Glaukos Corporation (GKOS Quick QuoteGKOS - Free Report) is well-poised for growth, backed by favorable clinical trial results and a robust product pipeline. However, stiff competition remains a concern.

Shares of this Zacks Rank #3 (Hold) have gained 29.9% against the industry’s decline of 12.9% on a year-to-date basis. The S&P 500 Index has fallen 3.8% in the same time frame.

Glaukos — with a market capitalization of $2.72 billion — is a leading ophthalmic medical technology and pharmaceutical company. It projects growth of 20.4% for 2023 and expects to sustain its strong performance. The company has a trailing four-quarter earnings surprise of 29.5%, on average.

Key Catalysts

Clinical trials are the primary means to evaluate the efficacy and safety of new medical technologies.

In January 2022, Glaukos announced that its iDose TR sustained-release travoprost implant continued to deliver sustained substantial reductions in intraocular pressure (IOP) in a 36-month analysis of the 36-month Phase 2b clinical trial conducted under a U.S. Investigational New Drug (IND) protocol.

Apart from this, in the same month, the company announced that it has enrolled the first patient into a Phase 2 clinical trial of GLK-302 for the treatment of presbyopia and the first patient into a Phase 2 clinical trial of GLK-301 for the treatment of signs and symptoms of Dry Eye Disease (DED).

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Per the fourth-quarter 2021 earnings call, the company advanced its near-term pipeline by bringing several promising investigational therapies near to becoming commercial realities with favorable data announcements for iDose TR, iStent infinite and Epi-On. Apart from this, the company made progress with its earlier-stage pipeline programs with the newly established licensing agreements with Attillaps, encouraging R&D progress on preclinical programs such as iDose TREX and iDose Rock.

Factor Hurting the Stock

Glaukos’ competitors include medical companies, academic and research institutions and 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.

Estimates Trend

For 2023, the consensus mark for the bottom line is pegged at a loss of $1.64 per share, narrower than the year-ago quarter’s loss per share of $2.06. The same for 2023 revenues stands at $306.2 million, suggesting growth of 13.3% from the year-ago reported number.

Stocks to Consider

Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN Quick QuoteAMN - Free Report) , Henry Schein, Inc. (HSIC Quick QuoteHSIC - Free Report) and McKesson Corporation (MCK Quick QuoteMCK - Free Report) .

AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20%. The company currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcare’s long-term earnings growth rate is estimated at 16.2%. AMN’s earnings yield of 8.8% compares favorably with the industry’s 0.3%.

Henry Schein beat earnings estimates in each of the trailing four quarters, the average surprise being 25.5%. The company currently carries a Zacks Rank #2 (Buy).

Henry Schein’s long-term earnings growth rate is estimated at 11.8%. HSIC’s earnings yield of 5.6% compares favorably with the industry’s 4.1%.

McKesson surpassed earnings estimates in each of the trailing four quarters, the average surprise being 20.6%. The company currently carries a Zacks Rank #2.

McKesson’s long-term earnings growth rate is estimated at 11.8%. MCK’s earnings yield of 8.8% compares favorably with the industry’s 4.1%.