We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
CryoLife Hits a 52-Week High: What's Driving the Stock?
Read MoreHide Full Article
Leading medical device and tissue processing company, CryoLife, Inc. rallied to a new 52-week high of $20.20 on Jun 27, eventually closing a little lower at $19.65. This represents a positive return of almost 2% over the last six months.
For majority of the last one year, the company’s share price has outperformed the Zacks classified Medical - Instruments sub-industry. The stock has rallied 67.7%, outshining the sub-industry’s gain of 16.3%. Notably, the stock has a market cap of $658.56 million.
Taking the stable performance of the stock into consideration, we expect CryoLife to gain more ground in the coming quarters.
The acquisition of On-X Life, a Texas-based mechanical heart valve company, is a key growth driver for CryoLife. Notably, the buyout marked CryoLife’s entry into the Mechanical Heart Valve market, which is expected to scale to a worth of $4.80 billion by 2020, at a CAGR of 9.1% globally (Markets And Markets).
During the last quarter, CryoLife announced its target to achieve double-digit revenue growth at the On-X platform. In this regard, the On-X business grew 12% on a year-over-year basis to $8.9 million in the first quarter, which includes an unfavorable $479,000 revenue diminution, thanks to inventory buybacks by the Benelux and Canadian distributors.
CryoLife rides high on the strength in its vascular and BioGlue segments. Revenues at the vascular segment increased 6% year over year, driven by a 7% increase in unit shipments.
Coming to the BioGlue line, Europe and other international markets have been a significant positive for the stock. Notably, total BioGlue sales in the first quarter were $15.6 million, up 2% year over year, courtesy of solid sales in Brazil and Japan. In fact, CryoLife is on track to receive regulatory approval for the product line in China by 2019.
We are also upbeat on CryoLife’s plans to transit its distributor sales channels in Canada, Belgium and Netherlands to direct sales. This is likely to benefit the company’s top line in the coming quarters.
Estimate Revisions
The estimate revision trend for the current year is pretty favorable at the moment with one estimate going up and no downward movement over the last 60 days. The Zacks Consensus Estimate stands at 42 cents per share, reflecting an increase of 9.8% over the same time frame.
Key Picks
A few other top-ranked stocks in the broader medical sector are Inogen Inc. (INGN - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Luminex Corporation . Notably, Inogen and Luminex sport a Zacks Rank #1 (Strong Buy), while IDEXX Laboratories holds a Zacks Rank 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock represents an impressive one-year return of 86.6%.
IDEXX Laboratories has a long-term expected earnings growth rate of 19.4%. Notably, the stock represents an impressive one-year return of 78.3%.
Luminex has a long-term expected earnings growth rate of 16.25%. Additionally, the stock represents an impressive one-year return of 5.2%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CryoLife Hits a 52-Week High: What's Driving the Stock?
Leading medical device and tissue processing company, CryoLife, Inc. rallied to a new 52-week high of $20.20 on Jun 27, eventually closing a little lower at $19.65. This represents a positive return of almost 2% over the last six months.
For majority of the last one year, the company’s share price has outperformed the Zacks classified Medical - Instruments sub-industry. The stock has rallied 67.7%, outshining the sub-industry’s gain of 16.3%. Notably, the stock has a market cap of $658.56 million.
Taking the stable performance of the stock into consideration, we expect CryoLife to gain more ground in the coming quarters.
The stock currently has a Zacks Rank #2 (Buy).
CryoLife, Inc. Price and Consensus
CryoLife, Inc. Price and Consensus | CryoLife, Inc. Quote
Key Catalysts
The acquisition of On-X Life, a Texas-based mechanical heart valve company, is a key growth driver for CryoLife. Notably, the buyout marked CryoLife’s entry into the Mechanical Heart Valve market, which is expected to scale to a worth of $4.80 billion by 2020, at a CAGR of 9.1% globally (Markets And Markets).
During the last quarter, CryoLife announced its target to achieve double-digit revenue growth at the On-X platform. In this regard, the On-X business grew 12% on a year-over-year basis to $8.9 million in the first quarter, which includes an unfavorable $479,000 revenue diminution, thanks to inventory buybacks by the Benelux and Canadian distributors.
CryoLife rides high on the strength in its vascular and BioGlue segments. Revenues at the vascular segment increased 6% year over year, driven by a 7% increase in unit shipments.
Coming to the BioGlue line, Europe and other international markets have been a significant positive for the stock. Notably, total BioGlue sales in the first quarter were $15.6 million, up 2% year over year, courtesy of solid sales in Brazil and Japan. In fact, CryoLife is on track to receive regulatory approval for the product line in China by 2019.
We are also upbeat on CryoLife’s plans to transit its distributor sales channels in Canada, Belgium and Netherlands to direct sales. This is likely to benefit the company’s top line in the coming quarters.
Estimate Revisions
The estimate revision trend for the current year is pretty favorable at the moment with one estimate going up and no downward movement over the last 60 days. The Zacks Consensus Estimate stands at 42 cents per share, reflecting an increase of 9.8% over the same time frame.
Key Picks
A few other top-ranked stocks in the broader medical sector are Inogen Inc. (INGN - Free Report) , IDEXX Laboratories, Inc. (IDXX - Free Report) and Luminex Corporation . Notably, Inogen and Luminex sport a Zacks Rank #1 (Strong Buy), while IDEXX Laboratories holds a Zacks Rank 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.50%. Notably, the stock represents an impressive one-year return of 86.6%.
IDEXX Laboratories has a long-term expected earnings growth rate of 19.4%. Notably, the stock represents an impressive one-year return of 78.3%.
Luminex has a long-term expected earnings growth rate of 16.25%. Additionally, the stock represents an impressive one-year return of 5.2%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>