Yahoo Finance

AMC Networks, the cable TV player behind hit shows like Breaking Bad, Mad Men, and The Walking Dead, is struggling to adapt to a world where streaming is king and traditional linear TV is rapidly losing relevance. The company’s revenue base is still heavily reliant on cable distribution fees and ad dollars, two sources that are drying up faster than a zombie apocalypse water supply. A classic case of cord-cutting carnage.

Let’s face it, the legacy media just isn’t what it used to be. Consumers are cutting the cord, advertisers are shifting to digital, and new content is being gobbled up by streaming giants with deeper pockets and global distribution.

The Zacks Rank system doesn’t lie. When analysts start slashing their earnings estimates, that’s your cue to pay attention. And with AMC Networks, it’s not just a small trim, we’re talking about a full-on buzz cut.

Over the last 90 days, analysts have taken the hatchet to AMCX’s earnings outlook. The Zacks Consensus Estimate for the current year has dropped from $3.15 per share to just $2.62. Next year isn’t looking any better either, with estimates sliding from $3.10 to $2.43. That means that this year’s 32% contraction in earnings is forecast to slide another 7.35% next year. With no fewer than 3 analysts chopping at earnings, that’s the reason why the stock is currently a Zacks Rank #5 (Strong Sell).

Additional content:

3 Tariff-Proof Medical Device Stocks to Watch Going Forward

President Trump has been vocal about prioritizing the growth of U.S. companies and citizens since his campaigning days. The President has raised the “Make America Great Again” or MAGA slogan, which has been a key driver in his electoral success last year. One of the major actions taken by Trump as part of his MAGA movement is to bring manufacturing jobs back to the United States by raising tariffs. Trade policies under MAGA emphasize tariffs on China, Mexico, Canada, and other countries, as well as renegotiating agreements like the USMCA to favor American businesses.

However, President Trump’s tariff policies are set to significantly impact Medical Device companies that rely on offshore manufacturing and global sales. With approximately 75% of U.S.-marketed medical devices being produced abroad, tariffs will increase costs, forcing companies to either absorb losses or pass them on to consumers, thereby raising healthcare expenses.

Supply chain disruptions are another major consequence. Companies that manufacture their products overseas, like Intuitive Surgical’s dependence on Mexico, will face severe financial strain, while those with minimal offshore production, like Becton Dickinson, may have a competitive edge. Additionally, specific categories such as hospital supplies, diagnostic imaging, and respiratory devices — commonly imported — are likely to experience price hikes and supply shortages.

Further complicating matters, Trump’s proposed 60% tariffs on Chinese imports will directly impact a significant chunk of U.S.-marketed medical devices. Companies operating in China have already adapted to prior tariffs, but those with heavy investments in Mexico and Canada now face new risks. Retaliatory tariffs from affected countries could also dampen international sales.

Amid the rising risk of a tariff war, we expect the performance of Medical Device companies to be volatile. The major impact of tariffs is likely to be reflected in the results of the companies during the second half of 2025. Hence, here we have discussed three companies — Stryker, Medtronic and Insulet Corp. — to watch that are likely to stabilize despite a raised tariff. Also, these companies have favorable Zacks Rank, implying upside prospects this year.

Stryker has a manufacturing facility in Mexico, but with a network of 40 plants globally, its dependency on any single facility is minimal. The possibility of new tariffs on imports from Mexico and Canada raises questions about cost implications for U.S. businesses, particularly those relying on cross-border supply chains. However, SYK’s ability to shift production or absorb cost fluctuations ensures that tariffs, if enacted, will have a limited impact on its overall operations.

Meanwhile, the international markets accounted for approximately 24% of Stryker’s total revenues during the fourth quarter, with strong growth in Canada, Europe and emerging markets. However, unlike companies that rely heavily on international sales, Stryker’s primary market remains the United States, ensuring that any tariff-related disruptions from Canada and Mexico will have a marginal impact on its overall revenue stream.

