We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Retain Merit Medical (MMSI) Stock For Now
Read MoreHide Full Article
Merit Medical Systems, Inc. (MMSI - Free Report) is well poised for growth in the coming quarters, backed by its strong product portfolio. A solid third-quarter 2021 performance, along with its progress in the WAVE study, is expected to contribute further. However, headwinds due to stiff competition, and lack of direct sales and marketing capabilities persist.
Over the past year, this Zacks Rank #3 (Hold) stock has gained 1.3% compared with 4.1% growth of the industry and 18.7% rise of the S&P 500 composite.
The renowned medical devices provider has a market capitalization of $3.15 billion. The company projects 11% growth for the next five years and expects to maintain its strong performance. It has delivered an earnings surprise of 31.30% for the past four quarters, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Progress in WAVE Study: Merit Medical has been making impressive progress with respect to its WAVE study of the WRAPSODY Endovascular Stent Graft, raising our optimism. During the third-quarter 2021 earnings call in October, the company confirmed that it has more than 40 clinical sites identified for the study, 28 of which are actively enrolling patients.
In September 2021, Merit Medical, with respect to expanding condition awareness of the clinical efficacy of WRAPSODY, reported positive results from a prospective observational first-in-human study that assessed the safety and effectiveness of the Merit WRAPSODY Endoprosthesis.
Strong Product Portfolio: We are upbeat about Merit Medical’s continued gains on the back of significant momentum of new products. We are also optimistic about the company’s product pipeline, including radio and electrophysiology products.
The company has several electrophysiology products on track for release and several others in stages of development. The company has also developed several products for testing patients suspected of COVID-19. Merit Medical, in August 2021, announced the commercial launch of the One-Vac Evacuated Drainage Bottle (One-Vac).
Strong Q3 Results: Merit Medical’s robust third-quarter 2021 results buoy optimism. The company saw revenue growth in its Cardiovascular segment as well as across the majority of its product categories within its Cardiovascular unit. Strong execution and improving customer demand trends resulting from the gradual business recovery pushed up the overall top line, which is encouraging. The company stands to benefit from executing its global growth and profitability plan. Expansion of gross margin also bodes well.
Downsides
Stiff Competition in MedTech Space: Merit Medical operates in highly competitive markets. It faces competition from many companies that are larger, and possess a greater market presence and resources than Merit Medical. The company competes globally in several market areas, including radiology, diagnostics and interventional cardiology. Such resources and market presence may enable the competitors to market competing products more efficiently or at reduced prices in order to gain market share.
Lack of Direct Sales and Marketing Capabilities: Merit Medical lacks direct sales and marketing capabilities in many countries. The company wholly depends on third-party distributors for the commercialization of products in countries like China, Japan, Russia and India. Per management, because of inefficiencies in the distributor base, Merit Medical often fails to successfully commercialize its products in these countries.
Estimate Trend
Merit Medical is witnessing a positive estimate revision trend for 2021. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 0.5% north to $2.16.
The Zacks Consensus Estimate for the company’s fourth-quarter 2021 revenues is pegged at $269.9 million, suggesting a 4.6% rise from the year-ago quarter’s reported number.
Key Picks
A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Cerner Corporation and Henry Schein, Inc. (HSIC - Free Report) .
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.51%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 37.4% against the industry’s 58.4% fall over the past year.
Cerner, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 12.8%. CERN’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 3.21%.
Cerner has gained 14.4% against the industry’s 53.9% fall over the past year.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%. It currently carries a Zacks Rank #2.
Henry Schein has gained 12% compared with the industry’s 4.1% rise over the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's Why You Should Retain Merit Medical (MMSI) Stock For Now
Merit Medical Systems, Inc. (MMSI - Free Report) is well poised for growth in the coming quarters, backed by its strong product portfolio. A solid third-quarter 2021 performance, along with its progress in the WAVE study, is expected to contribute further. However, headwinds due to stiff competition, and lack of direct sales and marketing capabilities persist.
