Is it Apt to Retain Haemonetics Stock in Your Portfolio for Now?

Haemonetics Corporation’s HAE impressive Hospital business recovery is poised to drive growth in the upcoming quarters. The robust uptake of the NexSys PCS system bodes well for its long-term growth. However, a debt-burdened balance sheet and fierce competitive pressure remain concerns for HAE’s operations.

In the past year, this Zacks Rank #3 (Hold) company’s shares have lost 7.7% compared with the industry decline of 17%. The S&P 500 composite has grown 24.2% in the same time frame.

The global provider of blood and plasma supplies and services has a market capitalization of $2.82 billion. HAE beat on earnings in each of the trailing four quarters, delivering an average surprise of 6.8%.

Let us delve deeper.

Haemonetics’ Key Upsides

NexSys PCS System Continues to Thrive: Haemonetics’ FDA-cleared, NexSys PCS is designed to increase plasma yield collections, improve productivity in customers’ centers, enhance the overall donor experience, and provide safe and reliable collections that will become life-changing medicines for patients. The bi-directionally connected NexSys PCS with NexLynk DMS delivers a 16-minute reduction in donor door-to-door time on average.

The new, proprietary Persona Technology strengthens the NexSys PCS value proposition and reinforces the company’s commitment to supporting its Plasma customers. The strong adoption of NexSys with Persona Technology contributed to margin expansion in the third quarter of fiscal 2026. In addition, the company’s full transition from the PCS2 devices to the latest NexSys with Persona Technology will drive meaningful improvements in the upcoming quarters.

Hospital Business Recovery Continues: The Hospital business remains well-positioned to maintain its strong growth, supported by dynamic market conditions. The 2024 acquisition of Attune Medica added the Esophageal Protection product line, while the 2023 OpSens acquisition expanded the business into the interventional cardiology market.

Through December 2025, Hospital revenues rose 2% organically, as strong performance in Blood Management Technologies offset softness in Interventional Technologies. Blood Management Technologies grew 11% over the same period, reflecting sustained strength in hemostasis management.

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Concerns for HAE

Weak Solvency: Haemonetics exited the fiscal third quarter with cash and cash equivalents of $363.4 million and $305 million in near-term payable debt on its balance sheet. The long-term debt at the end of the fiscal third quarter was $920 million, indicating a highly leveraged balance sheet. Debt-to-capital ratio was 50.2%, while times interest earned was 10.5, sequentially up 1%.

Competitive Landscape: Haemonetics operates in a very competitive environment, both for manual and automated systems. Slower-than-expected product adoption by customers might reduce the company’s revenues and profit.

HAE’s Estimate Trend

The Zacks Consensus Estimate for fiscal 2026 earnings has remained unchanged at $4.95 per share in the past 30 days.

The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $1.33 billion, which indicates a 2.6% decrease from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Globus Medical GMED, Intuitive Surgical ISRG and Edwards Lifesciences EW.

Globus Medical has an earnings yield of 4.9%, well ahead of the industry’s -0.7% yield. Its earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.8%. The company’s shares have rallied 19.5% against the industry’s 3.7% decline over the past year.

GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical, sporting a Zacks Rank #1, has an earnings yield of 2.1% against the industry’s -0.7% yield. Shares of the company have risen 1.5% against the industry’s 3.7% decline. ISRG’s earnings topped estimates in each of the trailing four quarters, the average surprise being 13.2%.

Edwards Lifesciences, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 3.6% against the industry’s -0.7% yield. Shares of the company have climbed 23.2% against the industry’s 3.7% decline. EW’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 5.5%.

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