Over the last six months, IQVIA’s shares have sunk to $163.04, producing a disappointing 13.2% loss - a stark contrast to the S&P 500’s 6.5% gain. This may have investors wondering how to approach the situation.
Is now the time to buy IQVIA, or should you be careful about including it in your portfolio? Get the full stock story straight from our expert analysts, it’s free.
Why Is IQVIA Not Exciting?
Despite the more favorable entry price, we don't have much confidence in IQVIA. Here are three reasons there are better opportunities than IQV and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, IQVIA grew its sales at a mediocre 6.9% compounded annual growth rate. This was below our standard for the healthcare sector.
2. Weak Constant Currency Growth Points to Soft Demand
In addition to reported revenue, constant currency revenue is a useful data point for analyzing Drug Development Inputs & Services companies. This metric excludes currency movements, which are outside of IQVIA’s control and are not indicative of underlying demand.
Over the last two years, IQVIA’s constant currency revenue averaged 4.1% year-on-year growth. This performance slightly lagged the sector and suggests it might have to lower prices or invest in product improvements to accelerate growth, factors that can hinder near-term profitability. 
3. Free Cash Flow Margin Dropping
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, IQVIA’s margin dropped by 3.6 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. IQVIA’s free cash flow margin for the trailing 12 months was 13%.
Final Judgment
IQVIA isn’t a terrible business, but it isn’t one of our picks. After the recent drawdown, the stock trades at 13× forward P/E (or $163.04 per share). This valuation is reasonable, but the company’s shakier fundamentals present too much downside risk. We're fairly confident there are better investments elsewhere. Let us point you toward one of our top digital advertising picks.
Stocks We Like More Than IQVIA
Your portfolio can’t afford to be based on yesterday’s story. The risk in a handful of heavily crowded stocks is rising daily.
The names generating the next wave of massive growth are right here in our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
