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Here's Why You Must Add Surmodics (SRDX) to Your Portfolio
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Surmodics, Inc (SRDX - Free Report) is currently a top performer in the MedTech space. Improved price performance and strong fundamentals instill investors’ optimism in the stock. Therefore, its time you take advantage of the stock price appreciation.
The stock has rallied 20.9% to $405.67. Further, the company’s shares have surged 185.4% against the industry’s decline of 1.8% in a year’s time. The current level is also higher than the S&P 500 index’s return of 12.9%.
In the last 60 days, the Zacks Consensus Estimate narrowed down from 25 cents to a loss of 2 cents per share for 2018. The company has a Zacks Rank #2 (Buy), which indicates possibility of outperformance in the near term.
Furthermore, the stock carries a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, are better picks.
Let’s find out whether the bullish trend can sustain the stock’s impressive performance in the long run.
Surmodics’ efforts to improve research and development stature have been a key growth driver. The company’s whole product solutions pipeline and sirolimus-based below-the-knee DCB program deserve a mention here. Surmodics has been making progress through its internally developed .014 balloon platform.
The company has been working through the preclinical studies for the data package that will be used to determine the readiness for first in-human clinical trial. The company is expected to make continued progress throughout the rest of fiscal 2018. The company has also made significant progress in the development of AV fistula drug-coated balloon.
In the non-drug delivery R&D pipeline, Surmodics recently got the FDA clearance for its Telemark support microcatheter. The Telemark support microcatheter offers superior crossability for complex coronary and peripheral lesions.
Further, Surmodics' pristine hydrophilic coating offers best in class lubricity and low particulates. It is available only in Surmodics' proprietary products.
R&D expenses in the second quarter of fiscal 2018 were 56.5% of net sales, up from 46.5% in the year-ago quarter. The company anticipates R&D expense to rise in fiscal 2018, due to whole product solution strategy investments, advancing the TRANSCEND drug coater balloon human clinical trial, preclinical work on below-the-knee platform and AV fistula drug-coated balloon projects.
Considering Surmodics’ strength in the R&D prospects, the company has long-term goals of generating double-digit top line growth by the end of fiscal 2019 and generating EBITDA margins at or above 30% by fiscal 2021.
Other Key Picks
A few other top-ranked stocks in the broader medical space are Abiomed, Inc , Genomic Health Inc and Varian Medical Systems, Inc .
Genomic Health has an expected earnings growth rate of 187.5% and a Zacks Rank #1.
Varian Medical has a projected long-term earnings growth rate of 8%. The stock carries a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Here's Why You Must Add Surmodics (SRDX) to Your Portfolio
Surmodics, Inc (SRDX - Free Report) is currently a top performer in the MedTech space. Improved price performance and strong fundamentals instill investors’ optimism in the stock. Therefore, its time you take advantage of the stock price appreciation.
The stock has rallied 20.9% to $405.67. Further, the company’s shares have surged 185.4% against the industry’s decline of 1.8% in a year’s time. The current level is also higher than the S&P 500 index’s return of 12.9%.
In the last 60 days, the Zacks Consensus Estimate narrowed down from 25 cents to a loss of 2 cents per share for 2018. The company has a Zacks Rank #2 (Buy), which indicates possibility of outperformance in the near term.
Surmodics, Inc. Price and Consensus
Surmodics, Inc. Price and Consensus | Surmodics, Inc. Quote
Furthermore, the stock carries a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, are better picks.
Let’s find out whether the bullish trend can sustain the stock’s impressive performance in the long run.
Surmodics’ efforts to improve research and development stature have been a key growth driver. The company’s whole product solutions pipeline and sirolimus-based below-the-knee DCB program deserve a mention here. Surmodics has been making progress through its internally developed .014 balloon platform.
The company has been working through the preclinical studies for the data package that will be used to determine the readiness for first in-human clinical trial. The company is expected to make continued progress throughout the rest of fiscal 2018. The company has also made significant progress in the development of AV fistula drug-coated balloon.
In the non-drug delivery R&D pipeline, Surmodics recently got the FDA clearance for its Telemark support microcatheter. The Telemark support microcatheter offers superior crossability for complex coronary and peripheral lesions.
Further, Surmodics' pristine hydrophilic coating offers best in class lubricity and low particulates. It is available only in Surmodics' proprietary products.
R&D expenses in the second quarter of fiscal 2018 were 56.5% of net sales, up from 46.5% in the year-ago quarter. The company anticipates R&D expense to rise in fiscal 2018, due to whole product solution strategy investments, advancing the TRANSCEND drug coater balloon human clinical trial, preclinical work on below-the-knee platform and AV fistula drug-coated balloon projects.
Considering Surmodics’ strength in the R&D prospects, the company has long-term goals of generating double-digit top line growth by the end of fiscal 2019 and generating EBITDA margins at or above 30% by fiscal 2021.
Other Key Picks
A few other top-ranked stocks in the broader medical space are Abiomed, Inc , Genomic Health Inc and Varian Medical Systems, Inc .
Abiomed has a long-term earnings growth rate of 27%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Genomic Health has an expected earnings growth rate of 187.5% and a Zacks Rank #1.
Varian Medical has a projected long-term earnings growth rate of 8%. The stock carries a Zacks Rank #2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>