility to invest in growth initiatives and return capital to shareholders.
What Druckenmiller likely also identified is that IQVIA is well-positioned to benefit from a number of secular trends in the healthcare industry, such as the increasing demand for personalized medicine and the need for more efficient healthcare delivery.
Why Buy IQVIA?
If we boiled down the reasons why Stanley made such a large bet on Iqvia, they would be:
- Growth prospects: The healthcare data and analytics market is expected to grow at a compound annual growth rate (CAGR) of 25.7% from 2022 to 2027. IQVIA is a leading player in this market, with a strong track record of innovation and growth.
- Competitive position: It is one of the largest and most diversified healthcare data and analytics companies in the world, providing it a strong competitive position that allows it to offer a wide range of services to its customers.
- Financial stability: The company’s balance sheet is sturdy and it has an abundance of cash flows.
Overall, IQVIA has strong growth prospects, a good competitive position, and impressive financials. It is also well-positioned to benefit from a number of secular trends in the healthcare industry.