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.
3 Medical Stocks With Solid Growth Potential to Keep Track Of
Read MoreHide Full Article
The broader S&P 500 Index as well as the majority of industry indices have shown a recovering trend so far this year. The year 2022 had roiled investors as the three key broad indices — S&P 500, Dow Jones and Nasdaq — ended the year with significant negative returns. Although the risk of an impending recession is looming over the market, sustained demand for healthcare products and services are likely to safeguard medical companies amid potential volatility going ahead.
Moreover, investors must note that bear markets do not continue forever. Hence, a bull market will eventually start, although the timeline is not clear yet. Thus, companies with strong fundamentals and whose share prices have gained amid broader market decline are likely to create robust wealth for investors when the bull market sets in.
Here we discuss three medical stocks — Axsome Therapeutics (AXSM - Free Report) , Moderna (MRNA - Free Report) and Intuitive Surgical (ISRG - Free Report) — that have rallied in 2022 amid a broader market decline or that are ripe for a rebound after declining for the better part of 2022, courtesy of a recovering trend in broader markets. While AXSM’s share price has continued to gain since the beginning of 2022, MRNA and ISRG have seen a reversal since October, when the stocks started witnessing an uptrend.
Image Source: Zacks Investment Research
Axsome Therapeutics
Shares of this Zacks Rank #3 (Hold) company have gained 35.1% in the past six months, significantly outperforming the broader markets. The rally in the company’s share price has been driven by two promising drugs in its portfolio — Sunosi and Auvelity. While Axsome bought the sleep disorder drug, Sunosi, from Jazz Pharmaceuticals earlier in 2022, it launched the antidepressant drug, Auvelity, in October.
Apart from these two commercial drugs, Axsome is planning to submit a regulatory application to the FDA seeking approval for its migraine treatment candidate — AXS-07 — in the third quarter of 2023. Moreover, the company is evaluating AXS-05 for Alzheimer's disease agitation in a late-stage study, which can also likely lead to a new commercial drug in a couple of years.
There are several other candidates in Axsome’s pipeline in early- to mid-stage studies that will likely drive the company’s prospects in the upcoming years.
The Zacks Consensus Estimate for revenues for 2023 suggests growth of 287.6%. Although estimates for earnings per share (EPS) in 2023 suggest a decline of 4.3%, the bottom line is likely to improve 72.4% in 2024.
This Zacks Rank #3 company created a whopping amount of wealth for its investors in 2020, following its success with the mRNA-based COVID-19 vaccine — Spikevax. However, with the risk of coronavirus waning, there has been a significant decline in Moderna’s share price in 2022. However, a new growth phase is likely to set in with annual vaccination for COVID-19 being planned. Moreover, the company will start to offer its COVID-19 vaccine directly to distributors instead of governments, which may lead to higher price realization. This may create a potential opportunity worth billions of dollars every year in annual COVID-19 vaccine sales.
Moreover, Moderna is developing multiple other vaccines for respiratory syncytial virus, cytomegalovirus, flu as well as vaccine for certain cancers. Moderna expects the flu and RSV vaccine candidates to hit the market within three years. The company is also developing a combined vaccine for flu and COVID-19.
Shares of Moderna have gained 15.3% in the past six months. Shares have been rallying since the middle of October after declining for the major part of 2022. Moderna’s long-term prospects seem encouraging.
Loss estimates for 2023 and 2024 have narrowed 3.3% and 9.1%, respectively, in the past 30 days.
The company’s services were disrupted by the COVID-19 pandemic, resulting in lower top-line growth. Continued supply-chain challenges, labor shortages and inflationary pressures have adversely impacted margins.
However, Intuitive Surgical’s prospects seem bright now with continued recovery in procedural volumes. The continuation of recovery in demand for its robotic surgery machines will further fuel growth of the company.
Moreover, Intuitive Surgical’s leadership position — nearly 80% of the market — in surgical robots is likely to benefit as hospitals are likely to stick to the company for these high-ticket purchases.
These favorable opportunities are likely to deliver top- and bottom-line growth for Intuitive Surgical going forward. The Zacks Consensus Estimate for revenues and EPS for 2023 suggests growth of 10.6% and 12.6%, respectively. The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Intuitive Surgical have gained 40.1% in the past six months. The shares have been rallying since mid of October after declining in the earlier part of 2022.
