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Why Investors Should Buy Edwards Lifesciences (EW) Right Now
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Leading CA-based medical equipment major Edwards Lifesciences Corporation (EW - Free Report) is currently on a healthy growth trajectory. It has rallied 20% over the past one year, ahead of the S&P 500’s 15.5% gain. The stock has a market cap of $24.94 billion.
For the majority of the last three months, the company has been trading above the Zacks categorized Medical - Instruments industry. The stock has gained 26.1%, way higher than the broader industry’s gain of 10.9%.
The company’s current estimate revision trend is also positive. For the current quarter, there have been six upward revisions versus one downward revision in the last 60 days. For the current year, ten analysts have raised their earnings estimates in the same period.
As a result, the magnitude of current quarter revision increased by 1.1% to 88 cents while that of the current year has risen to 3.5% to $3.52.
The company carries a Zacks Rank #2 (Buy), which makes it an attractive pick for investors right now. Let’s find out whether the recent positive trend is a sustainable one.
Edwards Lifesciences’ financial outlook for 2017 reflects the company’s long-term growth strategy and recent progress in its technology pipeline. In the last reported first quarter, management raised the lower end of the 2017 revenue guidance which indicates a bullish trend.
Of late, the company has been witnessing multiple developments in its transcatheter heart valve (THV) segment. The company recently received FDA approval for aortic and mitral valve-in-valve procedures using SAPIEN 3 THV. Management also released positive patient outcomes of SAPIEN 3 valve including high survival rates and low rates of stroke and paravalvular leak. In another study, Edwards Lifesciences’ CENTERA valve displayed favorable results for transcatheter aortic valve replacement patients.
Also, we are optimistic to note that management is striving to strengthen its hold in Asia. The company is also looking forward to launch its INSPIRIS RESILIA aortic valve by the end of 2017 in Japan.
However, a major downside to the current rank is foreign exchange headwinds which continue to remain a major dampener for the company’s international businesses. Moreover, a competitive landscape in the overseas market mars Edwards Lifesciences’ prospects.
Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has added roughly 33% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has gained around 28% over the last three months.
Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has gained roughly 30.1% over the last three months.
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Why Investors Should Buy Edwards Lifesciences (EW) Right Now
Leading CA-based medical equipment major Edwards Lifesciences Corporation (EW - Free Report) is currently on a healthy growth trajectory. It has rallied 20% over the past one year, ahead of the S&P 500’s 15.5% gain. The stock has a market cap of $24.94 billion.
For the majority of the last three months, the company has been trading above the Zacks categorized Medical - Instruments industry. The stock has gained 26.1%, way higher than the broader industry’s gain of 10.9%.
The company’s current estimate revision trend is also positive. For the current quarter, there have been six upward revisions versus one downward revision in the last 60 days. For the current year, ten analysts have raised their earnings estimates in the same period.
As a result, the magnitude of current quarter revision increased by 1.1% to 88 cents while that of the current year has risen to 3.5% to $3.52.
The company carries a Zacks Rank #2 (Buy), which makes it an attractive pick for investors right now. Let’s find out whether the recent positive trend is a sustainable one.
Edwards Lifesciences’ financial outlook for 2017 reflects the company’s long-term growth strategy and recent progress in its technology pipeline. In the last reported first quarter, management raised the lower end of the 2017 revenue guidance which indicates a bullish trend.
Of late, the company has been witnessing multiple developments in its transcatheter heart valve (THV) segment. The company recently received FDA approval for aortic and mitral valve-in-valve procedures using SAPIEN 3 THV. Management also released positive patient outcomes of SAPIEN 3 valve including high survival rates and low rates of stroke and paravalvular leak. In another study, Edwards Lifesciences’ CENTERA valve displayed favorable results for transcatheter aortic valve replacement patients.
Also, we are optimistic to note that management is striving to strengthen its hold in Asia. The company is also looking forward to launch its INSPIRIS RESILIA aortic valve by the end of 2017 in Japan.
However, a major downside to the current rank is foreign exchange headwinds which continue to remain a major dampener for the company’s international businesses. Moreover, a competitive landscape in the overseas market mars Edwards Lifesciences’ prospects.
Other Key Picks
Other top-ranked medical stocks are Align Technology, Inc. (ALGN - Free Report) , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Notably, Align Technology and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has added roughly 33% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock has gained around 28% over the last three months.
Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has gained roughly 30.1% over the last three months.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>