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Why You Should Retain Inari Medical (NARI) Stock for Now
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Inari Medical, Inc. (NARI - Free Report) is well-poised for growth, backed by a huge market opportunity for its products and its commitment to understanding the venous system. However, its dependency on the adoption of products is concerning.
Shares of this currently Zacks Rank #3 (Hold) company have lost 32.4% in the past year against the industry’s 8.5% growth. The S&P 500 Index has risen 27.2% in the same time frame.
NARI, with a market capitalization of $2.44 billion, is a commercial-stage medical device company. It seeks to develop products for treating and changing the lives of patients suffering from venous diseases.
The company’s negative earnings yield of 0.9% compares favorably with the industry’s (-4.9%). It delivered a trailing four-quarter average earnings surprise of 203.73%.
Image Source: Zacks Investment Research
What’s Driving NARI’s Performance?
Inari Medical is spearheading the creation and commercialization of devices that are purposefully built, keeping in mind the specific characteristics of the venous system, its diseases and unique clot morphology. The company’s in-depth knowledge of its target market and commitment to understanding the venous system allowed it to figure out the unmet needs of patients as well as physicians. This, in turn, has enabled NARI to quickly innovate and improve its products while updating its clinical and educational programs.
In November 2023, NARI acquired and launched LimFlow, a pioneer in limb salvage for patients with chronic limb-threatening ischemia (CLTI). The minimally-invasive LimFlow System is designed to bypass blocked arteries in the leg and deliver oxygenated blood back into the foot via the veins in no-option CLTI patients who are facing major amputation and have exhausted all other therapeutic options. LimFlow recently received FDA’s approval for its Transcatheter Arterialization of Deep Veins system. The acquisition adds a highly differentiated growth platform to Inari Medical’s portfolio that is likely to provide multiple opportunities for expansion, including so in CLTI patient population.
In June 2023, Inari Medical launched two new purpose-built products — the RevCore thrombectomy catheter and the Triever16 Curve catheter.
RevCore is currently the first mechanical thrombectomy device designed to address venous in-stent thrombosis. Triever16 Curve is the latest addition to NARI’s FlowTriever platform.
The latest launches are expected to significantly solidify the company’s foothold in the Venous Stent Thrombosis and Venous Thromboembolism (VTE) treatment space globally.
Strong procedural growth across both its product lines, ClotTriever and FlowTriever, drove the company’s top line in 2023, a trend that is likely to be reflected in 2024.
Moreover, NARI has expanded its product portfolio. It continues to progress well with the launch of Protrieve and InThrill. Continued adoption of FlowSaver — a device designed to be used with the FlowTriever System to reduce blood loss — is expected to boost European sales.
During the second quarter of 2023, the company launched two new products — RevCore and T16 Curve — targeting patients with venous thromboembolism. These launches look promising for NARI’s long-term growth.
During fourth-quarter 2023, net sales were $132.1 million, indicating a 22.6% increase from the year-ago reported figure. Revenues were driven by higher demand for VTE procedures. Moreover, the company’s new therapies have been gaining adoption among patients. A strong demand in international markets also contributed to sales growth in the quarter.
What’s Weighing on the Stock?
Most of NARI’s product sales come from a limited number of hospitals. The company’s growth and profitability mainly depend on its ability to boost awareness of its products among physicians and patients. These also depend on how keen physicians and hospitals are to adopt its products and perform catheter-based thrombectomy procedures on patients suffering from venous thromboembolism.
Inari Medical’s inability to validate the benefits of its products and catheter-based thrombectomy procedures will result in limited adoption of the same. Moreover, it might not happen as quickly as expected. These factors, in unison, might negatively impact NARI’s business and financial condition.
Also, as Inari Medical anticipates experiencing further operating losses in the near future, it is unable to give assurance of its ability to maintain profitability in the future. This, in turn, will make it more difficult to finance its business and achieve its strategic objectives, thereby impacting its business, financial condition and stock performance.
Estimates Trend
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $586.9 million, indicating an 18.9% increase from the previous year’s reported number. The consensus estimate for the bottom line is pinned at a loss of 39 cents, implying a 400% decline from that recorded a year ago. However, earnings are expected to improve 192.8% in 2025.
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have surged 51.5% compared with the industry’s 3.6% rise in the past year.
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Why You Should Retain Inari Medical (NARI) Stock for Now
Inari Medical, Inc. (NARI - Free Report) is well-poised for growth, backed by a huge market opportunity for its products and its commitment to understanding the venous system. However, its dependency on the adoption of products is concerning.
