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Here's Why You Should Hold on to CONMED (CNMD) Stock Now
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CONMED Corporation (CNMD - Free Report) is well-poised for growth, courtesy of a robust product portfolio and strength in the General Surgery business. However, data security threats remain a concern.
Shares of this currently Zacks Rank #3 (Hold) company have gained 11.5% compared with the industry’s growth of 5.6% over the past year. The S&P 500 Index has rallied 6.3% in the same time frame.
CONMED — with a market capitalization of $4.19 billion — is a major medical products manufacturer specializing in surgical instruments and devices for minimally invasive procedures and monitoring. It anticipates earnings to improve by 12.5% over the next five years. The company has a trailing four-quarter earnings surprise of 16.7%, on average.
Key Catalysts
CONMED offers a broad line of surgical products. CONMED’s product portfolio consists of several new devices in the Orthopedic, Laparoscopic, Robotic, Open Surgery, Gastroenterology, Pulmonary and Cardiology sections. Innovative products like Hi-Fi Tape and Hi-Fi suture interface represent a critical component of repair security in rotator cuff repair space.
Other notable offerings include the MicroFree platform in Orthopedics, the TruShot, the Y-Knot Pro and the CRYSTALVIEW Pump. Of the unique products under General Surgery, the Anchor Tissue Retrieval bag deserves mention. This is one of the major platforms in CONMED’s specimen bag portfolio. With increased product offerings, the company can accelerate its top-line growth.
Image Source: Zacks Investment Research
General surgery comprises a complete line of endo-mechanical instrumentation for minimally invasive laparoscopic and gastrointestinal procedures, a line of cardiac monitoring products, as well as electrosurgical generators and related instruments. CONMED’s unique products and solutions within the General Surgery segment have been providing it a competitive edge in the MedTech space.
In the fourth quarter of 2021, the General Surgery segment’s revenues improved 12.2% at a constant exchange rate (CER). Domestically, General Surgery sales rose 6.8% year over year on a reported basis, while international sales climbed 25.3% at CER. According to the company’s investor presentation, global General Surgery products are anticipated to grow at above-market rates on a long-term basis on the back of additional sales representatives and improving customer engagement.
Primary Concern
CONMED relies extensively on information technology (IT) systems for the storage, processing and transmission of its electronic, business-related information assets used in or necessary to conduct business. The data that the company stores and processes may include customer payment information and other types of sensitive business-related information. Numerous evolving cybersecurity threats pose potential risks to the security of the company’s IT systems, networks and services, as well as the confidentiality, availability and integrity of its data.
Estimates Trend
For 2022, the consensus mark for adjusted earnings per share stands at $1.09, suggesting an improvement of 8.2% from the previous year. The Zacks Consensus Estimate for 2022 revenues is pegged at $3.70 billion, indicating growth of 15.3% from the year-ago reported figure.
Stocks to Consider
Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , DexCom, Inc. (DXCM - Free Report) and Abiomed, Inc. .
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 8.9% compares favorably with the industry’s (0.3%).
DexCom beat earnings estimates in three of the trailing four quarters and missed once, the average surprise being 26.5%. The company currently carries a Zacks Rank #2 (Buy).
DexCom’s long-term earnings growth rate is estimated at 17.6%. DXCM’s earnings yield of 0.7% compares favorably with the industry’s (6.7%).
Abiomed surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.2%. The company currently carries a Zacks Rank #2.
Abiomed’s long-term earnings growth rate is estimated at 20%. ABMD’s earnings yield of 1.5% compares favorably against the industry’s (6.4%).
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Here's Why You Should Hold on to CONMED (CNMD) Stock Now
CONMED Corporation (CNMD - Free Report) is well-poised for growth, courtesy of a robust product portfolio and strength in the General Surgery business. However, data security threats remain a concern.
Shares of this currently Zacks Rank #3 (Hold) company have gained 11.5% compared with the industry’s growth of 5.6% over the past year. The S&P 500 Index has rallied 6.3% in the same time frame.
CONMED — with a market capitalization of $4.19 billion — is a major medical products manufacturer specializing in surgical instruments and devices for minimally invasive procedures and monitoring. It anticipates earnings to improve by 12.5% over the next five years. The company has a trailing four-quarter earnings surprise of 16.7%, on average.
Key Catalysts
CONMED offers a broad line of surgical products. CONMED’s product portfolio consists of several new devices in the Orthopedic, Laparoscopic, Robotic, Open Surgery, Gastroenterology, Pulmonary and Cardiology sections. Innovative products like Hi-Fi Tape and Hi-Fi suture interface represent a critical component of repair security in rotator cuff repair space.
Other notable offerings include the MicroFree platform in Orthopedics, the TruShot, the Y-Knot Pro and the CRYSTALVIEW Pump. Of the unique products under General Surgery, the Anchor Tissue Retrieval bag deserves mention. This is one of the major platforms in CONMED’s specimen bag portfolio. With increased product offerings, the company can accelerate its top-line growth.
Image Source: Zacks Investment Research
General surgery comprises a complete line of endo-mechanical instrumentation for minimally invasive laparoscopic and gastrointestinal procedures, a line of cardiac monitoring products, as well as electrosurgical generators and related instruments. CONMED’s unique products and solutions within the General Surgery segment have been providing it a competitive edge in the MedTech space.
In the fourth quarter of 2021, the General Surgery segment’s revenues improved 12.2% at a constant exchange rate (CER). Domestically, General Surgery sales rose 6.8% year over year on a reported basis, while international sales climbed 25.3% at CER. According to the company’s investor presentation, global General Surgery products are anticipated to grow at above-market rates on a long-term basis on the back of additional sales representatives and improving customer engagement.
Primary Concern
CONMED relies extensively on information technology (IT) systems for the storage, processing and transmission of its electronic, business-related information assets used in or necessary to conduct business. The data that the company stores and processes may include customer payment information and other types of sensitive business-related information. Numerous evolving cybersecurity threats pose potential risks to the security of the company’s IT systems, networks and services, as well as the confidentiality, availability and integrity of its data.
Estimates Trend
For 2022, the consensus mark for adjusted earnings per share stands at $1.09, suggesting an improvement of 8.2% from the previous year. The Zacks Consensus Estimate for 2022 revenues is pegged at $3.70 billion, indicating growth of 15.3% from the year-ago reported figure.
Stocks to Consider
Some better-ranked stocks from the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , DexCom, Inc. (DXCM - Free Report) and Abiomed, Inc. .
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 8.9% compares favorably with the industry’s (0.3%).
DexCom beat earnings estimates in three of the trailing four quarters and missed once, the average surprise being 26.5%. The company currently carries a Zacks Rank #2 (Buy).
DexCom’s long-term earnings growth rate is estimated at 17.6%. DXCM’s earnings yield of 0.7% compares favorably with the industry’s (6.7%).
Abiomed surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.2%. The company currently carries a Zacks Rank #2.
Abiomed’s long-term earnings growth rate is estimated at 20%. ABMD’s earnings yield of 1.5% compares favorably against the industry’s (6.4%).