Over the past year, this Zacks Rank #3 (Hold) stock has gained 1.3% compared with 4.1% growth of the industry and 18.7% rise of the S&P 500 composite.
The renowned medical devices provider has a market capitalization of $3.15 billion. The company projects 11% growth for the next five years and expects to maintain its strong performance. It has delivered an earnings surprise of 31.30% for the past four quarters, on average.
Let’s delve deeper.
Progress in WAVE Study: Merit Medical has been making impressive progress with respect to its WAVE study of the WRAPSODY Endovascular Stent Graft, raising our optimism. During the third-quarter 2021 earnings call in October, the company confirmed that it has more than 40 clinical sites identified for the study, 28 of which are actively enrolling patients.
In September 2021, Merit Medical, with respect to expanding condition awareness of the clinical efficacy of WRAPSODY, reported positive results from a prospective observational first-in-human study that assessed the safety and effectiveness of the Merit WRAPSODY Endoprosthesis.
Strong Product Portfolio: We are upbeat about Merit Medical’s continued gains on the back of significant momentum of new products. We are also optimistic about the company’s product pipeline, including radio and electrophysiology products.
The company has several electrophysiology products on track for release and several others in stages of development. The company has also developed several products for testing patients suspected of COVID-19. Merit Medical, in August 2021, announced the commercial launch of the One-Vac Evacuated Drainage Bottle (One-Vac).
Strong Q3 Results: Merit Medical’s robust third-quarter 2021 results buoy optimism. The company saw revenue growth in its Cardiovascular segment as well as across the majority of its product categories within its Cardiovascular unit. Strong execution and improving customer demand trends resulting from the gradual business recovery pushed up the overall top line, which is encouraging. The company stands to benefit from executing its global growth and profitability plan. Expansion of gross margin also bodes well.
Downsides
Stiff Competition in MedTech Space: Merit Medical operates in highly competitive markets. It faces competition from many companies that are larger, and possess a greater market presence and resources than Merit Medical. The company competes globally in several market areas, including radiology, diagnostics and interventional cardiology. Such resources and market presence may enable the competitors to market competing products more efficiently or at reduced prices in order to gain market share.
Lack of Direct Sales and Marketing Capabilities: Merit Medical lacks direct sales and marketing capabilities in many countries. The company wholly depends on third-party distributors for the commercialization of products in countries like China, Japan, Russia and India. Per management, because of inefficiencies in the distributor base, Merit Medical often fails to successfully commercialize its products in these countries.
Estimate Trend
Merit Medical is witnessing a positive estimate revision trend for 2021. In the past 90 days, the Zacks Consensus Estimate for its earnings has moved 0.5% north to $2.16.
The Zacks Consensus Estimate for the company’s fourth-quarter 2021 revenues is pegged at $269.9 million, suggesting a 4.6% rise from the year-ago quarter’s reported number.
Key Picks
A few stocks from the broader medical space that investors can consider are AMN Healthcare Services, Inc. (AMN - Free Report) , Cerner Corporation and Henry Schein, Inc. (HSIC - Free Report) .
AMN Healthcare has an estimated long-term growth rate of 16.2%. AMN’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.51%. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has gained 37.4% against the industry’s 58.4% fall over the past year.
Cerner, carrying a Zacks Rank #2 (Buy), has an estimated long-term growth rate of 12.8%. CERN’s earnings surpassed estimates in three of the trailing four quarters, the average surprise being 3.21%.
Cerner has gained 14.4% against the industry’s 53.9% fall over the past year.
Henry Schein has an estimated long-term growth rate of 11.8%. HSIC’s earnings surpassed estimates in the trailing four quarters, the average surprise being 21.86%. It currently carries a Zacks Rank #2.
Henry Schein has gained 12% compared with the industry’s 4.1% rise over the past year.