RankAlpha logo
Back to Rankings

VREX

Varex ImagingF
Nasdaq / Health Care Equipment & Services
Last Price
Quote time unavailable
View Chart
Current thesis
The constructive read is that Varex delivered revenue within its prior range, cited solid demand in CT, cargo systems, and photon counting detectors, and guided to second-half fiscal 2026 year-over-year growth despite excluding any IEEPA tariff refund from guidance. The March refinancing also removed the nearer-term 2027 note maturity overhang, which helps if operations firm from here.
Posture
Defensive
Lead driver
Value
What changed
1 setup hits (3d) with net bearish as of 2026-09-09.
What can break
Cash generation remains weak, with first-half operating cash flow negative $17.6 million and quarter-end cash, cash equivalents, and marketable securities down to $88.3 million from $155.1 million at fiscal year-end. [#10-Q-2026-05-07]
Momentum
99
Value
54
Sentiment
15
Setup hits (3d)
1 · Net Bearish
AI TargetsBase $11.00 · Bull $14.50 · Bear $8.50Analysis 2026-05-08; returns require an exact persisted reference.
Data freshness
Prices
Unavailable: Price unavailable
Fundamentals
As of 2026-08-17 • Vendor: Data Vendor v1
Scores
As of 2026-09-09 • Model: HYBRID_IC_RP
AI Memo
As of 2026-05-08 • Model: RankAlpha Sentiment Codex
Investment thesis
As of 2026-09-09

Grade is the composite factor band; factor scores use a 0–100 scale. Confidence describes evidence quality, not a probability of return. Score date: 2026-09-09. Definitions

Supporting evidence
What
Grade F · Defensive
Confidence Medium · Net Bearish
Target $18.90
Why
Momentum99 · Δ7d -0.5
Value54 · Δ7d -0.0
Sentiment15 · Δ7d +3.0
So what
Weak posture (Net Bearish). Prioritize risk control and patience.

Confirming evidence

  • • 1 setup hits (3d) with net bearish as of 2026-09-09.
  • • Value remains the lead driver in the composite, 7D delta -0.0.

Contradictions & invalidation

  • • Cash generation remains weak, with first-half operating cash flow negative $17.6 million and quarter-end cash, cash equivalents, and marketable securities down to $88.3 million from $155.1 million at fiscal year-end. [#10-Q-2026-05-07]
  • • Customer concentration remains meaningful: one customer represented 19% of quarterly revenue and the top ten customers represented about 52% of quarterly revenue. [#10-Q-2026-05-07]
  • • The bearish read is that profitability and cash conversion remain weak: Q2 non-GAAP gross margin fell to 34%, GAAP EPS was a loss of $0.19, first-half operating cash flow was negative $17.6 million, inventories rose materially, and the stock's sharp May 8, 2026 selloff suggests investors are not yet willing to underwrite a clean second-half recovery.

Catalyst clock

2026-05-08

Fiscal Q2 results were in range, but the market is reacting to softer profitability and only modest second-half growth guidance

Lead driver: Value · See fundamentals
Momentum
99
9% active weight
Current posture
7d trendFlat
Δ7d
-0.5
Δ21d
-0.2
Value
54
28% active weight
Current posture
7d trendFlat
Δ7d
-0.0
Δ21d
+0.5
Sentiment
15
62% active weight
Current posture
7d trendImproving
Δ7d
+3.0
Δ21d
+2.2
Why this grade

Composite grade F. Momentum 98.9 / Value 54.1 / Sentiment 15.2

Scenario snapshot

Scenario probability is memo-authored likelihood, not forecast certainty. Targets belong to the analysis dated 2026-05-08. Scenario method

B+
Bull case
0%
Probability
Target price
$14.50
Analysis reference price unavailable
Analysis 2026-05-08 · RankAlpha Sentiment Codex
Most likely
B
Base case
1%
Probability
Target price
$11.00
Analysis reference price unavailable
Analysis 2026-05-08 · RankAlpha Sentiment Codex
B-
Bear case
0%
Probability
Target price
$8.50
Analysis reference price unavailable
Analysis 2026-05-08 · RankAlpha Sentiment Codex
Fundamentals (TTM)
As of 2026-08-17
Market Cap
$778.06M
Beta
0.89
Shares Out
42.15M
P/E (TTM) · Derived
20.3
P/S (TTM)
0.61
P/FCF (TTM)
27.45
Rev YoY
+3.7%
EPS YoY
-117.2%
Gross Margin
+34.3%
Op Margin
+8.3%
Net Debt
$218.4M
Current Ratio
3.38
As of 2026-09-09 • Updated nightlySource: Internal modelMethods & Data