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Inogen (INGN) Hits a 52-Week High: What's Driving the Stock?

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Share price of Goleta, CA-based Inogen Inc (INGN - Free Report) rallied to a new 52-week high of $65.13 on Nov 16, eventually closing a tad lower at $64.91. This represents an impressive one-year return of approximately 66%, better than the S&P 500’s 4.5% over the same period. It has added roughly 61.9% year to date compared to the S&P 500’s 6.5%.

Inogen is an attractive growth stock with an impressive one-year projected earnings growth rate of almost 28.75%, much higher than the industry’s average of 12.12%.

Meanwhile, we note that Inogen carries a Zacks Rank #3 (Hold). The stock has a market cap of $1.30 billion.

Estimate Revisions

Estimate revision trend for the company also looks pretty favorable at the moment. The Zacks Consensus Estimate for fiscal 2016 rose by a penny to 62 cents over the last seven days.

Similarly, for fiscal 2017, estimates have increased by a penny to 78 cents over the same time frame.

Key Catalysts

Inogen is gaining prominence in the market with its ‘direct-to-consumer approach’. Per management, Inogen unifies ‘direct-to-consumer play’ and ‘direct-to-consumer care’ into one business model, which boosts the ease of the home medical equipment (HME) community.

INOGEN INC Price and Consensus

 

INOGEN INC Price and Consensus | INOGEN INC Quote

Inogen's unique direct-to-customer business model, innovative product line and growing patient base are the key catalysts in our view. New products like the Inogen One G4 and the upgraded Inogen One G3 are expected to drive growth further.

The high adoption rate of portable oxygen containers (POCs) among traditional home medical equipment (HME) providers is also likely to drive revenues.

Inogen reported a better-than-expected third quarter of 2016 with revenues and adjusted earnings beating Zacks Consensus Estimate. Even on a year-over-year basis, the company registered stupendous top- and bottom-line growth.

The company witnessed solid sales in Europe in the last reported quarter. In fact, Europe represented 90.8% of international sales in the third quarter of 2016 boosting the business-to-business revenues.

Key Picks

Better-ranked stocks in the broader medical space include Baxter International Inc. (BAX - Free Report) , NxStage Medical, Inc. (NXTM - Free Report) and IDEXX Laboratories, Inc. (IDXX - Free Report) , all of which sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Baxter International represents a strong long-term expected growth rate of 12.3%. Notably, the company has a solid one-year return of roughly 20.9%.

NxStage Medical has a stellar one-year return of roughly 31.7%. The company also has a promising long-term expected growth rate of 18.3%.

IDEXX Laboratories represents a solid one-year return of almost 64.9%. The company has a long-term expected growth rate of almost 14.96%.

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