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Penumbra (PEN) at 52-Week High: What's Driving the Stock?
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Share price of Penumbra, Inc. (PEN - Free Report) , headquartered in Alameda, CA,scaled a new 52-week high of $91 on Jun 26, eventually closing a little lower at $86.95. The company has witnessed a consistent rally in its share price since the announcement of impressive revenue performance in the first quarter of 2017 on May 9. The company has gained 4.3% since May 9, much better than the S&P 500’s gain of 1.8%.
Average volume of shares traded over the last one year was remarkable at approximately 200K. The stock has a market cap of $2.92 billion.
Comparison with Broader Industry
Over the last six months, the company’s share price has considerably outperformed the Zacks categorized Medical - Instruments sub-industry. The stock has rallied 37.2% over this period, outshining the sub-industry’s return of 18.9%.
Taking the stable performance of the stock into consideration, we expect Penumbra to scale higher in the coming quarters.
This Zacks Rank #3 (Hold) company posted a four-quarter average earnings surprise of 35.7%.
Growth Catalysts
The market is particularly upbeat about the company’s first-quarter revenue performance wherein the company surpassed the Zacks Consensus Estimate. Also, the strong year-over-year improvement in net revenue was encouraging.
We are also upbeat about the company’s promising guidance for 2017, which is indicative that this bullish trend will continue through the year. Penumbra forecasted full-year total revenue at the range of $312 million to $317 million, which represents revenue growth of almost 20% over full-year 2016.
We are also encouraged to note that the company is focusing on product development and innovation. In line with this, the company has introduced a product under the Indigo family, CAT-D. This device is a shorter length thrombectomy tool.
Also, the company received FDA clearance for 3D revascularization device on Apr 20 within its neuro franchise segment. The 3D device is a version of a stent retriever but specifically designed for use with direct aspiration as part of the Penumbra technique.
Further, the company’s latest addition to its SMART COIL family is a wave extra soft finishing coil. Notably, Penumbra’s SMART COIL system is a platinum embolization device comprising complex Standard and Soft coils that change softness profile within a single coil. The latest device with its specific shape helps improve the treatment of aneurysm in a more advanced way.
Also, the two-year data for the MR CLEAN trial showed that patients at the end of two years were doing as good as at the end of three months, specifically in terms of functional independence. The positive trend of lower mortality related to the ischemic stroke was observed over the long term which was not initially seen at the three-month endpoint.
All these factors played a pivotal role in driving the company’s share price to a new 52-week high.
Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock added roughly 33.1% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock gained around 24.1% over the last three months.
Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock added roughly 21.2% over the last three months.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Penumbra (PEN) at 52-Week High: What's Driving the Stock?
Share price of Penumbra, Inc. (PEN - Free Report) , headquartered in Alameda, CA,scaled a new 52-week high of $91 on Jun 26, eventually closing a little lower at $86.95. The company has witnessed a consistent rally in its share price since the announcement of impressive revenue performance in the first quarter of 2017 on May 9. The company has gained 4.3% since May 9, much better than the S&P 500’s gain of 1.8%.
Average volume of shares traded over the last one year was remarkable at approximately 200K. The stock has a market cap of $2.92 billion.
Comparison with Broader Industry
Over the last six months, the company’s share price has considerably outperformed the Zacks categorized Medical - Instruments sub-industry. The stock has rallied 37.2% over this period, outshining the sub-industry’s return of 18.9%.
Taking the stable performance of the stock into consideration, we expect Penumbra to scale higher in the coming quarters.
Penumbra, Inc. Price and Consensus
Penumbra, Inc. Price and Consensus | Penumbra, Inc. Quote
Positive Earnings Surprise
This Zacks Rank #3 (Hold) company posted a four-quarter average earnings surprise of 35.7%.
Growth Catalysts
The market is particularly upbeat about the company’s first-quarter revenue performance wherein the company surpassed the Zacks Consensus Estimate. Also, the strong year-over-year improvement in net revenue was encouraging.
We are also upbeat about the company’s promising guidance for 2017, which is indicative that this bullish trend will continue through the year. Penumbra forecasted full-year total revenue at the range of $312 million to $317 million, which represents revenue growth of almost 20% over full-year 2016.
We are also encouraged to note that the company is focusing on product development and innovation. In line with this, the company has introduced a product under the Indigo family, CAT-D. This device is a shorter length thrombectomy tool.
Also, the company received FDA clearance for 3D revascularization device on Apr 20 within its neuro franchise segment. The 3D device is a version of a stent retriever but specifically designed for use with direct aspiration as part of the Penumbra technique.
Further, the company’s latest addition to its SMART COIL family is a wave extra soft finishing coil. Notably, Penumbra’s SMART COIL system is a platinum embolization device comprising complex Standard and Soft coils that change softness profile within a single coil. The latest device with its specific shape helps improve the treatment of aneurysm in a more advanced way.
Also, the two-year data for the MR CLEAN trial showed that patients at the end of two years were doing as good as at the end of three months, specifically in terms of functional independence. The positive trend of lower mortality related to the ischemic stroke was observed over the long term which was not initially seen at the three-month endpoint.
All these factors played a pivotal role in driving the company’s share price to a new 52-week high.
Key Picks
A few better-ranked medical stocks are Align Technology, Inc. (ALGN - Free Report) , Inogen, Inc. (INGN - Free Report) and Accelerate Diagnostics, Inc. (AXDX - Free Report) . Notably, Align Technology and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries 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 added roughly 33.1% over the last three months.
Inogen has a long-term expected earnings growth rate of 17.5%. The stock gained around 24.1% over the last three months.
Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock added roughly 21.2% over the last three months.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>.