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CryoLife (CRY) Now a Strong Buy: Should You Add the Stock?
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On Dec 6, CryoLife Inc. was raised to a Zacks Rank #1 (Strong Buy). Headquartered in Kennesaw, GA, the company manufactures and distributes medical devices worldwide.
Estimate Revisions
The estimate revision trend for the company is pretty favorable at the moment with three estimates going up and no downward movement over the last 60 days.
The Zacks Consensus Estimate for full-year 2016 is currently pegged at 44 cents per share, which moved up 10 cents over the same time frame.
Meanwhile, the Zacks Consensus Estimate for full-year 2017 has been revised upward by 5 cents to the present 43 cents per share.
Why the Upgrade?
The stock represents a stellar year-to-date return of almost 68.4%, way better than the Zacks categorized Medical Instruments sub-industry’s return of roughly a negative 2.9% and the S&P 500’s return of 8.2%.
In fact, post a solid performance in the last quarter, the company’s shares gained almost 8.7%, raising investors’ hopes.
The stock promises an earnings yield of 2.46%, compared to the industry’s negative yield of 3.45%.
Coming to projected sales, the stock holds a growth rate of 25.16% for the current year, compared to the industry’s 6.29%. CryoLife registered positive earnings surprises in the last four quarters, the average being 333.75%.
The Catalysts
The acquisition of On-X Life, a TX-based mechanical heart valve company, is a key growth driver for CryoLife.
Notably, the acquisition marked CryoLife’s advent into the Mechanical Heart Valve market, which is expected to reach a worth of $4.80 billion by 2020, growing at a CAGR of 9.1% globally (Markets And Markets). Notably, the acquisition represented year-over-year revenue growth of 6% in the just reported third quarter of 2016.
In this regard, CryoLife reported stellar third-quarter results, with adjusted earnings of 13 cents per share crushing the Zacks Consensus Estimate of 4 cents. Revenues of $45.3 million were in line with the estimate mark but increased almost 21.6% on a year-over-year basis.
Solid sales at the BioGlue product line in the U.S. and international markets have also been a significant positive for the stock. Notably, total BioGlue sales in the third quarter were $15.9 million, up 12% year over year, courtesy of solid sales in France and Japan. In fact, CryoLife is on track to start enrollment under the BioGlue clinical trial platform in the first quarter of 2017 in China.
Coming to forecasts, CryoLife expects to end the year with a solid fourth quarter. Revenues for the full year are projected in the band of $181–$182.5 million, up from the previous range of $180–$182 million. Adjusted earnings are expected in the range of 43–45 cents per share, compared to the previous guidance of 32–34 cents.
Other Key Picks
Other favorably ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and HMS Holdings Corp. . Addus HomeCare and LHC Group sport a Zacks Rank #1 (Strong Buy) while HMS Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 50.4%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 1.2% in the last one month.
HMS Holdings has an expected earnings growth of almost 14.3%. The company posted a promising year-to-date return of 46.7%.
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CryoLife (CRY) Now a Strong Buy: Should You Add the Stock?
On Dec 6, CryoLife Inc. was raised to a Zacks Rank #1 (Strong Buy). Headquartered in Kennesaw, GA, the company manufactures and distributes medical devices worldwide.
Estimate Revisions
The estimate revision trend for the company is pretty favorable at the moment with three estimates going up and no downward movement over the last 60 days.
The Zacks Consensus Estimate for full-year 2016 is currently pegged at 44 cents per share, which moved up 10 cents over the same time frame.
CRYOLIFE INC Price and Consensus
CRYOLIFE INC Price and Consensus | CRYOLIFE INC Quote
Meanwhile, the Zacks Consensus Estimate for full-year 2017 has been revised upward by 5 cents to the present 43 cents per share.
Why the Upgrade?
The stock represents a stellar year-to-date return of almost 68.4%, way better than the Zacks categorized Medical Instruments sub-industry’s return of roughly a negative 2.9% and the S&P 500’s return of 8.2%.
In fact, post a solid performance in the last quarter, the company’s shares gained almost 8.7%, raising investors’ hopes.
The stock promises an earnings yield of 2.46%, compared to the industry’s negative yield of 3.45%.
Coming to projected sales, the stock holds a growth rate of 25.16% for the current year, compared to the industry’s 6.29%. CryoLife registered positive earnings surprises in the last four quarters, the average being 333.75%.
The Catalysts
The acquisition of On-X Life, a TX-based mechanical heart valve company, is a key growth driver for CryoLife.
Notably, the acquisition marked CryoLife’s advent into the Mechanical Heart Valve market, which is expected to reach a worth of $4.80 billion by 2020, growing at a CAGR of 9.1% globally (Markets And Markets). Notably, the acquisition represented year-over-year revenue growth of 6% in the just reported third quarter of 2016.
In this regard, CryoLife reported stellar third-quarter results, with adjusted earnings of 13 cents per share crushing the Zacks Consensus Estimate of 4 cents. Revenues of $45.3 million were in line with the estimate mark but increased almost 21.6% on a year-over-year basis.
Solid sales at the BioGlue product line in the U.S. and international markets have also been a significant positive for the stock. Notably, total BioGlue sales in the third quarter were $15.9 million, up 12% year over year, courtesy of solid sales in France and Japan. In fact, CryoLife is on track to start enrollment under the BioGlue clinical trial platform in the first quarter of 2017 in China.
Coming to forecasts, CryoLife expects to end the year with a solid fourth quarter. Revenues for the full year are projected in the band of $181–$182.5 million, up from the previous range of $180–$182 million. Adjusted earnings are expected in the range of 43–45 cents per share, compared to the previous guidance of 32–34 cents.
Other Key Picks
Other favorably ranked stocks in the broader medical sector include Addus HomeCare Corporation (ADUS - Free Report) , LHC Group, Inc. and HMS Holdings Corp. . Addus HomeCare and LHC Group sport a Zacks Rank #1 (Strong Buy) while HMS Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Addus HomeCare has a long-term expected earnings growth rate of approximately 15%. Notably, the stock represents an impressive one-year return of 50.4%.
LHC Group has a long-term expected earnings growth rate of 15%. The company has returned almost 1.2% in the last one month.
HMS Holdings has an expected earnings growth of almost 14.3%. The company posted a promising year-to-date return of 46.7%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>