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Glaukos (GKOS) Reaches 52-Week High: What's Aiding the Stock?
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Shares of Glaukos Corporation (GKOS - Free Report) scaled a new 52-week high of $111.47 on May 13, before closing the session slightly lower at $108.36.
Over the past year, this Zacks Rank #3 (Hold) stock has surged 80.9% compared with the 5.8% rise of the industry and the S&P 500’s 26.5% growth.
The company’s expected growth rate of 0.4% for 2024 compares with the industry’s growth projection of 14.1%.
Glaukos is witnessing an upward trend in its stock price, prompted by its strength in its flagship iStent. The optimism led by a solid first-quarter 2024 performance and robust business potential are expected to contribute further. However, vendor uncertainty and pipeline setbacks continue to concern the company.
Image Source: Zacks Investment Research
Let’s delve deeper.
Key Growth Drivers
Strength in iStent: Investors are optimistic about Glaukos’ prospects with respect to its iStent. Currently, the iStent procedure is reimbursed in the United States by Medicare and all major national private payors. It is also commercially available in certain European Union countries, Brazil, Canada, Australia, Japan and other countries.
During the first quarter of 2024, GKOS’s glaucoma franchise witnessed growth in revenues driven by its iStent portfolio. The company has been continuing to make enrolment progress in several clinical trials, which include a premarket approval pivotal trial for iStent infinite in mild to moderate glaucoma patients.
Robust Business Potential: Investors are optimistic about continued strong demand across international glaucoma and Corneal Health franchises. The commercial launch of Glaukos’ iStent infinite earlier in 2023 boosted the U.S. glaucoma franchise, which will likely drive growth in the upcoming few quarters.
In the first quarter of 2024. GKOS commenced the initial phases of the controlled launch plan for iDose TR post its FDA approval. A unique permanent J-code, along with CPT codes for iDose TR, has been assigned by the Centers for Medicare & Medicaid Services.
Strong Q1 Results: Glaukos’ robust first-quarter 2024 results raise investors’ optimism. The company continued to invest in its product pipeline. Per management, GKOS is targeting NDA submission for its corneal cross-linking therapy, Epioxa, by the end of 2024, which is currently progressing toward the second Phase 3 pivotal trial completion.
Downsides
Pipeline Setbacks: Although Glaukos has a promising pipeline, it has faced setbacks with clinical development or regulatory activities. Any potential clinical or regulatory setbacks can lead to an adverse impact on the company’s share price, thereby hurting investors’ wealth. The FDA denied approval to a pre-market approval application for ab-externo device for glaucoma, MicroShunt. The company is currently evaluating alternate regulatory pathways for approval, and commercial launch in the United States remains uncertain.
Vendor Uncertainty: Glaukos currently relies on a limited number of third-party suppliers, in some cases sole suppliers, to supply components for the iStent, the iStent inject models and other pipeline products. If any one or more of these suppliers cease to provide the company with sufficient quantities of components or drugs in a timely manner or on acceptable terms, the company would have to seek alternative sources of supply.
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 41.5% compared with the industry’s 23.7% rise in the past year.
Veeva Systems, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 24.1%. VEEV’s earnings surpassed estimates in each of the trailing four quarters, with the average being 8.5%.
Veeva Systems has gained 16% compared with the industry’s 47.7% rise in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.5%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.3%.
Ecolab’s shares have rallied 33.7% against the industry’s 10.2% decline in the past year.
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Glaukos (GKOS) Reaches 52-Week High: What's Aiding the Stock?
Shares of Glaukos Corporation (GKOS - Free Report) scaled a new 52-week high of $111.47 on May 13, before closing the session slightly lower at $108.36.
Over the past year, this Zacks Rank #3 (Hold) stock has surged 80.9% compared with the 5.8% rise of the industry and the S&P 500’s 26.5% growth.
The company’s expected growth rate of 0.4% for 2024 compares with the industry’s growth projection of 14.1%.
Glaukos is witnessing an upward trend in its stock price, prompted by its strength in its flagship iStent. The optimism led by a solid first-quarter 2024 performance and robust business potential are expected to contribute further. However, vendor uncertainty and pipeline setbacks continue to concern the company.
Image Source: Zacks Investment Research
Let’s delve deeper.
Key Growth Drivers
Strength in iStent: Investors are optimistic about Glaukos’ prospects with respect to its iStent. Currently, the iStent procedure is reimbursed in the United States by Medicare and all major national private payors. It is also commercially available in certain European Union countries, Brazil, Canada, Australia, Japan and other countries.
During the first quarter of 2024, GKOS’s glaucoma franchise witnessed growth in revenues driven by its iStent portfolio. The company has been continuing to make enrolment progress in several clinical trials, which include a premarket approval pivotal trial for iStent infinite in mild to moderate glaucoma patients.
Robust Business Potential: Investors are optimistic about continued strong demand across international glaucoma and Corneal Health franchises. The commercial launch of Glaukos’ iStent infinite earlier in 2023 boosted the U.S. glaucoma franchise, which will likely drive growth in the upcoming few quarters.
In the first quarter of 2024. GKOS commenced the initial phases of the controlled launch plan for iDose TR post its FDA approval. A unique permanent J-code, along with CPT codes for iDose TR, has been assigned by the Centers for Medicare & Medicaid Services.
Strong Q1 Results: Glaukos’ robust first-quarter 2024 results raise investors’ optimism. The company continued to invest in its product pipeline. Per management, GKOS is targeting NDA submission for its corneal cross-linking therapy, Epioxa, by the end of 2024, which is currently progressing toward the second Phase 3 pivotal trial completion.
Downsides
Pipeline Setbacks: Although Glaukos has a promising pipeline, it has faced setbacks with clinical development or regulatory activities. Any potential clinical or regulatory setbacks can lead to an adverse impact on the company’s share price, thereby hurting investors’ wealth. The FDA denied approval to a pre-market approval application for ab-externo device for glaucoma, MicroShunt. The company is currently evaluating alternate regulatory pathways for approval, and commercial launch in the United States remains uncertain.
Vendor Uncertainty: Glaukos currently relies on a limited number of third-party suppliers, in some cases sole suppliers, to supply components for the iStent, the iStent inject models and other pipeline products. If any one or more of these suppliers cease to provide the company with sufficient quantities of components or drugs in a timely manner or on acceptable terms, the company would have to seek alternative sources of supply.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Veeva Systems Inc. (VEEV - Free Report) and Ecolab Inc. (ECL - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 13.6%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 29.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 41.5% compared with the industry’s 23.7% rise in the past year.
Veeva Systems, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 24.1%. VEEV’s earnings surpassed estimates in each of the trailing four quarters, with the average being 8.5%.
Veeva Systems has gained 16% compared with the industry’s 47.7% rise in the past year.
Ecolab, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.5%. ECL’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 1.3%.
Ecolab’s shares have rallied 33.7% against the industry’s 10.2% decline in the past year.