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Why You Should Add Merit Medical (MMSI) to Your Portfolio
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Merit Medical Systems, Inc. (MMSI - Free Report) is gaining traction from portfolio expansion and solid prospects in its Peripheral Intervention unit. A plethora of regulatory approvals also drove the stock.
The company, with a market capitalization of $3.04 billion, is a leading developer of peripheral and cardiac intervention products. Its earnings are expected to improve 12.6% over the next five years. Also, this currently Zacks Rank #1 (Strong Buy) company has a trailing four-quarter earnings surprise of 278.2%, on average. It has a VGM score of B.
In the past three months, the stock has gained 11.6% compared with 8.5% growth of its industry.
Let’s delve deeper into the factors working in favor of the company.
Product Portfolio Expansion: Merit Medical has continued to gain a significant momentum on the back of its new products for a while now. The product pipeline including radio and electrophysiology products further raises optimism for the near future.
In April 2020, the company initiated production of a sample collection and transport kit consisting of a nasopharyngeal swab and transport vial, which is used to collect samples from suspected COVID-infected patients.In March, the company announced the addition of the SCOUT Access Guide to its wire-free radar localization portfolio. This slim Guide option is developed to enable oncoplastic breast surgery and carry out lymph node dissection with greater ease.
This product portfolio expansion bodes well for the company in the long haul.
Developments on Regulatory Front: Positive feedbacks and approvals from the top-notch regulatory bodies aided Merit Medical in recent times. Recently, the company confirmed that it has more than 50 active R&D products in its portfolio.
In April, the FDA granted the company two additional Breakthrough Device designations for the Merit WRAPSODY Endovascular Stent Graft System. The system is a flexible, self-expanding endoprosthesis. This regulatory clearance is expected to bolster the company’s cardiovascular segment.The CE mark of the product also came through in May.
In the third quarter of 2020, the company secured the Investigational Device Exemption (IDE) approval for the WRAPSODY AV Access Efficacy Study, also known as the WAVE study, and the IDE nod for a smaller study called the WRAPSODY Central Feasibility Study, also known as the Wave Central Study.
Peripheral Intervention Unit Holds Promise: The company’s peripheral intervention unit comprises Peripheral Drainage & Biopsy, Peripheral Angiography, Peripheral Intervention and Peripheral Access Portfolio. Merit Medical also offers low-profile ASAP Aspiration Catheters, which provide clinicians with two options for the safe and efficient removal of fresh, soft emboli and thrombi from vessels. The Cardiovascular unit reported third-quarter revenue growth of 0.8% year over year on 3% increase in Peripheral Intervention revenues. This is likely to boost the company’s R&D prospects in the quarters to come.
Which Way Are Estimates Trending?
The Zacks Consensus Estimate for the company’s 2020 revenues is pegged at $956.3 million, suggesting a 3.9% fall from the year-ago reported number.
For 2020, the Zacks Consensus Estimate for the company’s earnings ispegged at $1.56, indicating a 6.9% rise from the year-earlier reported figure.
Align Technology has a projected long-term earnings growth rate of 18.3%.
Cardinal Health has a projected long-term earnings growth rate of 5.5%.
Thermo Fisher has an estimated long-term earnings growth rate of 18%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Why You Should Add Merit Medical (MMSI) to Your Portfolio
Merit Medical Systems, Inc. (MMSI - Free Report) is gaining traction from portfolio expansion and solid prospects in its Peripheral Intervention unit. A plethora of regulatory approvals also drove the stock.
The company, with a market capitalization of $3.04 billion, is a leading developer of peripheral and cardiac intervention products. Its earnings are expected to improve 12.6% over the next five years. Also, this currently Zacks Rank #1 (Strong Buy) company has a trailing four-quarter earnings surprise of 278.2%, on average. It has a VGM score of B.
In the past three months, the stock has gained 11.6% compared with 8.5% growth of its industry.
Let’s delve deeper into the factors working in favor of the company.
Product Portfolio Expansion: Merit Medical has continued to gain a significant momentum on the back of its new products for a while now. The product pipeline including radio and electrophysiology products further raises optimism for the near future.
In April 2020, the company initiated production of a sample collection and transport kit consisting of a nasopharyngeal swab and transport vial, which is used to collect samples from suspected COVID-infected patients.In March, the company announced the addition of the SCOUT Access Guide to its wire-free radar localization portfolio. This slim Guide option is developed to enable oncoplastic breast surgery and carry out lymph node dissection with greater ease.
This product portfolio expansion bodes well for the company in the long haul.
Developments on Regulatory Front: Positive feedbacks and approvals from the top-notch regulatory bodies aided Merit Medical in recent times. Recently, the company confirmed that it has more than 50 active R&D products in its portfolio.
In April, the FDA granted the company two additional Breakthrough Device designations for the Merit WRAPSODY Endovascular Stent Graft System. The system is a flexible, self-expanding endoprosthesis. This regulatory clearance is expected to bolster the company’s cardiovascular segment.The CE mark of the product also came through in May.
In the third quarter of 2020, the company secured the Investigational Device Exemption (IDE) approval for the WRAPSODY AV Access Efficacy Study, also known as the WAVE study, and the IDE nod for a smaller study called the WRAPSODY Central Feasibility Study, also known as the Wave Central Study.
Peripheral Intervention Unit Holds Promise: The company’s peripheral intervention unit comprises Peripheral Drainage & Biopsy, Peripheral Angiography, Peripheral Intervention and Peripheral Access Portfolio. Merit Medical also offers low-profile ASAP Aspiration Catheters, which provide clinicians with two options for the safe and efficient removal of fresh, soft emboli and thrombi from vessels. The Cardiovascular unit reported third-quarter revenue growth of 0.8% year over year on 3% increase in Peripheral Intervention revenues. This is likely to boost the company’s R&D prospects in the quarters to come.
Which Way Are Estimates Trending?
The Zacks Consensus Estimate for the company’s 2020 revenues is pegged at $956.3 million, suggesting a 3.9% fall from the year-ago reported number.
For 2020, the Zacks Consensus Estimate for the company’s earnings ispegged at $1.56, indicating a 6.9% rise from the year-earlier reported figure.
Other Key Picks
Some other top-ranked stocks from the broader medical space are Align Technology (ALGN - Free Report) , Cardinal Health (CAH - Free Report) and Thermo Fisher Scientific (TMO - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has a projected long-term earnings growth rate of 18.3%.
Cardinal Health has a projected long-term earnings growth rate of 5.5%.
Thermo Fisher has an estimated long-term earnings growth rate of 18%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>