We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you accept our Privacy Policy and Terms of Service, revised from time to time, and you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
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.
Is Penumbra Stock a Smart Buy for Your Portfolio Right Now?
Read MoreHide Full Article
Penumbra, Inc.’s (PEN - Free Report) robust portfolio expansion efforts are poised to help it grow in the upcoming quarters. The company expects impressive growth as it expands globally throughout the rest of 2024 and beyond. A robust solvency position also bodes well for the stock. Meanwhile, macroeconomic volatilities and fiercely competitive space remain a concern for Penumbra.
In the past year, shares of this Zacks Rank #2 (Buy) company have rallied 7.1% compared with the industry’s 14.5% growth and the S&P 500 composite’s gain of 32.4%.
The global healthcare provider company has a market capitalization of $9.37 billion. PEN surpassed earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
Tailwinds for Penumbra
Strong Portfolio Expansion: The company’s consistent revenue growth momentum is driven by extraordinary outcomes from treatment with Lightning Flash, Lightning Bolt 7 and RED 72 with SENDit technology. In the third quarter, Penumbra received FDA clearance for two new CAVT products, Lightning Bolt 6X and Lightning Bolt 12, which further enhance and build out an increasingly comprehensive CAVT portfolio.
In 2024 and beyond, the company plans to strongly focus on Flash and Bolt innovations. Last month, Penumbra released new late-breaking data on CAVT for patients with intermediate-risk pulmonary embolism (PE). Combined with Flash and Bolt 7, PEN expects its CAVT portfolio to drive market share and growth in Deep vein thrombosis (DVT), PE and arterial. It is also advancing with the THUNDER study and is in the process of bringing Thunderbolt to the market. The company now holds nearly 60% market share in the U.S. stroke market and expects to gain more share through 2024 ahead of a Thunderbolt launch.
Image Source: Zacks Investment Research
Global Expansion Continues: Penumbra expects to materially increase revenues and profitability in the company’s international business in the next three years and beyond. During this period, the company expects to bring its franchise products like RED catheters and CAT RX together with all its most advanced products, Lightning Flash, Lightning Bolt 7 and Thunderbolt, to Penumbra global teams. Internationally, the company projects early success with the launch of its first-generation computer-aided products in Europe.
Penumbra has plans to expand access to its most advanced thrombectomy products to its international vascular teams over the next few years. In the third quarter of 2024, the company received the CE Mark for Lightning Flash 2.0 and Lightning Bolt 7 in mid-September 2024 and is in the early phases of introducing the company’s transformative technology to European markets. These are expected to have a pronounced impact on the company’s international growth in 2025.
Stable Solvency Structure: Penumbra exited the third quarter of 2024 with cash and cash equivalents of $291 million compared with $340 million and no short-term payable debt on its balance sheet. This is good news in terms of the company’s solvency position, particularly during the global inflationary situation and supply delays. Total debt-to-capital was low at 2% compared with the industry’s 30.9%.
Downsides for PEN
Macroeconomic Concerns: Outside the United States, Penumbra sells its products to healthcare providers through direct sales organizations and distributors in select international markets. Like other industry players, Penumbra’s business is currently impacted by worldwide geopolitical complications, leading to a widespread impact on global supply chains and labor markets. These have resulted in cost escalation and raw material supply constraints, as well as an increase in employee turnover rates in certain jurisdictions. All these factors are putting significant pressure on Penumbra’s profitability.
Tough Competitive Landscape: Penumbra competes with several manufacturers and distributors of neuro and vascular medical devices, most of them being large, well-capitalized companies with longer operating histories and greater resources than Penumbra. As a consequence, they are able to spend more on product development, marketing, sales and other product initiatives than Penumbra. The company also competes with many smaller medical device companies with single products or a limited range of products.
PEN Stock Estimate Trends
In the past 30 days, the Zacks Consensus Estimate for Penumbra’s 2024 earnings has jumped 5.2% to $2.81.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $1.19 billion, indicating a 12.6% rise from the year-ago reported number.
Other Top MedTech Stocks
Some other top-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Boston Scientific (BSX - Free Report) and Globus Medical (GMED - Free Report) .
Haemonetics has an earnings yield of 5.41% compared with the industry’s 1.75%. Haemonetics’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 2.82%. Its shares have risen 8.9% compared with the industry’s 21.2% growth in the past year.
Boston Scientific, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 13.8%. Shares of the company have surged 63.4% compared with the industry’s 23.1% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.29%.
