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Here's Why You Should Bet on 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 55.8% against the industry’s decline of 34.3% so far this year. The S&P 500 Index has fallen 21.2% in the same time frame.
With a market capitalization of $10.19 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 0.9% compares favorably with the industry’s (11.29%). The company beat earnings estimates in each of the trailing four quarters, the average surprise being 180.14%.
Image Source: Zacks Investment Research
What’s Driving Its Performance?
ShockWave Medical invests in R&D efforts that accelerate its IVL Technology, thus broadening and enhancing 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 expects revenues in the range of $465 million to $475 million (up from the previously guided band of $435-$455 million), implying 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.
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 $479.9 million, indicating an improvement of 102.4% from the year-ago period’s reported figure. The same for adjusted earnings per share stands at $2.57, suggesting growth of almost 1088% from the prior-year reported figure.
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 Semler Scientific . While AMN Healthcare Services sports a Zacks Rank #1 (Strong Buy), McKesson and Semler Scientific carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for AMN Healthcare Services have improved from earnings of $10.41 to $11.26 for 2022 and $7.94 to $8.30 for 2023 in the past 60 days. AMN stock has declined 12.6% so far this year.
AMN Healthcare Services delivered an earnings surprise of 15.66%, on average, in the last four quarters.
McKesson’s earnings per share estimates increased from $23.26 to $24.25 for fiscal 2023 and $25.41 to $26.04 for fiscal 2024 in the past 60 days. MCK has gained 37.4% so far this year.
McKesson delivered an earnings surprise of 13.00%, on average, in the last four quarters.
Estimates for Semler Scientific’s earnings per share increased from $1.37 to $1.58 for 2022 and $2.39 to $2.42 for 2023 in the past 60 days. SMLR has declined 58.5% so far this year.
Semler Scientific has an earnings yield of 4% against a negative yield for the industry.
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Here's Why You Should Bet on 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 55.8% against the industry’s decline of 34.3% so far this year. The S&P 500 Index has fallen 21.2% in the same time frame.
With a market capitalization of $10.19 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 0.9% compares favorably with the industry’s (11.29%). The company beat earnings estimates in each of the trailing four quarters, the average surprise being 180.14%.
Image Source: Zacks Investment Research
What’s Driving Its Performance?
ShockWave Medical invests in R&D efforts that accelerate its IVL Technology, thus broadening and enhancing 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 expects revenues in the range of $465 million to $475 million (up from the previously guided band of $435-$455 million), implying 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.
ShockWave Medical, Inc. Price
ShockWave Medical, Inc. price | ShockWave Medical, Inc. Quote
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 $479.9 million, indicating an improvement of 102.4% from the year-ago period’s reported figure. The same for adjusted earnings per share stands at $2.57, suggesting growth of almost 1088% from the prior-year reported figure.
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 Semler Scientific . While AMN Healthcare Services sports a Zacks Rank #1 (Strong Buy), McKesson and Semler Scientific carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for AMN Healthcare Services have improved from earnings of $10.41 to $11.26 for 2022 and $7.94 to $8.30 for 2023 in the past 60 days. AMN stock has declined 12.6% so far this year.
AMN Healthcare Services delivered an earnings surprise of 15.66%, on average, in the last four quarters.
McKesson’s earnings per share estimates increased from $23.26 to $24.25 for fiscal 2023 and $25.41 to $26.04 for fiscal 2024 in the past 60 days. MCK has gained 37.4% so far this year.
McKesson delivered an earnings surprise of 13.00%, on average, in the last four quarters.
Estimates for Semler Scientific’s earnings per share increased from $1.37 to $1.58 for 2022 and $2.39 to $2.42 for 2023 in the past 60 days. SMLR has declined 58.5% so far this year.
Semler Scientific has an earnings yield of 4% against a negative yield for the industry.