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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 on strong international presence, solid prospects in the Spinal Cord Stimulation (“SCS”) market and focus on innovation. However, intense competition is a concern.
Shares of Nevro have gained 78.3% compared with the industry’s growth of 9.7% over the past year.
Nevro, with a market capitalization of $3.96 billion, is a medical device company engaged in developing and commercializing a neuromodulation platform for the treatment of chronic pain, primarily in the leg. It anticipates earnings improvement of 26.1% over the next five years. Moreover, it has a trailing four-quarter positive earnings surprise of 20.7%, on average.
Let’s take a closer look at the factors that substantiate the company’s Zacks Rank #3 (Hold).
Solid International Prospects: Nevro continues to benefit from sturdy international foothold. Despite a decline in international revenues in the first quarter, the company expects to see continuous sequential improvement of the same in the second quarter, particularly in the month of May, and again in June as procedures are restored in the United States, parts of Europe, and Australia.
Lucrative SCS Market: Robust prospects in the SCS market have been favoring the company for quite some time now. Aging demographics, high costs related to therapy, strict regulatory approvals and excessive reliance on the traditional SCS therapy are the primary factors driving the market.
During first-quarter 2020, the company announced positive developments related to its intellectual property litigations. The company witnessed two developments that highlighted the strength of its intellectual property portfolio and commitment to safeguard its investment in a bid to support high frequency SCS therapy.
Senza — A Key Driver of Growth: Nevro’s flagship platform — Senza — continues to be a key growth driver. In recent times, Nevro launched its product platform, Senza Omnia, in the United States which is expected to provide it with a competitive edge.
The Senza Omnia gained traction through the first quarter of 2020. Omnia, which is the only SCS platform that can offer high frequency, plus lower frequencies and paired waveforms, received an earlier-than-expected approval in Australia during the first quarter. The company is currently awaiting a CE Mark approval for the platform in Europe.
What’s Deterring the Stock?
Competition is intense in the SCS market. Per management, the primary competitive factors include company brand recognition, clinical research leadership, pricing and reimbursement.
How Are Estimates Placed?
For 2020, the Zacks Consensus Estimate for revenues is pegged at $313.8 million, indicating a decline of 19.6% from the year-ago reported figure. The same for adjusted loss per share stands at $3.86.
Key Picks
A few better-ranked stocks from the broader medical space are Laboratory Corporation of America Holdings (LH - Free Report) , Surmodics (SRDX - Free Report) and Quest Diagnostics (DGX - Free Report) .
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently carries a Zacks Rank #2 (Buy).
Quest Diagnostics’ long-term earnings growth rate is estimated at 7.6%. It currently carries a Zacks Rank #1.
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.
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Here's Why You Should Hold on to Nevro (NVRO) Stock Now
Nevro Corp (NVRO - Free Report) is well-poised for growth on strong international presence, solid prospects in the Spinal Cord Stimulation (“SCS”) market and focus on innovation. However, intense competition is a concern.
Shares of Nevro have gained 78.3% compared with the industry’s growth of 9.7% over the past year.
Nevro, with a market capitalization of $3.96 billion, is a medical device company engaged in developing and commercializing a neuromodulation platform for the treatment of chronic pain, primarily in the leg. It anticipates earnings improvement of 26.1% over the next five years. Moreover, it has a trailing four-quarter positive earnings surprise of 20.7%, on average.
Let’s take a closer look at the factors that substantiate the company’s Zacks Rank #3 (Hold).
Solid International Prospects: Nevro continues to benefit from sturdy international foothold. Despite a decline in international revenues in the first quarter, the company expects to see continuous sequential improvement of the same in the second quarter, particularly in the month of May, and again in June as procedures are restored in the United States, parts of Europe, and Australia.
Lucrative SCS Market: Robust prospects in the SCS market have been favoring the company for quite some time now. Aging demographics, high costs related to therapy, strict regulatory approvals and excessive reliance on the traditional SCS therapy are the primary factors driving the market.
During first-quarter 2020, the company announced positive developments related to its intellectual property litigations. The company witnessed two developments that highlighted the strength of its intellectual property portfolio and commitment to safeguard its investment in a bid to support high frequency SCS therapy.
Senza — A Key Driver of Growth: Nevro’s flagship platform — Senza — continues to be a key growth driver. In recent times, Nevro launched its product platform, Senza Omnia, in the United States which is expected to provide it with a competitive edge.
The Senza Omnia gained traction through the first quarter of 2020. Omnia, which is the only SCS platform that can offer high frequency, plus lower frequencies and paired waveforms, received an earlier-than-expected approval in Australia during the first quarter. The company is currently awaiting a CE Mark approval for the platform in Europe.
What’s Deterring the Stock?
Competition is intense in the SCS market. Per management, the primary competitive factors include company brand recognition, clinical research leadership, pricing and reimbursement.
How Are Estimates Placed?
For 2020, the Zacks Consensus Estimate for revenues is pegged at $313.8 million, indicating a decline of 19.6% from the year-ago reported figure. The same for adjusted loss per share stands at $3.86.
Key Picks
A few better-ranked stocks from the broader medical space are Laboratory Corporation of America Holdings (LH - Free Report) , Surmodics (SRDX - Free Report) and Quest Diagnostics (DGX - Free Report) .
LabCorp’s long-term earnings growth rate is estimated at 6.1%. The company presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Surmodics’ long-term earnings growth rate is estimated at 10%. The company presently carries a Zacks Rank #2 (Buy).
Quest Diagnostics’ long-term earnings growth rate is estimated at 7.6%. It currently carries a Zacks Rank #1.
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>>