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On May 28, we upgraded leading cardiac assist devices maker - Abiomed (ABMD - Analyst Report) to Outperform based on its record fourth-quarter fiscal 2013 results.

Why the Upgrade?

Abiomed’s fourth-quarter fiscal 2013 earnings per share (EPS) of 9 cents beat the Zacks Consensus Estimate by 28.6%. The Mass.-based company registered a profit of $3.7 million, substantially up 42.3% year over year.

Revenues for the aforementioned quarter climbed 17% year over year to $43.7 million, beating the Zacks Consensus Estimate of $42 million. This marked the 14th straight quarter, in which Abiomed recorded year-over-year double-digit growth.

Given its unique technology, Abiomed enjoys strong demand for its Impella products. The company posted record revenues in fiscal 2013. Moreover, patient support reached a record high in the same year. This is evident from 31% year-over-year growth in global Impella sales in fiscal 2013, which was above the company’s expected guidance.

Abiomed is a medical device company with a blue streak growth path. The guidance provided for fiscal 2014 appears to be encouraging. Both the Impella CP and RP are considered future growth drivers for the company. Multiple near-term drivers, including new products and clinical trials, should further boost the use of Impella. Abiomed also boasts a solid cash position.

Other Stocks to Consider

Besides Abiomed, other stocks in the medical device sector that are currently performing well include Cyberonics (CYBX - Analyst Report), Natus Medical (BABY - Snapshot Report) and Intuitive Surgical (ISRG - Analyst Report). Cyberonics and Natus carry a Zacks Rank #1 (Strong Buy), while Intuitive is a Zacks Rank #2 (Buy) stock.

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