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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 gained 37.3% compared with the industry’s 3.4% growth so far this year. The S&P 500 Index also rose 9.4% in the same time frame.
Glaukos, with a market capitalization of $2.88 billion, is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 21.2% for 2024 and expects to maintain its strong performance through the year.
The company has a trailing negative four-quarter earnings surprise of 16.23%, 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 of 2022. In the first quarter, the company had launched the iAccess device for go anatomy procedures.
The addition of these new devices will provide unique treatment options for surgeons, customers and patients. The iAccess device has gained positive market feedback.
In August 2022, 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 treatments failed.
The company has already launched the product. During the first quarter, iStent infinite helped GKOS’ U.S. glaucoma franchise to return to growth.
In September 2022, the company 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, seeking approval for iDose TR from the FDA by the end of 2023. A potential approval for the candidate will substantially boost Glaukos’ revenues.
The company is also developing three other candidates — GLK-301, GLK-302 and third-generation iLink therapy — as potential treatments for Dry Eye Disease, presbyopia and keratoconus, respectively, in separate phase II studies.
These positive developments raise our optimism about the stock.
Glaukos’ better-than-expected first-quarter revenues and earnings are also encouraging.
What’s Hurting the Stock?
Glaukos’ competitors include medical companies, academic and research institutions, as well as 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.
The bottom-line estimate for GKOS is pegged at a loss of $2.34 per share for 2023, which is 7.3% wider than the previous year’s reported loss of $2.18. The Zacks Consensus Estimate for 2023 revenues stands at $296.7 million, indicating growth of 4.9% from the year-ago figure.
Merit Medical Systems has an estimated long-term growth rate of 11%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.22%.
MMSI’s shares havegained 18.9% so far this year.
West Pharmaceutical Services has an estimated long-term growth rate of 6.3%. Its earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 13.61%.
WST’s shares have gained 47.7% so far this year.
CONMED has an estimated long-term growth rate of 19.4%. CNMD’s earnings surpassed estimates in two of the trailing four quarters, missed once and met the same in another, the average negative surprise being 10.54%.
CONMED has gained 33.8% so far this year.
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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 gained 37.3% compared with the industry’s 3.4% growth so far this year. The S&P 500 Index also rose 9.4% in the same time frame.
Glaukos, with a market capitalization of $2.88 billion, is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 21.2% for 2024 and expects to maintain its strong performance through the year.
The company has a trailing negative four-quarter earnings surprise of 16.23%, 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 of 2022. In the first quarter, the company had launched the iAccess device for go anatomy procedures.
The addition of these new devices will provide unique treatment options for surgeons, customers and patients. The iAccess device has gained positive market feedback.
In August 2022, 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 treatments failed.
The company has already launched the product. During the first quarter, iStent infinite helped GKOS’ U.S. glaucoma franchise to return to growth.
In September 2022, the company 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, seeking approval for iDose TR from the FDA by the end of 2023. A potential approval for the candidate will substantially boost Glaukos’ revenues.
The company is also developing three other candidates — GLK-301, GLK-302 and third-generation iLink therapy — as potential treatments for Dry Eye Disease, presbyopia and keratoconus, respectively, in separate phase II studies.
These positive developments raise our optimism about the stock.
Glaukos’ better-than-expected first-quarter revenues and earnings are also encouraging.
What’s Hurting the Stock?
Glaukos’ competitors include medical companies, academic and research institutions, as well as 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.
Glaukos Corporation Price
Glaukos Corporation price | Glaukos Corporation Quote
Estimates Trend
The bottom-line estimate for GKOS is pegged at a loss of $2.34 per share for 2023, which is 7.3% wider than the previous year’s reported loss of $2.18. The Zacks Consensus Estimate for 2023 revenues stands at $296.7 million, indicating growth of 4.9% from the year-ago figure.
Stocks to Consider
Some better-ranked stocks from the same industry are Merit Medical Systems (MMSI - Free Report) , West Pharmaceutical Services (WST - Free Report) and CONMED (CNMD - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Merit Medical Systems has an estimated long-term growth rate of 11%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 20.22%.
MMSI’s shares havegained 18.9% so far this year.
West Pharmaceutical Services has an estimated long-term growth rate of 6.3%. Its earnings surpassed estimates in three of the trailing four quarters and missed the same once, the average surprise being 13.61%.
WST’s shares have gained 47.7% so far this year.
CONMED has an estimated long-term growth rate of 19.4%. CNMD’s earnings surpassed estimates in two of the trailing four quarters, missed once and met the same in another, the average negative surprise being 10.54%.
CONMED has gained 33.8% so far this year.