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 2% against the industry’s decline of 27.6% on a year-to-date basis. The S&P 500 Index has fallen 16.7% in the same time frame.

Glaukos — with a market capitalization of $2.15 billion — is a leading ophthalmic medical technology and pharmaceutical company. It projects growth of 19.6% for 2023 and expects to sustain its strong performance. The company has a trailing four-quarter earnings surprise of 28.7%, 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.

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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In March 2022, the company announced the commencement of the Phase 2 clinical program for its third-generation iLink therapy designed to treat keratoconus. Glaukos, during its earnings call, confirmed that it is on track to advance its pipeline following the recent clearances of iAccess and iPRIME, while the FDA 510(K) review of iStent infinite is ongoing as GKOS remains focused on a potential mid-year clearance for this important product. These developments raise our optimism about the stock.

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 $1.56 per share, narrower than the year-ago quarter’s loss per share of $1.94. The same for 2023 revenues stands at $309.5 million, suggesting growth of 13.2% from the year-ago reported number.

Stocks to Consider

Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN Quick QuoteAMN - Free Report) , Masimo Corporation (MASI Quick QuoteMASI - Free Report) and Patterson Companies, Inc. (PDCO Quick QuotePDCO - Free Report) .

AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 15.6%. The company currently sports a Zacks Rank #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 1.1%. The company’s earnings yield of 11.4% compares favorably with the industry’s (0.8%).

Masimo beat earnings estimates in each of the trailing four quarters, the average surprise being 4.4%. The company currently carries a Zacks Rank #2 (Buy).

Masimo’s estimated earnings growth rate for second-quarter 2022 is pegged at 22.3%. The company’s earnings yield is 3.8% against the industry’s (8.5%).

Patterson Companies surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 2.7%. The company currently carries a Zacks Rank #2.

Patterson Companies’ long-term earnings growth rate is estimated at 9.9%. The company’s earnings yield of 7.1% compares favorably with the industry’s 4.2%.