SYK is actively monitoring tariff discussions but does not anticipate a material financial impact. The company’s ability to navigate pricing pressures, optimize supply chains, and maintain strong U.S. sales growth positions it well for sustained performance.

Stryker shares have gained 4.2% so far this year. The company currently carries a Zacks Rank #3 (Hold), with a Zacks Style Score of B, implying upside momentum to continue in its share price.

Stryker Corporation price | Stryker Corporation Quote

Medtronic, a global leader in medical technology, has strategically positioned its manufacturing operations to minimize exposure to potential U.S. tariffs on imported medical devices. The company maintains a robust global supply chain while ensuring that a significant portion of its production remains within the United States. This strategic approach allows it to navigate trade uncertainties effectively, reducing the potential impact of tariffs on its cost structure and overall financial outlook.

The company has also been expanding and optimizing its U.S.-based manufacturing facilities, reinforcing its commitment to domestic production while leveraging cost efficiencies. By maintaining multiple production hubs across different regions, Medtronic retains the flexibility to adjust its supply chain to mitigate any adverse effects of trade restrictions.

Another key factor that shields Medtronic from tariff risks is its dominant position in the U.S. healthcare market, where the majority of its sales are generated. This ensures a stable revenue base, largely independent of international trade disruptions. For international sales, even in cases where tariffs may be imposed on imports from Mexico or Canada, Medtronic’s diverse manufacturing footprint allows it to adapt quickly. In addition, the company has reported strong growth in emerging markets such as Japan, India, and Eastern Europe, further diversifying its revenue streams and reducing over-reliance on any single trade region.

Overall, tariffs are unlikely to have a significant negative effect on Medtronic’s financial outlook, making it a resilient and stable investment prospect despite potential trade uncertainties.

MDT currently carries a Zacks Rank of 3, with a Zacks Style Score of A, implying a cheap valuation with strong growth prospects. The company’s shares have gained 16.7% so far this year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Medtronic PLC price | Medtronic PLC Quote

Insulet Corporation’s robust expansion into international markets, combined with its significant U.S. presence, has positioned it well for sustained revenue growth. However, the imposition of new U.S. tariffs raises concerns about potential cost pressures, supply chain disruptions, and manufacturing efficiencies. Insulet has downplayed any material impact from tariffs in its 2025 outlook. For now, the company has guided for gross margin stability at approximately 70.5% in 2025, signaling confidence that its supply chain efficiencies will offset any tariff headwinds.

A key advantage for Insulet in mitigating tariff-related risks is its globally diversified manufacturing footprint. The company operates production facilities in the United States, China and Malaysia, which provides resilience against geopolitical and trade uncertainties. This diversified approach allows Insulet to shift production between regions, optimizing costs and avoiding overreliance on a single market.

In particular, the Malaysia facility, which is set to become slightly accretive in the second half of 2025, is expected to play a crucial role in countering any tariff-related cost increases by providing lower-cost production capacity in the Asia-Pacific region. Moreover, Insulet’s supply chain strategy is designed to reduce dependency on single-source suppliers by developing regional dual sourcing for key materials. This flexibility enhances its ability to absorb cost fluctuations arising from tariffs, raw material price volatility, or geopolitical instability.

Moreover, PODD generated nearly 25% of its sales from international markets in 2024, with strong international expansion. However, unlike companies that rely heavily on international sales, PODD’s majority market remains the United States, ensuring that any tariff-related disruptions from international markets will have a marginal impact on its overall revenue stream.

PODD currently carries a Zacks Rank #2 (Buy), with a Zacks Style Score of D, implying upside prospects. However, an expensive valuation remains a concern. The company’s shares have declined 1.3% so far this year.

Insulet Corporation price | Insulet Corporation Quote

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

https://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Medtronic PLC (MDT) : Free Stock Analysis Report

Stryker Corporation (SYK) : Free Stock Analysis Report

AMC Networks Inc. (AMCX) : Free Stock Analysis Report

LendingTree, Inc. (TREE) : Free Stock Analysis Report

Insulet Corporation (PODD) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research