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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 currently Zacks Rank #3 (Hold) company have risen 85.3% in the past year compared with the industry’s 3.7% growth. The S&P 500 Index has also increased 22.4% in the same time frame.
Glaukos, with a market capitalization of $4.7 billion, is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 8.8% for 2024 and expects to maintain its strong performance in terms of revenues.
Image Source: Zacks Investment Research
The company has an average four-quarter earnings surprise of 5.72%.
Key Catalysts
Glaukos’ sales returned to growth in 2023 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 is expected to have a positive impact on the iStent business in 2024.
GKOS has launched several products like iPrime, iAccess and iStent in the past few quarters. These are aiding the company’s revenue growth. In December, Glaukos received the 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 the top line 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 fourth quarter.
Estimate Trend
The bottom-line estimate for GKOS is pegged at a loss of $2.01 per share for 2024, 8.8% narrower than the previous year’s reported loss. The Zacks Consensus Estimate for 2024 revenues is pinned at $355.2 million, indicating growth of 13.3% from that recorded in the previous year.
Some better-ranked stocks in the broader medical space are Edward Lifesciences (EW - Free Report) , Asensus Surgical (ASXC - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
Edward Lifesciences, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 7.2%. EW’s earnings surpassed estimates in two of the trailing four quarters and met the same twice, delivering an average surprise of 0.80%. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Edward Lifesciences' shares have risen 12.6% in the past year compared with the industry’s 3.7% growth.
Asensus Surgical, carrying a Zacks Rank of 2 at present, has an estimated growth rate of 40.6% for 2024. ASXC’s earnings surpassed estimates in one of the trailing four quarters, missed the same in two quarters and met once, delivering an average negative surprise of 6.70%.
Asensus Surgical’s shares have lost 64% in the past year against the industry’s 3.7% growth.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have risen 44.8% in the past year compared with the industry’s 3.7% growth.
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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 currently Zacks Rank #3 (Hold) company have risen 85.3% in the past year compared with the industry’s 3.7% growth. The S&P 500 Index has also increased 22.4% in the same time frame.
Glaukos, with a market capitalization of $4.7 billion, is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 8.8% for 2024 and expects to maintain its strong performance in terms of revenues.
Image Source: Zacks Investment Research
The company has an average four-quarter earnings surprise of 5.72%.
Key Catalysts
Glaukos’ sales returned to growth in 2023 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 is expected to have a positive impact on the iStent business in 2024.
GKOS has launched several products like iPrime, iAccess and iStent in the past few quarters. These are aiding the company’s revenue growth. In December, Glaukos received the 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 the top line 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 fourth quarter.
Estimate Trend
The bottom-line estimate for GKOS is pegged at a loss of $2.01 per share for 2024, 8.8% narrower than the previous year’s reported loss. The Zacks Consensus Estimate for 2024 revenues is pinned at $355.2 million, indicating growth of 13.3% 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 are Edward Lifesciences (EW - Free Report) , Asensus Surgical (ASXC - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
Edward Lifesciences, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 7.2%. EW’s earnings surpassed estimates in two of the trailing four quarters and met the same twice, delivering an average surprise of 0.80%. You can seethe complete list of today’s Zacks #1 Rank stocks here.
Edward Lifesciences' shares have risen 12.6% in the past year compared with the industry’s 3.7% growth.
Asensus Surgical, carrying a Zacks Rank of 2 at present, has an estimated growth rate of 40.6% for 2024. ASXC’s earnings surpassed estimates in one of the trailing four quarters, missed the same in two quarters and met once, delivering an average negative surprise of 6.70%.
Asensus Surgical’s shares have lost 64% in the past year against the industry’s 3.7% growth.
Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 15%. ITGR’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 11.9%.
Integer Holdings’ shares have risen 44.8% in the past year compared with the industry’s 3.7% growth.