On Sep 14, we issued an updated research report on Cardiovascular Systems, Inc. (CSII - Free Report) . The company has been pursuing product improvements, as well as evaluating new technologies in a bid to strengthen and broaden its portfolio of powerful micro-invasive tools. However, cut-throat competition is a concern for the company. The stock currently carries a Zacks Rank #3 (Hold).
Over the past year, shares of Cardiovascular Systems have underperformed its industry. The stock has gained 13.6% compared with the industry’s 33.2% rise.
Cardiovascular Systems’ sales performance was dismal in the fiscal fourth quarter. According to the company, amid the pandemic, there was a significant decline in STEMI activations as patients avoided hospitals and stayed home even when they were having a heart attack. Gross margin contraction and operating loss are concerning. A tough competitive landscape and the company’s failure to expand business overseas are the other headwinds.
On a positive note, worldwide peripheral revenues exceeded the company’s projections. Favorable outcomes of the REACH PVI study and launch of a physician finder are encouraging. Cardiovascular Systems has long been expanding its product portfolio to enhance its market reach and versatility.
Currently, the company is pursuing product improvements and evaluating new technologies to strengthen and broaden its portfolio of powerful micro invasive tools. In this regard, the Sapphire angioplasty balloons and Teleport Microcatheter are two offerings from the company, which have historically seen strong customer adoption. Also, Nitinol Coronary ViperWire, which was launched in Japan in 2019, remains an important revenue contributor to the company’s coronary segment.
Strong solvency and favorable market dynamics are added benefits. The company’s issuance of a revenue outlook for fiscal 2021 and expectations of steady recovery in coronary procedures are positives.
Stocks Worth a Look
Some better-ranked stocks from the broader medical space are QIAGEN N.V. (QGEN - Free Report) , Thermo Fisher Scientific Inc. (TMO - Free Report) and Hologic, Inc. (HOLX - Free Report) .
QIAGEN’s long-term earnings growth rate is estimated at 22.3%. It currently sports a Zacks Rank #1. (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 15%. It currently carries a Zacks Rank #2 (Buy).
Hologic’s long-term earnings growth rate is estimated at 15.5%. The company presently sports a Zacks Rank #1.
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