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Here's Why You Should Retain Glaukos (GKOS) in Your Portfolio
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Glaukos Corporation (GKOS - Free Report) is well-poised for growth, backed by favorable clinical trial results and a robust product pipeline. However, stiff competition is a concern.
Shares of this Zacks Rank #3 (Hold) have declined 4.7% against the industry’s growth of 4% in the past six months. The S&P 500 Index has fallen 1% in the same time frame.
Glaukos — with a market capitalization of $2.12 billion — is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 11.3% for 2023 and expects to sustain its strong performance. The company has a trailing negative four-quarter earnings surprise of 7.6%, on average.
Image Source: Zacks Investment Research
Key Catalysts
Clinical trials are the primary means to evaluate the efficacy and safety of new medical technologies.
Glaukos launched iPrime — a new disco elastic delivery device — in the latter part of the second quarter. In the latter part of the first quarter, the company had launched the iAccess device for go anatomy procedures. The addition of these new devices will provide unique solutions, designed to grow and improve treatment options for surgeons, customers and patients. The company’s iAccess device has received positive market feedback.
In August, Glaukos received clearance from the FDA for the commercialization of iStent infinite — an implantable device intended to reduce the intraocular pressure (IOP) of the eye in adult patients with primary open-angle glaucoma in whom previous medical and surgical treatment failed.
In September, Glaukos announced that its targeted injectable implant candidate — iDose TR — for glaucoma patients achieved excellent tolerability and a favorable safety profile, per top-line data from two pivotal studies. The candidate achieved non-inferior reductions in IOP in three months from baseline compared to the timolol ophthalmic solution. Based on these data, the company is planning to file a new drug application (NDA), seeking approval for iDose TR from the FDA by the end of 2023. A potential approval for the candidate will substantially boost revenues for Glaukos.
The company is also developing three other candidates — GLK-301, GLK-302 and third-generation iLink therapy — in separate phase II studies as a potential treatment for dry eye disease, presbyopia and keratoconus, respectively.
These positive developments raise our optimism about the stock.
Glaukos’s better-than-expected revenues and earnings in the third quarter were also encouraging.
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. Thus, 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 $1.98 per share, estimated to be 11.3% narrower than the anticipated loss of $2.23 per share in 2022. The same for 2023 revenues stands at $305.6 million, suggesting a growth of 9.5% from the anticipated 2022 number.
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Mesa Laboratories (MLAB - Free Report) and Merit Medical Systems (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.96%.
AMN Healthcare has gained 52.7% compared with the industry’s 2.3% increase in the past six months.
Mesa Laboratories, sporting a Zacks Rank #1 at present, has an estimated growth rate of 28.9% for fiscal 2023. MLAB’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average beat being 16.56%.
Mesa Laboratories has declined 15.9% against the industry’s 2.2% increase in the past six months.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.35%.
Merit Medical has gained 32% compared with the industry’s 5.5% increase over the past six months.
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Here's Why You Should Retain Glaukos (GKOS) in Your Portfolio
Glaukos Corporation (GKOS - Free Report) is well-poised for growth, backed by favorable clinical trial results and a robust product pipeline. However, stiff competition is a concern.
Shares of this Zacks Rank #3 (Hold) have declined 4.7% against the industry’s growth of 4% in the past six months. The S&P 500 Index has fallen 1% in the same time frame.
Glaukos — with a market capitalization of $2.12 billion — is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 11.3% for 2023 and expects to sustain its strong performance. The company has a trailing negative four-quarter earnings surprise of 7.6%, on average.
Image Source: Zacks Investment Research
Key Catalysts
Clinical trials are the primary means to evaluate the efficacy and safety of new medical technologies.
Glaukos launched iPrime — a new disco elastic delivery device — in the latter part of the second quarter. In the latter part of the first quarter, the company had launched the iAccess device for go anatomy procedures. The addition of these new devices will provide unique solutions, designed to grow and improve treatment options for surgeons, customers and patients. The company’s iAccess device has received positive market feedback.
In August, Glaukos received clearance from the FDA for the commercialization of iStent infinite — an implantable device intended to reduce the intraocular pressure (IOP) of the eye in adult patients with primary open-angle glaucoma in whom previous medical and surgical treatment failed.
In September, Glaukos announced that its targeted injectable implant candidate — iDose TR — for glaucoma patients achieved excellent tolerability and a favorable safety profile, per top-line data from two pivotal studies. The candidate achieved non-inferior reductions in IOP in three months from baseline compared to the timolol ophthalmic solution. Based on these data, the company is planning to file a new drug application (NDA), seeking approval for iDose TR from the FDA by the end of 2023. A potential approval for the candidate will substantially boost revenues for Glaukos.
The company is also developing three other candidates — GLK-301, GLK-302 and third-generation iLink therapy — in separate phase II studies as a potential treatment for dry eye disease, presbyopia and keratoconus, respectively.
These positive developments raise our optimism about the stock.
Glaukos’s better-than-expected revenues and earnings in the third quarter were also encouraging.
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. Thus, 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 $1.98 per share, estimated to be 11.3% narrower than the anticipated loss of $2.23 per share in 2022. The same for 2023 revenues stands at $305.6 million, suggesting a growth of 9.5% from the anticipated 2022 number.
Glaukos Corporation Price
Glaukos Corporation price | Glaukos Corporation Quote
Stocks to Consider
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , Mesa Laboratories (MLAB - Free Report) and Merit Medical Systems (MMSI - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.96%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has gained 52.7% compared with the industry’s 2.3% increase in the past six months.
Mesa Laboratories, sporting a Zacks Rank #1 at present, has an estimated growth rate of 28.9% for fiscal 2023. MLAB’s earnings surpassed estimates in two of the trailing four quarters and missed the same twice, the average beat being 16.56%.
Mesa Laboratories has declined 15.9% against the industry’s 2.2% increase in the past six months.
Merit Medical, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11%. MMSI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 25.35%.
Merit Medical has gained 32% compared with the industry’s 5.5% increase over the past six months.