Image: Bigstock
3 Medical Stocks With Solid Growth Potential to Keep Track Of
The broader S&P 500 Index as well as the majority of industry indices have shown a recovering trend so far this year. The year 2022 had roiled investors as the three key broad indices — S&P 500, Dow Jones and Nasdaq — ended the year with significant negative returns. Although the risk of an impending recession is looming over the market, sustained demand for healthcare products and services are likely to safeguard medical companies amid potential volatility going ahead.
Moreover, investors must note that bear markets do not continue forever. Hence, a bull market will eventually start, although the timeline is not clear yet. Thus, companies with strong fundamentals and whose share prices have gained amid broader market decline are likely to create robust wealth for investors when the bull market sets in.
Here we discuss three medical stocks — Axsome Therapeutics (AXSM - Free Report) , Moderna (MRNA - Free Report) and Intuitive Surgical (ISRG - Free Report) — that have rallied in 2022 amid a broader market decline or that are ripe for a rebound after declining for the better part of 2022, courtesy of a recovering trend in broader markets. While AXSM’s share price has continued to gain since the beginning of 2022, MRNA and ISRG have seen a reversal since October, when the stocks started witnessing an uptrend.
Image Source: Zacks Investment Research
Axsome Therapeutics
Shares of this Zacks Rank #3 (Hold) company have gained 35.1% in the past six months, significantly outperforming the broader markets. The rally in the company’s share price has been driven by two promising drugs in its portfolio — Sunosi and Auvelity. While Axsome bought the sleep disorder drug, Sunosi, from Jazz Pharmaceuticals earlier in 2022, it launched the antidepressant drug, Auvelity, in October.
Apart from these two commercial drugs, Axsome is planning to submit a regulatory application to the FDA seeking approval for its migraine treatment candidate — AXS-07 — in the third quarter of 2023. Moreover, the company is evaluating AXS-05 for Alzheimer's disease agitation in a late-stage study, which can also likely lead to a new commercial drug in a couple of years.
There are several other candidates in Axsome’s pipeline in early- to mid-stage studies that will likely drive the company’s prospects in the upcoming years.
The Zacks Consensus Estimate for revenues for 2023 suggests growth of 287.6%. Although estimates for earnings per share (EPS) in 2023 suggest a decline of 4.3%, the bottom line is likely to improve 72.4% in 2024.
Axsome Therapeutics, Inc. Price
Axsome Therapeutics, Inc. price | Axsome Therapeutics, Inc. Quote
Moderna
This Zacks Rank #3 company created a whopping amount of wealth for its investors in 2020, following its success with the mRNA-based COVID-19 vaccine — Spikevax. However, with the risk of coronavirus waning, there has been a significant decline in Moderna’s share price in 2022. However, a new growth phase is likely to set in with annual vaccination for COVID-19 being planned. Moreover, the company will start to offer its COVID-19 vaccine directly to distributors instead of governments, which may lead to higher price realization. This may create a potential opportunity worth billions of dollars every year in annual COVID-19 vaccine sales.
Moreover, Moderna is developing multiple other vaccines for respiratory syncytial virus, cytomegalovirus, flu as well as vaccine for certain cancers. Moderna expects the flu and RSV vaccine candidates to hit the market within three years. The company is also developing a combined vaccine for flu and COVID-19.
Shares of Moderna have gained 15.3% in the past six months. Shares have been rallying since the middle of October after declining for the major part of 2022. Moderna’s long-term prospects seem encouraging.
Loss estimates for 2023 and 2024 have narrowed 3.3% and 9.1%, respectively, in the past 30 days.
Moderna, Inc. Price
Moderna, Inc. price | Moderna, Inc. Quote
Intuitive Surgical
The company’s services were disrupted by the COVID-19 pandemic, resulting in lower top-line growth. Continued supply-chain challenges, labor shortages and inflationary pressures have adversely impacted margins.
However, Intuitive Surgical’s prospects seem bright now with continued recovery in procedural volumes. The continuation of recovery in demand for its robotic surgery machines will further fuel growth of the company.
Moreover, Intuitive Surgical’s leadership position — nearly 80% of the market — in surgical robots is likely to benefit as hospitals are likely to stick to the company for these high-ticket purchases.
These favorable opportunities are likely to deliver top- and bottom-line growth for Intuitive Surgical going forward. The Zacks Consensus Estimate for revenues and EPS for 2023 suggests growth of 10.6% and 12.6%, respectively. The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Intuitive Surgical have gained 40.1% in the past six months. The shares have been rallying since mid of October after declining in the earlier part of 2022.
Intuitive Surgical, Inc. Price
Intuitive Surgical, Inc. price | Intuitive Surgical, Inc. Quote