We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Hold on to Surmodics (SRDX) Stock Now
Read MoreHide Full Article
Surmodics, Inc. (SRDX - Free Report) has been gaining on the back of its solid prospects in the thrombectomy business over the past few months. A robust third-quarter fiscal 2022 performance and consistent efforts to boost research and development (R&D) are expected to contribute further. Yet, concerns related to regulatory headwinds and data security threats persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 46.4% compared with 50.6% decline of the industry and 17.1% fall of the S&P 500 composite.
The renowned medical device and in-vitro diagnostics (IVD) technology provider has a market capitalization of $408.9 million. Surmodics projects 135.2% growth for fiscal 2023, expecting to maintain its strong performance. SRDX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 41.9%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Consistent Efforts to Boost R&D: Surmodics’ solid efforts to improve its R&D stature have been a key growth driver, which raises our optimism. The company’s whole product solutions pipeline and sirolimus-based below-the-knee drug-coated balloon (DCB) program deserve a mention. Surmodics has been making progress using its internally developed .014 balloon platform.
During the third quarter of fiscal 2022 earnings call in July, Surmodics confirmed that it is currently assessing the next steps for the clinical development and future commercialization of the Sundance DCB, for which a multinational strategic partner has expressed interest.
Thrombectomy Prospects Bright: Surmodics’ aim to leverage its proprietary Pounce thrombectomy platform technology to develop products raises our optimism. Surmodics’ Product Sales of its medical devices in the fiscal 2022 third quarter grew 64% year over year, including contract manufactured balloon catheters, specialty catheters partnered with Cook and Medtronic, and its Pounce Arterial Thrombectomy and Sublime Radial device products. Surmodics’ Medical Device business product revenue grew 23% on broad-based growth across Medical Device products and coating reagents with growing contribution from the Pounce Arterial and Sublime Radial commercialization efforts.
Strong Q3 Results: Surmodics’ better-than-expected earnings in third-quarter fiscal 2022 buoy optimism about the stock. Its quarterly revenues were also in line with management expectations. The company registered robust Product sales growth on the back of continued demand for its medical devices and IVD products. Surmodics confirmed making crucial progress on its SurVeil DCB pre-market approval submission. The gross margin expansion bodes well.
Downsides
Regulatory Headwinds: Surmodics’ products and business activities are subject to complex regulations worldwide. However, failing to comply with these legal and regulatory requirements could impact the company’s business. Surmodics anticipates that governmental authorities will continue to scrutinize the industry it operates closely and those additional regulations may increase compliance and legal costs.
Data Security Threats: Surmodics collects and stores sensitive data, including its proprietary business information, on its networks. The secure maintenance of this information is critical to its operations and business strategy. Despite Surmodics’ security measures, its information technology and infrastructure may be vulnerable to attacks by hackers resulting from employee error, malfeasance or other disruptions.
Estimate Trend
Surmodics is witnessing a positive estimate revision trend for fiscal 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has narrowed from a loss of $1.15 to $1.08 per share.
The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2022 revenues is pegged at $24.9 million, suggesting a 4.2% improvement from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.7%.
AMN Healthcare has lost 7.5% compared with the industry’s 39.5% fall in the past year.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has gained 21.8% against the industry’s 35.1% decline over the past year.
McKesson, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 13%.
McKesson has gained 69.3% against the industry’s 17.9% decline over the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Here's Why You Should Hold on to Surmodics (SRDX) Stock Now
Surmodics, Inc. (SRDX - Free Report) has been gaining on the back of its solid prospects in the thrombectomy business over the past few months. A robust third-quarter fiscal 2022 performance and consistent efforts to boost research and development (R&D) are expected to contribute further. Yet, concerns related to regulatory headwinds and data security threats persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 46.4% compared with 50.6% decline of the industry and 17.1% fall of the S&P 500 composite.
The renowned medical device and in-vitro diagnostics (IVD) technology provider has a market capitalization of $408.9 million. Surmodics projects 135.2% growth for fiscal 2023, expecting to maintain its strong performance. SRDX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 41.9%.
Image Source: Zacks Investment Research
Let’s delve deeper.
Consistent Efforts to Boost R&D: Surmodics’ solid efforts to improve its R&D stature have been a key growth driver, which raises our optimism. The company’s whole product solutions pipeline and sirolimus-based below-the-knee drug-coated balloon (DCB) program deserve a mention. Surmodics has been making progress using its internally developed .014 balloon platform.
During the third quarter of fiscal 2022 earnings call in July, Surmodics confirmed that it is currently assessing the next steps for the clinical development and future commercialization of the Sundance DCB, for which a multinational strategic partner has expressed interest.
Thrombectomy Prospects Bright: Surmodics’ aim to leverage its proprietary Pounce thrombectomy platform technology to develop products raises our optimism. Surmodics’ Product Sales of its medical devices in the fiscal 2022 third quarter grew 64% year over year, including contract manufactured balloon catheters, specialty catheters partnered with Cook and Medtronic, and its Pounce Arterial Thrombectomy and Sublime Radial device products. Surmodics’ Medical Device business product revenue grew 23% on broad-based growth across Medical Device products and coating reagents with growing contribution from the Pounce Arterial and Sublime Radial commercialization efforts.
Strong Q3 Results: Surmodics’ better-than-expected earnings in third-quarter fiscal 2022 buoy optimism about the stock. Its quarterly revenues were also in line with management expectations. The company registered robust Product sales growth on the back of continued demand for its medical devices and IVD products. Surmodics confirmed making crucial progress on its SurVeil DCB pre-market approval submission. The gross margin expansion bodes well.
Downsides
Regulatory Headwinds: Surmodics’ products and business activities are subject to complex regulations worldwide. However, failing to comply with these legal and regulatory requirements could impact the company’s business. Surmodics anticipates that governmental authorities will continue to scrutinize the industry it operates closely and those additional regulations may increase compliance and legal costs.
Data Security Threats: Surmodics collects and stores sensitive data, including its proprietary business information, on its networks. The secure maintenance of this information is critical to its operations and business strategy. Despite Surmodics’ security measures, its information technology and infrastructure may be vulnerable to attacks by hackers resulting from employee error, malfeasance or other disruptions.
Estimate Trend
Surmodics is witnessing a positive estimate revision trend for fiscal 2022. In the past 90 days, the Zacks Consensus Estimate for its earnings has narrowed from a loss of $1.15 to $1.08 per share.
The Zacks Consensus Estimate for the company’s fourth-quarter fiscal 2022 revenues is pegged at $24.9 million, suggesting a 4.2% improvement from the year-ago reported number.
Key Picks
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare, flaunting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.7%.
You can see the complete list of today’s Zacks #1 Rank stocks here.
AMN Healthcare has lost 7.5% compared with the industry’s 39.5% fall in the past year.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.1% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has gained 21.8% against the industry’s 35.1% decline over the past year.
McKesson, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 13%.
McKesson has gained 69.3% against the industry’s 17.9% decline over the past year.