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Haemonetics (HAE) at 52-Week High: What's Driving the Stock?

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Shares of Haemonetics Corporation (HAE - Free Report) scaled a new 52-week high of $58.02 on Nov 17, closing nominally lower at $57.99. The company has gained 43.9% in the last six months, much higher than the S&P 500’s gain of 7.8%. Haemonetics has also beat the broader industry’s gain of 7.3%. The stock has a market cap of $3.06 billion.

Further, Haemonetics’ estimate revision trend for the current year is favorable. In the past 30 days, five estimates moved up with no movement in the opposite direction. Consequently, estimates were up from $1.61 per share to $1.70.

The company also has a trailing four-quarter average positive earnings surprise of 9.1%. Its long-term growth of 7.8% holds promise as well.

Growth Drivers

The market is upbeat about Haemonetics’ impressive second-quarter performance, with year-over-year growth in earnings and revenues. Continued expansion in newer geographies has helped the company deliver strong results in the recent past. Meanwhile, a strong cash position boosts investors’ confidence. Further, the raised fiscal 2018 adjusted earnings guidance is encouraging. 

The company is now focusing on the development and launch of NexSys PCS plasmapheresis system. Management is optimistic about strong market adoption of its NexSys PCS plasmapheresis system. Notably, the NexSys PCS plasmapheresis device recently received FDA approval. The company has also planned a limited market release of the device this winter. Also, the company plans a second and more advanced limited market release wherein some enhancements will be introduced.

All these factors are expected to boost the company’s share price.

Zacks Rank & Key Picks

Haemonetics carries a Zacks Rank #3 (Hold).

A few better-ranked medical stocks are PetMed Express, Inc. (PETS - Free Report) , Align Technology, Inc. (ALGN - Free Report) and Myriad Genetics, Inc. (MYGN - Free Report) . Notably, PetMed, Align Technology and Myriad Genetics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

PetMed has a long-term expected earnings growth rate of 10%. The stock has rallied roughly 76.6% in a year.

Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 163.9% in a year.

Myriad Genetics has a long-term expected earnings growth rate of 15%. The stock has gained 91.6% over a year.

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