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On Jul 16, we issued an updated research report on AngioDynamics (ANGO - Free Report) . It is currently one of the underperforming stocks in the MedTech space. A soft fiscal fourth-quarter performance and high debt levels raise concern.
The stock currently carries a Zacks Rank #5 (Strong Sell).
Over the last 60 days, the Zacks Consensus Estimate for AngioDynamics’ current-year earnings fell 7.5% to 86 cents.
AngioDynamics’ growth in the fiscal fourth quarter was offset by underperformance by the Venous Insufficiency business and PICC product lines. The Venous Insufficiency business saw a soft quarter primarily due to discontinuation of exclusive use of EVLT (Endovenous Laser System) products by the company’s largest customer.
Furthermore, the core Peripheral Vascular segment declined 2.5% on a year-over-year basis to $52.6 million. Per management, growth in the Fluid Management, Angiographic catheters and AngioVac product lines was offset by declines in the Venous Insufficiency and Thrombolytic businesses.
Vascular Access net sales totaled $23.7 million, down 2.4% from the year-ago quarter. Per management, growth in Ports and Dialysis products was offset by declines in PICCs.
AngioDynamics exited the fourth quarter with a high debt of $92.5 million. Higher debt levels impose certain operating and financial restrictions which limit the company’s execution of core business strategies. Additionally, it may cause the company to reduce or delay planned expansion and capital expenditures or sell assets.
Lastly, the company faces stiff competition from medical device bigwigs like Boston Scientific (BSX - Free Report) and Merit Medical (MMSI - Free Report) . Moreover, despite being able to sell off a bulk of its manufactured products, pricing pressure from GPO contracts could adversely affect selling prices and in turn profitability.
Price Performance
Over the past three months, the company’s shares have gained 1.9%, underperforming the S&P 500 index’s rally of 3.8%. The industry declined 4.4% over the same time frame.
Key Pick
A better-ranked stock in the broader medical space is Genomic Health .
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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AngioDynamics (ANGO) Q4 Performance Dull, Competition Rife
On Jul 16, we issued an updated research report on AngioDynamics (ANGO - Free Report) . It is currently one of the underperforming stocks in the MedTech space. A soft fiscal fourth-quarter performance and high debt levels raise concern.
The stock currently carries a Zacks Rank #5 (Strong Sell).
Over the last 60 days, the Zacks Consensus Estimate for AngioDynamics’ current-year earnings fell 7.5% to 86 cents.
AngioDynamics, Inc. Price and Consensus
AngioDynamics, Inc. Price and Consensus | AngioDynamics, Inc. Quote
What’s Acting Against the Stock?
AngioDynamics’ growth in the fiscal fourth quarter was offset by underperformance by the Venous Insufficiency business and PICC product lines. The Venous Insufficiency business saw a soft quarter primarily due to discontinuation of exclusive use of EVLT (Endovenous Laser System) products by the company’s largest customer.
Furthermore, the core Peripheral Vascular segment declined 2.5% on a year-over-year basis to $52.6 million. Per management, growth in the Fluid Management, Angiographic catheters and AngioVac product lines was offset by declines in the Venous Insufficiency and Thrombolytic businesses.
Vascular Access net sales totaled $23.7 million, down 2.4% from the year-ago quarter. Per management, growth in Ports and Dialysis products was offset by declines in PICCs.
AngioDynamics exited the fourth quarter with a high debt of $92.5 million. Higher debt levels impose certain operating and financial restrictions which limit the company’s execution of core business strategies. Additionally, it may cause the company to reduce or delay planned expansion and capital expenditures or sell assets.
Lastly, the company faces stiff competition from medical device bigwigs like Boston Scientific (BSX - Free Report) and Merit Medical (MMSI - Free Report) . Moreover, despite being able to sell off a bulk of its manufactured products, pricing pressure from GPO contracts could adversely affect selling prices and in turn profitability.
Price Performance
Over the past three months, the company’s shares have gained 1.9%, underperforming the S&P 500 index’s rally of 3.8%. The industry declined 4.4% over the same time frame.
Key Pick
A better-ranked stock in the broader medical space is Genomic Health .
Genomic Health has an expected earnings growth rate of 187.5%. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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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