Valued at a market cap of $33.3 billion, GE HealthCare Technologies Inc. (GEHC) develops, manufactures, and markets products, services, and complementary digital solutions used in the diagnosis, treatment, and monitoring of patients. The Chicago, Illinois-based company specializes in four key business areas, including Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. 

This healthcare company has underperformed the broader market over the past 52 weeks. Shares of GEHC have declined 12.5% over this time frame, while the broader S&P 500 Index ($SPX) has surged 19.3%. Moreover, on a YTD basis, the stock is down 6.6%, compared to SPX’s 8.4% return. 

Narrowing the focus, GEHC has also lagged behind the iShares U.S. Medical Devices ETF’s (IHI) 9.4% rise over the past 52 weeks and 4.7% uptick on a YTD basis. 

GEHC released its Q2 results on Jul. 30. Due to higher orders, driven by strength in the U.S., Europe, the Middle East and Africa, the company’s quarterly revenue grew 3.5% year-over-year to $5 billion, surpassing consensus estimates by a slight margin. Moreover, its adjusted EPS of $1.06 improved 6% from the year-ago quarter and came in 16.5% above the analyst expectations. Additionally, GEHC raised its fiscal 2025 guidance, reflecting healthy capital investment trends, operational execution and changes in tariff rates. It now expects adjusted EPS to be in the range of $4.43 to $4.63. Yet, its shares plunged 7.8% after the earnings release. 

A 1.8% year-over-year decline in its adjusted EBIT to $729 million, accompanied by a 70-basis-point drop in the adjusted EBIT margin, may have weighed on investor sentiment, contributing to a decline in its stock price. 

For the current fiscal year, ending in December, analysts expect GEHC’s EPS to grow marginally year over year to $4.53. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters. 

Among the 19 analysts covering the stock, the consensus rating is a "Strong Buy” which is based on 13 “Strong Buy,” one "Moderate Buy,” and five “Hold” ratings. 

The configuration has remained reasonably stable over the past three months. 

On Aug. 4, Stifel Nicolaus analyst Rick Wise maintained a "Buy" rating on GEHC and set a price target of $90, implying a 23.3% potential upside from the current levels. 

The mean price target of $87.79 represents a 20.3% premium from GEHC’s current price levels, while the Street-high price target of $106 suggests an ambitious upside potential of 45.2%.