Back to top

Image: Bigstock

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

Read MoreHide Full Article

Inogen, Inc. (INGN - Free Report) is currently one of the top-performing stocks in the MedTech space. A raised guidance for 2018 and solid global foothold are currently working in favor of the stock.

Shares Up

In the past year, shares of Inogen have skyrocketed 153.7% compared with the industry’s 30.7% rally. The current level is also higher than the S&P 500 index’s 15.9% increase.

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.

Factors That Make It an Attractive Pick

Inogen Joins S&P MidCap 400

With a market cap of $5.12 billion, Inogen recently replaced Rollins in the S&P MidCap 400 index. The company’s direct-to-customer business model has lent it a leading position in the oxygen therapy market. Furthermore, a solid revenue base is a contributing factor.

Over the last four years, the company’s revenues have seen a CAGR of 30.1% to $249 million.

Guidance Raised

Inogen raised its 2018 revenue guidance to the range of $340 to $350 million from $310 to $320 million, representing year-over-year growth of 36.3% to 40.3%.

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

The company’s 2018 adjusted net income guidance range is at $45 to $48 million, up from $38 to $41 million, representing year-over-year growth of 114.3% to 128.5%.

Strong Global Presence

Inogen has a strong international foothold. Germany is estimated to be the second largest market in Europe for medical oxygen systems. In fact, management confirmed that the outlook for European sales in 2018 is encouraging. For investors’ notice, Inogen received French reimbursement coverage of the Inogen One G4 in the last reported quarter.

Which Way Are Estimates Treading?

For the ongoing quarter, the Zacks Consensus Estimate for earnings is pegged at 52 cents, reflecting year-over-year growth of 57.6%. The same for revenues is pegged at $91.1 million, indicating an increase of 32% year over year.

For the full year, the Zacks Consensus Estimate for earnings is pegged at $2.07, reflecting growth of 58% from the year ago. The same for revenues stands at $349.6 million, showing an improvement of 40.2% from the previous year.

Inogen, Inc Price and Consensus

 

Inogen, Inc Price and Consensus | Inogen, Inc Quote

Other Key Picks

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

Intuitive Surgical has an expected long-term earnings growth of 14.7%. The stock has a Zacks Rank #2.

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

Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Best Electric Car Stock? You'll Never Guess It.

Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!

Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.

See Zacks Best EV Stock Free >>

Published in