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Here's Why You Should Buy ShockWave Medical (SWAV) Stock
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ShockWave Medical, Inc. (SWAV - Free Report) is well-poised for growth, backed by its research and development (R&D) efforts and focus on clinical studies.
Shares of this Zacks Rank #1 (Strong Buy) stock have gained 66.6% against the industry’s decline of 26.6% so far this year. The S&P 500 Index has fallen 12% in the same time frame.
Image Source: Zacks Investment Research
With a market capitalization of $10.6 billion, this medical device company is committed to developing and commercializing products created to change the way calcified cardiovascular disease is treated. ShockWave Medical’s earnings yield of 0.86% compares favorably with the industry’s (8.56%). The company beat earnings estimates in each of the trailing four quarters, the average surprise being 180.14%.
What’s Driving Its Performance?
ShockWave Medical invests in research and development (R&D) efforts that accelerate its IVL Technology to broaden and enhance its existing product offerings. In the second quarter of 2022, the company incurred R&D expenses of $20.8 million, up 75.7% from the prior-year quarter.
For 2022, Shockwave Medical now expects revenues in the range of $465 million to $475 million (up from the previously guided band of $435-$455 million), reflecting growth of 96-100% from the prior-year period.
The company believes in its ability to rapidly develop innovative products owing to the dynamic product innovation process. The versatility and leveraging ability of its core technology and management philosophy are tailwinds that continue to improve the R&D process. The company has recruited and retained engineers and scientists with substantial expertise when it comes to the development of medical devices. The company’s pipeline of products in various stages of development is anticipated to provide additional commercial opportunities.
Since its inception, ShockWave Medical has remained committed to generating clinical data to show the safety and effectiveness of its IVL Technology. These initial studies have consistently highlighted low rates of complications irrespective of the type of vessel that was being studied. Apart from getting regulatory approvals or clearances, the data from the company’s clinical studies strengthen its ability to drive the adoption of Intravascular Lithotripsy (IVL) Technology throughout multiple therapies in existing and new market segments.
ShockWave Medical’s past studies have guided optimal IVL procedure technique and enriched the design of its IVL System and products in development. Management is optimistic about the continued clinical acceptance and penetration of IVL, as demonstrated by its strong results in the quarter under review as well as a higher outlook for revenues in 2022.
Apart from this, the company has ongoing clinical programs for several products and indications, and if successful, these will enable it to expand the commercialization of its products into new geographies and indications.
During the first quarter of 2022, the company received regulatory approval for the Shockwave C2 Coronary IVL Catheter in Japan. Apart from this, the company announced the global availability and introduction of the Shockwave M5+ peripheral IVL catheter post the receipt of the CE mark and the FDA clearance.
What’s the Downside?
Limited commercialization expertise and approved or cleared products pose a challenge for the company to evaluate its current business and determine future financial performance and growth.
Estimates Trend
For 2022, the Zacks Consensus Estimate for revenues is pegged at $479.8 million, indicating an improvement of 102.3% from the year-ago period’s reported figure. The same for adjusted earnings per share stands at $2.57, suggesting growth of almost 1100% from the prior-year reported figure.
Some other top-ranked stocks in the broader medical space are AMN Healthcare Services (AMN - Free Report) , McKesson (MCK - Free Report) , and Patterson Companies (PDCO - Free Report) .
AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 15.7%. The company currently sports a Zacks Rank #1. 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 3.2%. AMN’s earnings yield of 10.7% compares favorably with the industry’s (2.4%).
McKesson beat earnings estimates in each of the trailing four quarters, the average surprise being 13%. The company currently carries a Zacks Rank #2 (Buy).
McKesson’s long-term earnings growth rate is estimated at 9.9% MCK’s earnings yield is 6.5% against the industry’s (4.1%).
Patterson Companies surpassed earnings estimates in each of the trailing four quarters, the average surprise being 16.5%. The company currently carries a Zacks Rank #2.
Patterson Companies’ long-term earnings growth rate is estimated at 7.9%. The company’s earnings yield of 7.7% compares favorably with the industry’s 4.1%.
