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Here's Why You Should Hold on to Glaukos (GKOS) Stock Now

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Glaukos Corporation (GKOS - Free Report) is well-poised for growth backed by strength in iStent technology and robust product portfolio. However, stiff competition remains a concern.

The stock gained 8% compared with the industry’s growth of 3.3% in the past month. The S&P 500 Index has declined 1% in the same time frame.

Glaukos — with a market capitalization of $2.51 billion — is a leading ophthalmic medical technology and pharmaceutical company. It projects growth of 23.5% for 2021 and expects to maintain its strong performance. It anticipates earnings to improve 7.5% over the next five years. The company has a trailing four-quarter earnings surprise 64.6%, on average.

Let’s take a closer look at the factors that substantiate the company’s Zacks Rank #3 (Hold).

Factor Hurting the Stock

Glaukos’ competitors include medical companies, academic and research institutions or others that develop new drugs, therapies medical devices or surgical procedures to treat glaucoma. Consequently, intense competition continues to weigh on the company’s overall performance.

Key Catalysts

Glaukos’ flagship iStent is the first FDA-approved surgical device available for insertion in conjunction with cataract surgery. This is done for the reduction of intraocular pressure in adult patients with mild-to-moderate open-angle glaucoma.

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Management at Glaukos continues to remain optimistic about the prospects in the iStent platform worldwide, including the emerging economies. The company advanced the U.S. commercial rollout of the iStent inject W, which offers the same safety and efficacy of iStent inject but with added benefits, during the first quarter of 2021. During the same time, Glaukos advanced the commercial rollout of iStent inject W in key international markets like Australia, Japan and several European countries.

In the second-quarter 2021 earnings call, Glaukos stated that it is focused on preparing for an iStent infinite regulatory submission and continues to target FDA approval around the end of 2021.

The product has received standalone indication approval in Australia and regulatory approval in India. It has also been registering continued progress across several of the key market access initiatives.

The company expects a robust pipeline of new product launches to substantially expand its market opportunities. With the targeted launches of iStent infinite in late 2021, and promising longer-term programs of iStent SA, iDose TREX, iDose Rock and the IOP Sensor program, Glaukos believes that it is positioned well to drive sustainable long-term growth in its glaucoma franchise in the near future.

Estimates Trend

Glaukos has been witnessing a positive estimate revision trend for 2021. In the past 60 days, the Zacks Consensus Estimate for its loss per share has narrowed from a loss of 87 cents to a loss of 85 cents.

The Zacks Consensus Estimate for the company’s third-quarter 2021 revenues is pegged at $72.6 million, suggesting growth of 12% from the year-ago reported number.

Stocks to Consider

Some better-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) , Envista Holdings Corporation (NVST - Free Report) and Merit Medical Systems, Inc. (MMSI - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Henry Schein’s long-term earnings growth rate is estimated at 13.9%.

Envista Holdings’ long-term earnings growth rate is estimated at 27.4%.

Merit Medical’s long-term earnings growth rate is projected at 13.6%.