Shares of this currently Zacks Rank #3 (Hold) company have lost 32.4% in the past year against the industry’s 8.5% growth. The S&P 500 Index has risen 27.2% in the same time frame.
NARI, with a market capitalization of $2.44 billion, is a commercial-stage medical device company. It seeks to develop products for treating and changing the lives of patients suffering from venous diseases.
The company’s negative earnings yield of 0.9% compares favorably with the industry’s (-4.9%). It delivered a trailing four-quarter average earnings surprise of 203.73%.
Image Source: Zacks Investment Research
What’s Driving NARI’s Performance?
Inari Medical is spearheading the creation and commercialization of devices that are purposefully built, keeping in mind the specific characteristics of the venous system, its diseases and unique clot morphology. The company’s in-depth knowledge of its target market and commitment to understanding the venous system allowed it to figure out the unmet needs of patients as well as physicians. This, in turn, has enabled NARI to quickly innovate and improve its products while updating its clinical and educational programs.
In November 2023, NARI acquired and launched LimFlow, a pioneer in limb salvage for patients with chronic limb-threatening ischemia (CLTI). The minimally-invasive LimFlow System is designed to bypass blocked arteries in the leg and deliver oxygenated blood back into the foot via the veins in no-option CLTI patients who are facing major amputation and have exhausted all other therapeutic options. LimFlow recently received FDA’s approval for its Transcatheter Arterialization of Deep Veins system. The acquisition adds a highly differentiated growth platform to Inari Medical’s portfolio that is likely to provide multiple opportunities for expansion, including so in CLTI patient population.
In June 2023, Inari Medical launched two new purpose-built products — the RevCore thrombectomy catheter and the Triever16 Curve catheter.
RevCore is currently the first mechanical thrombectomy device designed to address venous in-stent thrombosis. Triever16 Curve is the latest addition to NARI’s FlowTriever platform.
The latest launches are expected to significantly solidify the company’s foothold in the Venous Stent Thrombosis and Venous Thromboembolism (VTE) treatment space globally.
Strong procedural growth across both its product lines, ClotTriever and FlowTriever, drove the company’s top line in 2023, a trend that is likely to be reflected in 2024.
Moreover, NARI has expanded its product portfolio. It continues to progress well with the launch of Protrieve and InThrill. Continued adoption of FlowSaver — a device designed to be used with the FlowTriever System to reduce blood loss — is expected to boost European sales.
During the second quarter of 2023, the company launched two new products — RevCore and T16 Curve — targeting patients with venous thromboembolism. These launches look promising for NARI’s long-term growth.
During fourth-quarter 2023, net sales were $132.1 million, indicating a 22.6% increase from the year-ago reported figure. Revenues were driven by higher demand for VTE procedures. Moreover, the company’s new therapies have been gaining adoption among patients. A strong demand in international markets also contributed to sales growth in the quarter.
What’s Weighing on the Stock?
Most of NARI’s product sales come from a limited number of hospitals. The company’s growth and profitability mainly depend on its ability to boost awareness of its products among physicians and patients. These also depend on how keen physicians and hospitals are to adopt its products and perform catheter-based thrombectomy procedures on patients suffering from venous thromboembolism.
Inari Medical’s inability to validate the benefits of its products and catheter-based thrombectomy procedures will result in limited adoption of the same. Moreover, it might not happen as quickly as expected. These factors, in unison, might negatively impact NARI’s business and financial condition.
Also, as Inari Medical anticipates experiencing further operating losses in the near future, it is unable to give assurance of its ability to maintain profitability in the future. This, in turn, will make it more difficult to finance its business and achieve its strategic objectives, thereby impacting its business, financial condition and stock performance.
Estimates Trend
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $586.9 million, indicating an 18.9% increase from the previous year’s reported number. The consensus estimate for the bottom line is pinned at a loss of 39 cents, implying a 400% decline from that recorded a year ago. However, earnings are expected to improve 192.8% in 2025.
Inari Medical, Inc. Price
Inari Medical, Inc. price | Inari Medical, Inc. Quote
Stocks to Consider
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 12.1%. DVA’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 35.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 58.3% compared with the industry’s 18.9% rise in the past year.
Cardinal Health, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 14.2%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average being 15.6%.
Cardinal Health has gained 51.9% compared with the industry’s 3.2% rise in the past year.
Cencora, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 9.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.7%.
Cencora’s shares have surged 51.5% compared with the industry’s 3.6% rise in the past year.