Key Highlights

● GE HealthCare raised its full-year outlook after quarterly results.

● The company makes CT, MRI, X-ray and ultrasound equipment.

● Hospitals buy imaging equipment in multiyear cycles.

● Health care was among the stronger sectors that session.

GE HealthCare Technologies (NASDAQ:GEHC) jumped on Wednesday, October 28, after lifting its full-year guidance, putting the stock among the strongest performers in the S&P 500.

Market data listed GE HealthCare alongside Vertiv and other large gainers moving higher on the day, and the shares held their gains through the close.

A Higher Outlook

The key driver was the guidance increase. GE HealthCare raised its full-year outlook after its quarterly results, according to market reports, giving investors an updated view of its trajectory for the rest of the year.

A raise this late in the year is meaningful. With only the fourth quarter left, management has good visibility into orders and shipments, so investors often read an upgrade as a sign that business is tracking better than planned.

What GE HealthCare Does

GE HealthCare makes medical imaging equipment, including CT scanners, MRI machines, X-ray systems and ultrasound devices, as well as patient monitoring equipment and the pharmaceutical agents used in diagnostic scans. It was spun off from General Electric and now trades as a standalone company on the Nasdaq.

Hospitals tend to buy imaging equipment in multiyear cycles, and the business also generates recurring revenue from service contracts and consumables. Investors watch orders closely as a guide to future sales.

Health Care's Mixed Day

Health care was among the eight of 11 S&P 500 sectors that finished higher. Labcorp (NYSE:LH) surged after raising its full-year EPS guidance, while Boston Scientific (NYSE:BSX) slid after trimming its forecast, with chief executive Mike Mahoney describing a challenging year.

The split showed how closely investors were weighing guidance changes on Wednesday, with raised outlooks drawing buyers and trimmed forecasts drawing sellers. About 200 S&P 500 companies have reported so far, and a large majority have beaten estimates, according to LSEG data.

What to Watch

The S&P 500 rose 21.38 points to 7,743.98, its third straight gain, with technology and energy leading the advance. Utilities and real estate lagged as long-dated Treasury yields climbed.

Merck (NYSE:MRK) reports before Thursday's open, giving investors another look at the health-care sector, along with Mastercard (NYSE:MA) and Caterpillar (NYSE:CAT). The advance third-quarter GDP estimate and September PCE inflation data arrive at 8:30 a.m. ET on Thursday.