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LeMatire Vascular (LMAT - Free Report) is a Zacks Rank #1 (Strong Buy) that has an F for the Value Style Score and a B for the Growth Style Score. As the aggressive growth stock strategist here at Zacks, I always lean to the growth side of things and when I see a weak value score and strong growth score I know I am already on the right path. Let’s take a deep look at this stock in this Bull of the Day article.
Description
LeMaitre Vascular, makes medical devices and implants for the treatment of peripheral vascular disease worldwide. It offers angioscopes, a range of catheters, and several other devices for blood and vein treatments. The company was formerly known as Vascutech, Inc. and changed its name to LeMaitre Vascular, Inc. in April 2001. LeMaitre Vascular, Inc. was incorporated in 1983 and is headquartered in Burlington, Massachusetts.
Earnings History
The first thing I do when I look at stock is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has been able to communicate to the market. A stock that consistently beats is one that has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For LMAT, I see good history of beating the Zacks Consensus Estimate. There are three beats on the last four quarters and the one time that wasn’t a beat was an earnings meet.
The average positive earnings surprise over the last fours quarters works out to be 131%, which suggests that they are posting results that are more than double what is expected. That isn’t the case as there was one quarter than had a 440% positive earnings surprise so that skews the average.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For LMAT, I see estimates moving higher across the board.
This quarter has moved from 27 cents to 28 cents.
Next quarter has seen a similar increase from 27 cents to 29 cents.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is even better for those numbers.
I see 2021 moving from $1.19 to $1.27 over the last 60 days.
The 2022 number has moved from $1.34 to $1.44 over the same time horizon.
Positive movement in earnings estimates like that are the reason that this stock is a Zacks Rank #1 (Strong Buy).
Valuation
Good growth is hard to find these days, buy LMAT has it. I see 24% topline growth in the most recent quarter and analysts are calling for more of the same. That growth means investors are paying up for shares of LMAT. I see a 42x forward earnings multiple and that is well ahead of the 31x industry average. The price to book at 6.4x is also ahead of the 4.1x industry average.
So why is the valuation so high for this name? Well the industry average is showing a contraction in growth rates for 2021 whereas this name is seeing an expansion. When something like that happens, portfolio managers are more likely to overweight the name that is seeing growth and that is keeping some pretty good support on the stock.
Chart
LeMaitre Vascular, Inc. Price, Consensus and EPS Surprise
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Bull Of The Day: LeMatire Vascular (LMAT)
LeMatire Vascular (LMAT - Free Report) is a Zacks Rank #1 (Strong Buy) that has an F for the Value Style Score and a B for the Growth Style Score. As the aggressive growth stock strategist here at Zacks, I always lean to the growth side of things and when I see a weak value score and strong growth score I know I am already on the right path. Let’s take a deep look at this stock in this Bull of the Day article.
Description
LeMaitre Vascular, makes medical devices and implants for the treatment of peripheral vascular disease worldwide. It offers angioscopes, a range of catheters, and several other devices for blood and vein treatments. The company was formerly known as Vascutech, Inc. and changed its name to LeMaitre Vascular, Inc. in April 2001. LeMaitre Vascular, Inc. was incorporated in 1983 and is headquartered in Burlington, Massachusetts.
Earnings History
The first thing I do when I look at stock is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has been able to communicate to the market. A stock that consistently beats is one that has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For LMAT, I see good history of beating the Zacks Consensus Estimate. There are three beats on the last four quarters and the one time that wasn’t a beat was an earnings meet.
The average positive earnings surprise over the last fours quarters works out to be 131%, which suggests that they are posting results that are more than double what is expected. That isn’t the case as there was one quarter than had a 440% positive earnings surprise so that skews the average.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For LMAT, I see estimates moving higher across the board.
This quarter has moved from 27 cents to 28 cents.
Next quarter has seen a similar increase from 27 cents to 29 cents.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is even better for those numbers.
I see 2021 moving from $1.19 to $1.27 over the last 60 days.
The 2022 number has moved from $1.34 to $1.44 over the same time horizon.
Positive movement in earnings estimates like that are the reason that this stock is a Zacks Rank #1 (Strong Buy).
Valuation
Good growth is hard to find these days, buy LMAT has it. I see 24% topline growth in the most recent quarter and analysts are calling for more of the same. That growth means investors are paying up for shares of LMAT. I see a 42x forward earnings multiple and that is well ahead of the 31x industry average. The price to book at 6.4x is also ahead of the 4.1x industry average.
So why is the valuation so high for this name? Well the industry average is showing a contraction in growth rates for 2021 whereas this name is seeing an expansion. When something like that happens, portfolio managers are more likely to overweight the name that is seeing growth and that is keeping some pretty good support on the stock.
Chart
LeMaitre Vascular, Inc. Price, Consensus and EPS Surprise
LeMaitre Vascular, Inc. price-consensus-eps-surprise-chart | LeMaitre Vascular, Inc. Quote
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In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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