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Since I wrote about Penumbra (PEN - Free Report) for the Bull of the Day -- a prime innovator in the treatment of stroke with catheter-based technology -- I couldn't resist choosing the following Zacks #5 Rank for my Bear of the Day.
Silk Road Medical (SILK - Free Report) is a $1.8 billion medical device company focused on reducing the risk of stroke and its devastating impact, in particular during surgical procedures. The company has pioneered a new approach for the treatment of carotid artery disease called TransCarotid Artery Revascularization (TCAR).
TCAR is a clinically proven procedure combining surgical principles of neuroprotection with minimally invasive endovascular techniques to treat blockages in the carotid artery at risk of causing a stroke. Silk Road Medical is based in Sunnyvale, California.
Silk Road Medical reported quarterly results last week and announced a loss of $0.49 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.27 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -63.33%. A quarter ago, it was expected that this medical device maker would post a loss of $0.28 per share when it actually produced a loss of $0.31, delivering a surprise of -10.71%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Silk Road Medical posted revenues of $21.13 million for the quarter ended December 2020, missing the Zacks Consensus Estimate by just 0.5%. This compares to year-ago revenues of $18.63 million. The company has topped consensus revenue estimates three times over the last four quarters.
Since that report, the 2021 EPS consensus among 5 covering analysts has dropped from a loss of 75-cents to a loss of $1.44. And next year fell from a loss of 16-cents to a loss of $1.07.
Young, Innovative and Growing Fast
While the company's science appears exciting and promsing on the surface, investors are keenly focused on the growth rates. This year's consensus revenue projection is for a first breach of the $100 million mark, represening over 40% growth.
And next year is currently pegged at $144M, for a 37% advance.
This kind of sales growth -- even absent profit growth -- probably justifies the valuation as the company trades for nearly 20X forward sales estimates.
While I like Silk Road Medical's apparent expertise and growth thus far, I must admit I haven't done a lot of research here since I just discovered the company this week.
It will be a young Med-Tech company I plan to keep an eye on, especially when the estimates turn back north. The Zacks Rank will let us know.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
Bear of the Day: Silk Road Medical (SILK)
Since I wrote about Penumbra (PEN - Free Report) for the Bull of the Day -- a prime innovator in the treatment of stroke with catheter-based technology -- I couldn't resist choosing the following Zacks #5 Rank for my Bear of the Day.
Silk Road Medical (SILK - Free Report) is a $1.8 billion medical device company focused on reducing the risk of stroke and its devastating impact, in particular during surgical procedures. The company has pioneered a new approach for the treatment of carotid artery disease called TransCarotid Artery Revascularization (TCAR).
TCAR is a clinically proven procedure combining surgical principles of neuroprotection with minimally invasive endovascular techniques to treat blockages in the carotid artery at risk of causing a stroke. Silk Road Medical is based in Sunnyvale, California.
Silk Road Medical reported quarterly results last week and announced a loss of $0.49 per share versus the Zacks Consensus Estimate of a loss of $0.30. This compares to loss of $0.27 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -63.33%. A quarter ago, it was expected that this medical device maker would post a loss of $0.28 per share when it actually produced a loss of $0.31, delivering a surprise of -10.71%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Silk Road Medical posted revenues of $21.13 million for the quarter ended December 2020, missing the Zacks Consensus Estimate by just 0.5%. This compares to year-ago revenues of $18.63 million. The company has topped consensus revenue estimates three times over the last four quarters.
Since that report, the 2021 EPS consensus among 5 covering analysts has dropped from a loss of 75-cents to a loss of $1.44. And next year fell from a loss of 16-cents to a loss of $1.07.
Young, Innovative and Growing Fast
While the company's science appears exciting and promsing on the surface, investors are keenly focused on the growth rates. This year's consensus revenue projection is for a first breach of the $100 million mark, represening over 40% growth.
And next year is currently pegged at $144M, for a 37% advance.
This kind of sales growth -- even absent profit growth -- probably justifies the valuation as the company trades for nearly 20X forward sales estimates.
While I like Silk Road Medical's apparent expertise and growth thus far, I must admit I haven't done a lot of research here since I just discovered the company this week.
It will be a young Med-Tech company I plan to keep an eye on, especially when the estimates turn back north. The Zacks Rank will let us know.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>