Leading manufacturer and distributor of magnetic resonance imaging (MRI) compatible products, IRADIMED CORPORATION (IRMD Quick QuoteIRMD - Free Report) recently announced the receipt of 510(k) clearance for its MRidium 3860+ magnetic MRI compatible IV infusion pump system, which features the Dose Error Reduction System software (DERS).

For the last six months, the stock represents a negative return of almost 41.6%, wider than the Zacks categorized Medical Instruments sub-industry’s negative return of roughly 2.2%. However, the stock gained almost 3.7% to close at $12.55 following the announcement of the news.

IRADIMED’s long-term growth fundamentals are compelling. The company recorded a three-year CAGR of 70.6% for revenues and 39.2% for adjusted earnings per share.

Meanwhile, the estimate revision trend holds some promise, with one estimate moving north over the past two months and no movement in the opposite direction. Notably, the current year estimates for the stock increased by 4 cents to 55 cents per share over the same time frame. Additionally, the stock promises an earnings yield of 4.7%, compared to the industry’s negative yield of 4.3%.

Coming back to the development, the MRidium system provides a proficient approach that paves way for safe fluid delivery during and after an MRI scan for critically-ill patients. Additionally, the DERS feature in the system creates a unique drug library, which ensures ‘patient safety’ and ‘user convenience’.

IRADIMED CORP Price

IRADIMED CORP Price | IRADIMED CORP Quote

Per management, the development is likely to fortify the company’s foothold in the MRI markets. In fact, buoyed by the regulatory approval, the company now plans to finalize the launch of its ‘MRI compatible patient vital signs monitoring system’ in the coming quarters.

Our Take

IRADIMED is a leading player in magnetic resonance imaging (MRI) procedures. On this note, a research report by Markets And Markets reveals that the global MRI systems market is expected to reach a worth of $7.19 billion by 2021, multiplying at a CAGR of 5.1%.The latest development is expected to strengthen the company’s foothold in the niche markets.

Meanwhile, in the last reported quarter, the company registered adjusted earnings of 13 cents per share, beating the Zacks Consensus Estimate of 9 cents. In fact, the stock represents an average earnings surprise of almost 10.1% (for the last four trailing quarters), a significant positive in our view.

Zacks Rank & Other Key Picks

Currently, IRADIMED has a Zacks Rank #2 (Buy).

Other favorably ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS Quick QuoteADUS - Free Report) , LHC Group, Inc. and HMS Holdings Corp. . Addus HomeCare and LHC Group sport a Zacks Rank #1 (Strong Buy) while HMS Holdings carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 42.9%.

LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 2.8% in the last one month.

HMS Holdings has an expected earnings growth of almost 14.3%. The company posted a promising year-to-date return of 48.5%.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>