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Goleta, CA-based Inogen Inc. (INGN - Free Report) , a provider of portable oxygen concentrators (POC), is on a healthy growth trajectory of late. It has rallied 96.6% over the past one year, ahead of the S&P 500’s 14.4% gain. The stock has a market cap of $1.9 billion.

Also, the company represented a return of almost 20.8%, better than the Zacks categorized Medical - Instruments sub-industry's gain of 7.9% in the last three months.With solid growth prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick at present.

Let’s find out whether the recent positive trend is a sustainable one.

The company’s estimate revision trend for the current year has also been positive. In the past 60 days, five analysts moved north, with no movement in the opposite direction. The magnitude of estimate revision increased around 6.7% to $1.10 per share over the same time frame.

Of late, Inogen has been riding high on solid prospects of its Inogen One POCs portfolio. As per management, there are 2.5 million to 3 million patients in the U.S. and over 4.5 million patients worldwide who use oxygen therapy. POCs solve most of the problems associated with conventional oxygen therapy that involves stationary oxygen concentrator systems for use in the home and oxygen tanks or cylinders for mobile use. This opens up significant opportunities for Inogen.

Apart from Inogen One G3 and G2, the company offers Inogen At Home stationary oxygen concentrator, which helps it to address the needs of non-ambulatory patients. Recently, the company received the EC Certificate for the Inogen One G4 POC. Thus, the device is now available for sale in select international countries.

Notably, Inogen generates a significant portion of its revenues from the international market. The company is currently planning to expand its presence in the Asia-Pacific region as there is a growing demand for POCs in this region.

Meanwhile, Inogen has provided a positive guidance for full-year 2017. The company’s unique direct-to-customer business model and growing patient base are key catalysts in our view.

However, downside to the rank may come from factors like the ongoing rental revenue headwinds due to private insurance rate reductions, higher provisions for rental revenue adjustments and lower net patient additions. Volatility in foreign exchange rate is also expected to mar the company’s top line in the coming quarters.

Other Key Picks

Other top-ranked medical stocks are Align Technology, Inc. (ALGN - Free Report) , Hill-Rom Holdings Inc. (HRC - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Notably, Align Technology sports a Zacks Rank #1, while Hill-Rom Holdings and Accelerate Diagnostics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has roughly added 28.1% over the last three months.

Hill-Rom Holdings has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 55%.

Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock has gained roughly 19.5% over the last three months.

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