Globus Medical, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 28.5% for 2024 compared with the industry’s 15.4%. Shares of the company have risen 81.2% compared with the industry’s 14.5% growth over the past year. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Is Penumbra Stock a Smart Buy for Your Portfolio Right Now?
Penumbra, Inc.’s (PEN - Free Report) robust portfolio expansion efforts are poised to help it grow in the upcoming quarters. The company expects impressive growth as it expands globally throughout the rest of 2024 and beyond. A robust solvency position also bodes well for the stock. Meanwhile, macroeconomic volatilities and fiercely competitive space remain a concern for Penumbra.
In the past year, shares of this Zacks Rank #2 (Buy) company have rallied 7.1% compared with the industry’s 14.5% growth and the S&P 500 composite’s gain of 32.4%.
The global healthcare provider company has a market capitalization of $9.37 billion. PEN surpassed earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
Tailwinds for Penumbra
Strong Portfolio Expansion: The company’s consistent revenue growth momentum is driven by extraordinary outcomes from treatment with Lightning Flash, Lightning Bolt 7 and RED 72 with SENDit technology. In the third quarter, Penumbra received FDA clearance for two new CAVT products, Lightning Bolt 6X and Lightning Bolt 12, which further enhance and build out an increasingly comprehensive CAVT portfolio.
In 2024 and beyond, the company plans to strongly focus on Flash and Bolt innovations. Last month, Penumbra released new late-breaking data on CAVT for patients with intermediate-risk pulmonary embolism (PE). Combined with Flash and Bolt 7, PEN expects its CAVT portfolio to drive market share and growth in Deep vein thrombosis (DVT), PE and arterial. It is also advancing with the THUNDER study and is in the process of bringing Thunderbolt to the market. The company now holds nearly 60% market share in the U.S. stroke market and expects to gain more share through 2024 ahead of a Thunderbolt launch.
Image Source: Zacks Investment Research
Global Expansion Continues: Penumbra expects to materially increase revenues and profitability in the company’s international business in the next three years and beyond. During this period, the company expects to bring its franchise products like RED catheters and CAT RX together with all its most advanced products, Lightning Flash, Lightning Bolt 7 and Thunderbolt, to Penumbra global teams. Internationally, the company projects early success with the launch of its first-generation computer-aided products in Europe.
Penumbra has plans to expand access to its most advanced thrombectomy products to its international vascular teams over the next few years. In the third quarter of 2024, the company received the CE Mark for Lightning Flash 2.0 and Lightning Bolt 7 in mid-September 2024 and is in the early phases of introducing the company’s transformative technology to European markets. These are expected to have a pronounced impact on the company’s international growth in 2025.
Stable Solvency Structure: Penumbra exited the third quarter of 2024 with cash and cash equivalents of $291 million compared with $340 million and no short-term payable debt on its balance sheet. This is good news in terms of the company’s solvency position, particularly during the global inflationary situation and supply delays. Total debt-to-capital was low at 2% compared with the industry’s 30.9%.
Downsides for PEN
Macroeconomic Concerns: Outside the United States, Penumbra sells its products to healthcare providers through direct sales organizations and distributors in select international markets. Like other industry players, Penumbra’s business is currently impacted by worldwide geopolitical complications, leading to a widespread impact on global supply chains and labor markets. These have resulted in cost escalation and raw material supply constraints, as well as an increase in employee turnover rates in certain jurisdictions. All these factors are putting significant pressure on Penumbra’s profitability.
Tough Competitive Landscape: Penumbra competes with several manufacturers and distributors of neuro and vascular medical devices, most of them being large, well-capitalized companies with longer operating histories and greater resources than Penumbra. As a consequence, they are able to spend more on product development, marketing, sales and other product initiatives than Penumbra. The company also competes with many smaller medical device companies with single products or a limited range of products.
PEN Stock Estimate Trends
In the past 30 days, the Zacks Consensus Estimate for Penumbra’s 2024 earnings has jumped 5.2% to $2.81.
The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $1.19 billion, indicating a 12.6% rise from the year-ago reported number.
Other Top MedTech Stocks
Some other top-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Boston Scientific (BSX - Free Report) and Globus Medical (GMED - Free Report) .
Haemonetics has an earnings yield of 5.41% compared with the industry’s 1.75%. Haemonetics’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 2.82%. Its shares have risen 8.9% compared with the industry’s 21.2% growth in the past year.
HAE carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 13.8%. Shares of the company have surged 63.4% compared with the industry’s 23.1% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.29%.
Globus Medical, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 28.5% for 2024 compared with the industry’s 15.4%. Shares of the company have risen 81.2% compared with the industry’s 14.5% growth over the past year. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%.