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Reasons to Retain ShockWave Medical (SWAV) in Your Portfolio
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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 presently Zacks Rank #3 (Hold) company have gained 8.5% compared with the industry’s 1.4% growth so far this year. The S&P 500 Index has risen 7.5% in the same time frame.
With a market capitalization of $8.14 billion, this medical device company is committed to developing and commercializing products that can change the way calcified cardiovascular disease is treated.
ShockWave Medical’s earnings yield of 1.8% compares favorably with the industry’s (7%). Its earnings beat estimates in each of the trailing four quarters, the average surprise being 118.36%.
Image Source: Zacks Investment Research
What’s Driving the Company’s Performance?
ShockWave Medical invests in R&D efforts to accelerate its Intravascular Lithotripsy (IVL)Technology, thereby broadening and enhancing its existing product offerings. In the fourth quarter of 2022, the company incurred R&D expenses of $23.7 million, up 61.2% from the prior-year quarter’s tally.
For 2023, Shockwave Medical expects revenues in the $660-$680 million range, implying growth of 35-39% from the previous year’s level.
SWAV believes in its ability to rapidly develop innovative products, owing to a dynamic product innovation process. The versatility and leveraging ability of its core technology and management philosophy continue to improve its R&D process.
Shockwave Medical recruited and retained engineers and scientists with substantial expertise in developing medical devices. Its pipeline of products in various stages of development is anticipated to provide additional commercial opportunities.
Since its inception, ShockWave Medical has been committed to generating clinical data to show the safety and effectiveness of its IVL Technology. The initial studies consistently highlighted low rates of complications irrespective of the type of vessel being examined.
Apart from getting regulatory approvals or clearances, data from SWAV’s clinical studies strengthen its ability to drive the adoption of IVL Technology throughout multiple therapies in its existing and new market segments.
ShockWave Medical’s past studies guided optimal IVL procedure technique and enriched the design of its IVL System and products under development. Management is optimistic about the continued clinical acceptance and penetration of IVL, as demonstrated by its strong results in fourth-quarter 2022 and a higher outlook for 2023 revenues.
The company has ongoing clinical programs for several products and indications. On being successful, these will enable SWAV to expand the commercialization of its products into new geographies and indications.
Shockwave Medical received regulatory approval for the Shockwave C2 Coronary IVL Catheter in Japan in 2022. Besides, the company also announced the introduction and global availability of the Shockwave M5+ peripheral IVL catheter, post the receipt of the CE mark and the FDA clearance last year.
What’s the Downside?
Limited commercialization expertise and approved or cleared products pose a challenge to Shockwave Medical in evaluating its current business and determining future financial growth.
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $668.8 million, indicating an improvement of 36.6% from the previous year’s reported figure. The same for adjusted earnings per share (EPS) stands at $3.92.
The Zacks Consensus Estimate for Alcon’s EPS has risen from $2.51 to $2.56 for 2023 in the past 30 days. ALC stock has gained 2.7% so far this year. The company delivered an average earnings surprise of 12.37% in the last four quarters.
Earnings estimates for Avanos Medical have improved from $1.64 per share to $1.68 for 2023 in the past 30 days. AVNS stock has risen 13.3% so far this year. The company delivered an average earnings surprise of 11.01% in the last four quarters.
Earnings estimates for Embecta have increased from $1.90 per share to $2.33 for fiscal 2023 in the past 30 days. EMBC stock has gained 21% so far this year. The company delivered an average earnings surprise of 38.86% in the last four quarters
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Reasons to Retain ShockWave Medical (SWAV) in Your Portfolio
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 presently Zacks Rank #3 (Hold) company have gained 8.5% compared with the industry’s 1.4% growth so far this year. The S&P 500 Index has risen 7.5% in the same time frame.
With a market capitalization of $8.14 billion, this medical device company is committed to developing and commercializing products that can change the way calcified cardiovascular disease is treated.
ShockWave Medical’s earnings yield of 1.8% compares favorably with the industry’s (7%). Its earnings beat estimates in each of the trailing four quarters, the average surprise being 118.36%.
Image Source: Zacks Investment Research
What’s Driving the Company’s Performance?
ShockWave Medical invests in R&D efforts to accelerate its Intravascular Lithotripsy (IVL)Technology, thereby broadening and enhancing its existing product offerings. In the fourth quarter of 2022, the company incurred R&D expenses of $23.7 million, up 61.2% from the prior-year quarter’s tally.
For 2023, Shockwave Medical expects revenues in the $660-$680 million range, implying growth of 35-39% from the previous year’s level.
SWAV believes in its ability to rapidly develop innovative products, owing to a dynamic product innovation process. The versatility and leveraging ability of its core technology and management philosophy continue to improve its R&D process.
Shockwave Medical recruited and retained engineers and scientists with substantial expertise in developing medical devices. Its pipeline of products in various stages of development is anticipated to provide additional commercial opportunities.
Since its inception, ShockWave Medical has been committed to generating clinical data to show the safety and effectiveness of its IVL Technology. The initial studies consistently highlighted low rates of complications irrespective of the type of vessel being examined.
Apart from getting regulatory approvals or clearances, data from SWAV’s clinical studies strengthen its ability to drive the adoption of IVL Technology throughout multiple therapies in its existing and new market segments.
ShockWave Medical’s past studies guided optimal IVL procedure technique and enriched the design of its IVL System and products under development. Management is optimistic about the continued clinical acceptance and penetration of IVL, as demonstrated by its strong results in fourth-quarter 2022 and a higher outlook for 2023 revenues.
The company has ongoing clinical programs for several products and indications. On being successful, these will enable SWAV to expand the commercialization of its products into new geographies and indications.
Shockwave Medical received regulatory approval for the Shockwave C2 Coronary IVL Catheter in Japan in 2022. Besides, the company also announced the introduction and global availability of the Shockwave M5+ peripheral IVL catheter, post the receipt of the CE mark and the FDA clearance last year.
What’s the Downside?
Limited commercialization expertise and approved or cleared products pose a challenge to Shockwave Medical in evaluating its current business and determining future financial growth.
ShockWave Medical, Inc. Price
ShockWave Medical, Inc. price | ShockWave Medical, Inc. Quote
Estimate Trend
The Zacks Consensus Estimate for the company’s 2023 revenues is pegged at $668.8 million, indicating an improvement of 36.6% from the previous year’s reported figure. The same for adjusted earnings per share (EPS) stands at $3.92.
Stocks to Consider
Some better-ranked stocks from the broader medical space are Alcon (ALC - Free Report) , Avanos Medical (AVNS - Free Report) and Embecta Corp. (EMBC - Free Report) . Embecta sports a Zacks Rank #1 (Strong Buy), whereas both Alcon and Avanos carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Alcon’s EPS has risen from $2.51 to $2.56 for 2023 in the past 30 days. ALC stock has gained 2.7% so far this year. The company delivered an average earnings surprise of 12.37% in the last four quarters.
Earnings estimates for Avanos Medical have improved from $1.64 per share to $1.68 for 2023 in the past 30 days. AVNS stock has risen 13.3% so far this year. The company delivered an average earnings surprise of 11.01% in the last four quarters.
Earnings estimates for Embecta have increased from $1.90 per share to $2.33 for fiscal 2023 in the past 30 days. EMBC stock has gained 21% so far this year. The company delivered an average earnings surprise of 38.86% in the last four quarters