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Here's Why You Should Buy Inogen (INGN) Stock Right Now

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Inogen, Inc. (INGN - Free Report) is currently one of the top performing stocks in the MedTech space. Solid second-quarter results and a raised guidance are currently favoring the stock.

Shares Up

In the past year, shares of Inogen have skyrocketed 167.9% against the industry’s decline of 3.7%.

This Zacks Rank #2 (Buy) stock currently has a Growth Score of A. This reflects possibilities of outperformance over the long haul. 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 than most.

For the current quarter, the Zacks Consensus Estimate for earnings per share is pegged at 51 cents, reflecting growth of 54.6%.

Let’s delve deeper.

Factors That Make It an Attractive Pick

Solid Q2 Results

Inogen recently reported strong second-quarter results, where both earnings per share and revenues beat the consensus mark. Sales revenues totaled $92 million, up 58.5% on a year-over-year basis.

Business-to-business sales in the United States totaled $32.9 million, up 55.7% on a year-over-year basis.

Additionally, direct-to-consumer revenues in the United States grossed $38.3 million in the reported quarter. This reflects an increase of 74.3% from the prior-year quarter.

Gross margin was 49.8%, which expanded 60 basis points (bps) in the quarter under review. Operating margin was 14.4%, up 110 bps.

Inogen, Inc Price and Consensus

 

Inogen, Inc Price and Consensus | Inogen, Inc Quote

Raised Guidance

Inogen raised its 2018 revenue guidance to $340-$350 million from $310-$320 million, representing year-over-year growth of 36.3% to 40.3%. The Zacks Consensus Estimate is pegged at $348.8 million, within the guided range.

Inogen expects direct-to-consumer sales to be its fastest-growing channel and domestic business-to-business sales to have significant growth rate in 2018.

Internationally, business-to-business sales are expected to register solid growth too as Inogen continues to focus on European markets. However, rental revenues are expected to decline 10% in 2018. The company’s 2018 adjusted net income guidance is at $45-$48 million, up from $38-$41 million, representing year-over-year growth of 114.3% to 128.5%.

Adjusted EBITDA for the year is expected between $65 million and $69 million, up from $62-$67 million, representing 27.9% to 35.7% year-over-year growth.

Global Prospects Bright

Inogen has confirmed that its outlook for European sales in 2018 remains optimistic.

In the second quarter of 2018, sales in Europe represented 88.3% of international sales, up from 87.6% in the year-ago quarter. Inogen’s European partners significantly contributed to the company’s business-to-business sales in the reported quarter.

Key Picks

Some other top-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Masimo Corporation (MASI - Free Report) .

Intuitive Surgical’s expected long-term earnings growth rate is 14.7%. The stock carries a Zacks Rank #2.

Integer Holdings has an expected growth rate of 12.6% for the next year. The stock flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Masimo’s long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2.

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