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Here's Why You Should Retain Glaukos (GKOS) Stock for Now
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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) company have risen 79.8% in the past year compared with the industry’s 0.3% growth. The S&P 500 Index has also increased 20.4% in the same time frame.
Glaukos, with a market capitalization of $4.32 billion, is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 8.7% for 2024 and expects to maintain its strong performance in terms of revenues.
The company has an average four-quarter earnings surprise of 5.72%.
Image Source: Zacks Investment Research
Key Catalysts
Glaukos’ sales returned to growth following a declining trend in 2022, reflecting an improving macro environment coupled with the launch of several new products in the past few quarters. Continued strong demand across international Glaucoma and Corneal Health franchises will be the key top-line driver in 2024.
Moreover, the commercial launch of iStent infinite in 2023 is boosting the U.S. glaucoma franchise, which will drive growth in the upcoming few quarters. The company’s raised outlook for revenues on its third-quarter earnings call looks promising.
Meanwhile, the new local coverage determinations proposed in June 2023 are likely to remove certain ophthalmic goniotomy and canaloplasty procedures from coverage. This will likely have a positive impact on the iStent business.
GKOS has launched several products like iPrime, iAccess and iStent in the past few quarters. These are aiding its revenue growth. Last month, the company received FDA approval for another product, iDose TR, for the reduction of intraocular pressure in patients with ocular hypertension or open-angle glaucoma. These products are likely to support the growth momentum in 2024 as well.
Earlier this month, Glaukos announced preliminary revenue results for fourth-quarter 2023. The company estimates net sales to be in excess of $81 million, implying year-over-year growth of at least 13.7%. Revenues for the entire year are estimated to cross $313 million. GKOS expects revenues to grow 13-16.5% in 2024.
What’s Hurting GKOS?
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.
Moreover, the U.S. Centers for Medicare & Medicaid Services significantly reduced physician payment rates in 2022, which led to lower U.S. Glaucoma sales volume in the year. With no significant change in payment rates in 2023, the impact continued through the year and must have continued to adversely impact sales in the last quarter.
Estimate Trend
The bottom-line estimate for GKOS is pegged at a loss of $2.01 per share for 2024, 8.7% narrower than the previous year’s reported loss. The Zacks Consensus Estimate for 2024 revenues is pinned at $354.1 million, indicating growth of 13% from that recorded in the previous year.
Some better-ranked stocks in the broader medical space areDaVita Inc. (DVA - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.6%. You can seethe complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 38% compared with the industry’s 9% growth in the past year.
Merit Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.5%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.4%.
Merit Medical’s shares have risen 12.3% compared with the industry’s 9.5% growth in the past year.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have risen 40.4% compared with the industry’s 0.3% growth in the past year.
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Here's Why You Should Retain Glaukos (GKOS) Stock for Now
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) company have risen 79.8% in the past year compared with the industry’s 0.3% growth. The S&P 500 Index has also increased 20.4% in the same time frame.
Glaukos, with a market capitalization of $4.32 billion, is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 8.7% for 2024 and expects to maintain its strong performance in terms of revenues.
The company has an average four-quarter earnings surprise of 5.72%.
Image Source: Zacks Investment Research
Key Catalysts
Glaukos’ sales returned to growth following a declining trend in 2022, reflecting an improving macro environment coupled with the launch of several new products in the past few quarters. Continued strong demand across international Glaucoma and Corneal Health franchises will be the key top-line driver in 2024.
Moreover, the commercial launch of iStent infinite in 2023 is boosting the U.S. glaucoma franchise, which will drive growth in the upcoming few quarters. The company’s raised outlook for revenues on its third-quarter earnings call looks promising.
Meanwhile, the new local coverage determinations proposed in June 2023 are likely to remove certain ophthalmic goniotomy and canaloplasty procedures from coverage. This will likely have a positive impact on the iStent business.
GKOS has launched several products like iPrime, iAccess and iStent in the past few quarters. These are aiding its revenue growth. Last month, the company received FDA approval for another product, iDose TR, for the reduction of intraocular pressure in patients with ocular hypertension or open-angle glaucoma. These products are likely to support the growth momentum in 2024 as well.
Earlier this month, Glaukos announced preliminary revenue results for fourth-quarter 2023. The company estimates net sales to be in excess of $81 million, implying year-over-year growth of at least 13.7%. Revenues for the entire year are estimated to cross $313 million. GKOS expects revenues to grow 13-16.5% in 2024.
What’s Hurting GKOS?
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.
Moreover, the U.S. Centers for Medicare & Medicaid Services significantly reduced physician payment rates in 2022, which led to lower U.S. Glaucoma sales volume in the year. With no significant change in payment rates in 2023, the impact continued through the year and must have continued to adversely impact sales in the last quarter.
Estimate Trend
The bottom-line estimate for GKOS is pegged at a loss of $2.01 per share for 2024, 8.7% narrower than the previous year’s reported loss. The Zacks Consensus Estimate for 2024 revenues is pinned at $354.1 million, indicating growth of 13% from that recorded in the previous year.
Glaukos Corporation Price
Glaukos Corporation price | Glaukos Corporation Quote
Stocks to Consider
Some better-ranked stocks in the broader medical space areDaVita Inc. (DVA - Free Report) , Merit Medical Systems, Inc. (MMSI - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 17.3%. DVA’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 36.6%. You can seethe complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have risen 38% compared with the industry’s 9% growth in the past year.
Merit Medical, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 11.5%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.4%.
Merit Medical’s shares have risen 12.3% compared with the industry’s 9.5% growth in the past year.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have risen 40.4% compared with the industry’s 0.3% growth in the past year.