We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ABIOMED Raised to Strong Buy: Should You Add the Stock?
Read MoreHide Full Article
On Sep 28, ABIOMED Inc. , a leading provider of breakthrough heart support technologies was raised to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
The upgrade was primarily driven by positive estimate revisions over the last 30 days. Notably, the Zacks Consensus Estimate has been raised by a penny to $1.15 per share for the current year, with one estimate moving higher over the past one month. However, the estimate mark for full-year 2017 moved up by 2 cents to $1.69 per share over the last three months.
A glimpse at the long-term expected earnings growth rate over the next five years reveals an impressive 26.7% rise, much better than the industry average of 19.7%.
Meanwhile, coming to the current share price trend, ABIOMED rallied almost 44% year to date, way better than the S&P 500’s 6.2% over the same time frame. The company has recorded a streak of positive surprises in the past four quarters, the average being 34.9%
The upgrade was supported by a series of notable developments, which include the recent regulatory approval of Impella 2.5 and Impella 5.0 heart pumps in Japan. Moreover, the company has been foraying ahead with international expansion and plans to open a new office in Tokyo.
In this regard, Impella has been a major growth driver for ABIOMED with a revenue contribution of $97.8 million (up 42% year over year) in the just-reported first quarter of 2017. In fact, Impella revenues grew 41% to $89.6 million in the U.S.
Meanwhile, we note that ABIOMED has registered first-quarter of 2017 revenues of $103.0 million (up 40% year over year) and adjusted earnings of 29 cents per share (up 45%), beating the Zacks Consensus Estimate on both the counts. Additionally, the company gained prominence in the last reported quarter with four FDA approvals, $223 million in cash and 365 clinical publications.
Of the other notable developments, the company’s vital study STITCHES got published in the New England Journal of Medicine. The study focuses on factors like lower mortality and improved outcomes associated with revascularization. The company also intends to expand its standard of care in Europe, with Germany being the primary focus.
CryoLife recorded an impressive year-to-date return of 65.4%, better than the S&P 500’s 6.2% over the same time frame. In fact, the company posted positive earnings surprises in the last four quarters, the average being 502.50%.
IDEXX represents a strong year-to-date return of 55.5%. The company also recorded a streak of positive earnings surprises over the last four quarters, the average being 12.7%.
Masimo has an impressive long-term expected earnings growth rate of 15% and a solid year-to-date return of 44.1%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
ABIOMED Raised to Strong Buy: Should You Add the Stock?
On Sep 28, ABIOMED Inc. , a leading provider of breakthrough heart support technologies was raised to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
The upgrade was primarily driven by positive estimate revisions over the last 30 days. Notably, the Zacks Consensus Estimate has been raised by a penny to $1.15 per share for the current year, with one estimate moving higher over the past one month. However, the estimate mark for full-year 2017 moved up by 2 cents to $1.69 per share over the last three months.
A glimpse at the long-term expected earnings growth rate over the next five years reveals an impressive 26.7% rise, much better than the industry average of 19.7%.
Meanwhile, coming to the current share price trend, ABIOMED rallied almost 44% year to date, way better than the S&P 500’s 6.2% over the same time frame. The company has recorded a streak of positive surprises in the past four quarters, the average being 34.9%
ABIOMED INC Price and Consensus
ABIOMED INC Price and Consensus | ABIOMED INC Quote
Growth Factors
The upgrade was supported by a series of notable developments, which include the recent regulatory approval of Impella 2.5 and Impella 5.0 heart pumps in Japan. Moreover, the company has been foraying ahead with international expansion and plans to open a new office in Tokyo.
In this regard, Impella has been a major growth driver for ABIOMED with a revenue contribution of $97.8 million (up 42% year over year) in the just-reported first quarter of 2017. In fact, Impella revenues grew 41% to $89.6 million in the U.S.
Meanwhile, we note that ABIOMED has registered first-quarter of 2017 revenues of $103.0 million (up 40% year over year) and adjusted earnings of 29 cents per share (up 45%), beating the Zacks Consensus Estimate on both the counts. Additionally, the company gained prominence in the last reported quarter with four FDA approvals, $223 million in cash and 365 clinical publications.
Of the other notable developments, the company’s vital study STITCHES got published in the New England Journal of Medicine. The study focuses on factors like lower mortality and improved outcomes associated with revascularization. The company also intends to expand its standard of care in Europe, with Germany being the primary focus.
Key Picks
Other favorably ranked stocks in the broader medical sector include CryoLife Inc. , IDEXX Laboratories Inc. (IDXX - Free Report) and Masimo Corporation (MASI - Free Report) . All the companies sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
CryoLife recorded an impressive year-to-date return of 65.4%, better than the S&P 500’s 6.2% over the same time frame. In fact, the company posted positive earnings surprises in the last four quarters, the average being 502.50%.
IDEXX represents a strong year-to-date return of 55.5%. The company also recorded a streak of positive earnings surprises over the last four quarters, the average being 12.7%.
Masimo has an impressive long-term expected earnings growth rate of 15% and a solid year-to-date return of 44.1%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now >>