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Here's Why You Should Hold on to Nevro (NVRO) Stock Now

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Nevro Corp. (NVRO - Free Report) is well-poised for growth, backed by strong international presence, solid prospects in the Spinal Cord Stimulation (SCS) market and commitment toward innovation. However, intense competition is a persistent concern.

The stock currently carries a Zacks Rank #3 (Hold).

Price Performance

Shares of Nevro have soared 67.3%, outperforming the industry’s growth of 16.3% on a year-to-date basis. Further, the stock has outpaced the S&P 500 Index’s 16% rally.



What’s Weighing on the Stock?

Intense rivalry in the SCS market is a worry for the company. Per management, the primary competitive factors are company brand recognition, clinical research leadership, pricing and reimbursement et al.

Factors to Bolster Nevro

Nevro continues to benefit from its sturdy international foothold, thereby driving the company’s overall performance. Per management, growth in Europe is anticipated to bump up worldwide revenues in 2019.

Further, robust prospects in the SCS market have been favoring the company over a considerable period of time. Aging demographics, high cost related to therapy, strict regulatory approvals and an excessive reliance on the traditional SCS therapy are the major factors bracing the global SCS market.

Per a Market Data Forecast report, the global SCS market is estimated to reach $2,827.4 million at a CAGR of 8.6% (between 2018 and 2023).

Consistent focus on innovation has been crucial in boosting the company’s overall performance.

Which Way Are Estimates Headed?

For 2019, the Zacks Consensus Estimate for revenues is pegged at $367.9 million, indicating a decline of 5% from the year-ago reported figure. For adjusted loss per share, the same stands at $3.83.

Key Picks

Some better-ranked stocks from the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Oxford Immunotec Global PLC and Haemonetics Corporation (HAE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Integer Holdings has earnings growth rate for second quarter of 2019 of 5.66%.

Oxford Immunotec has a long-term earnings growth rate of 25%.

Haemonetics has a long-term earnings growth rate 13.5%.

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Haemonetics Corporation (HAE) - free report >>

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Integer Holdings Corporation (ITGR) - free report >>

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