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Here's Why You Should Buy ShockWave Medical (SWAV) Stock
ShockWave Medical, Inc. (SWAV - Free Report) is well-poised for growth, backed by its research and development (R&D) efforts and focus on clinical studies.
Shares of this Zacks Rank #1 (Strong Buy) stock have gained 66.6% against the industry’s decline of 26.6% so far this year. The S&P 500 Index has fallen 12% in the same time frame.
Image Source: Zacks Investment Research
With a market capitalization of $10.6 billion, this medical device company is committed to developing and commercializing products created to change the way calcified cardiovascular disease is treated. ShockWave Medical’s earnings yield of 0.86% compares favorably with the industry’s (8.56%). The company beat earnings estimates in each of the trailing four quarters, the average surprise being 180.14%.
What’s Driving Its Performance?
ShockWave Medical invests in research and development (R&D) efforts that accelerate its IVL Technology to broaden and enhance its existing product offerings. In the second quarter of 2022, the company incurred R&D expenses of $20.8 million, up 75.7% from the prior-year quarter.
For 2022, Shockwave Medical now expects revenues in the range of $465 million to $475 million (up from the previously guided band of $435-$455 million), reflecting growth of 96-100% from the prior-year period.
The company believes in its ability to rapidly develop innovative products owing to the dynamic product innovation process. The versatility and leveraging ability of its core technology and management philosophy are tailwinds that continue to improve the R&D process. The company has recruited and retained engineers and scientists with substantial expertise when it comes to the development of medical devices. The company’s pipeline of products in various stages of development is anticipated to provide additional commercial opportunities.
Since its inception, ShockWave Medical has remained committed to generating clinical data to show the safety and effectiveness of its IVL Technology. These initial studies have consistently highlighted low rates of complications irrespective of the type of vessel that was being studied. Apart from getting regulatory approvals or clearances, the data from the company’s clinical studies strengthen its ability to drive the adoption of Intravascular Lithotripsy (IVL) Technology throughout multiple therapies in existing and new market segments.
ShockWave Medical’s past studies have guided optimal IVL procedure technique and enriched the design of its IVL System and products in development. Management is optimistic about the continued clinical acceptance and penetration of IVL, as demonstrated by its strong results in the quarter under review as well as a higher outlook for revenues in 2022.
Apart from this, the company has ongoing clinical programs for several products and indications, and if successful, these will enable it to expand the commercialization of its products into new geographies and indications.
During the first quarter of 2022, the company received regulatory approval for the Shockwave C2 Coronary IVL Catheter in Japan. Apart from this, the company announced the global availability and introduction of the Shockwave M5+ peripheral IVL catheter post the receipt of the CE mark and the FDA clearance.
What’s the Downside?
Limited commercialization expertise and approved or cleared products pose a challenge for the company to evaluate its current business and determine future financial performance and growth.
Estimates Trend
For 2022, the Zacks Consensus Estimate for revenues is pegged at $479.8 million, indicating an improvement of 102.3% from the year-ago period’s reported figure. The same for adjusted earnings per share stands at $2.57, suggesting growth of almost 1100% from the prior-year reported figure.
ShockWave Medical, Inc. Price
ShockWave Medical, Inc. price | ShockWave Medical, Inc. Quote
Other Key Picks
Some other top-ranked stocks in the broader medical space are AMN Healthcare Services (AMN - Free Report) , McKesson (MCK - Free Report) , and Patterson Companies (PDCO - Free Report) .
AMN Healthcare surpassed earnings estimates in each of the trailing four quarters, the average surprise being 15.7%. The company currently sports a Zacks Rank #1. 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 3.2%. AMN’s earnings yield of 10.7% compares favorably with the industry’s (2.4%).
McKesson beat earnings estimates in each of the trailing four quarters, the average surprise being 13%. The company currently carries a Zacks Rank #2 (Buy).
McKesson’s long-term earnings growth rate is estimated at 9.9% MCK’s earnings yield is 6.5% against the industry’s (4.1%).
Patterson Companies surpassed earnings estimates in each of the trailing four quarters, the average surprise being 16.5%. The company currently carries a Zacks Rank #2.
Patterson Companies’ long-term earnings growth rate is estimated at 7.9%. The company’s earnings yield of 7.7% compares favorably with the industry’s 4.1%.