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Here's Why Investors Should Buy Edwards Lifesciences Now
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Headquartered in Irvine, CA, medical device major Edwards Lifesciences Corporation (EW - Free Report) specializes in advanced cardiovascular diseases, especially structural heart disease. The stock is on a healthy growth trajectory of late.
It has rallied 28.8% over the last six months, ahead of the S&P 500’s 5.1% gain and the broader industry’s 8.2%. The stock has a market cap of $24.4 billion. The company’s five-year historical growth rate is also favorable at 21.2% as compared with 9.5% of the broader industry and 2.8% of the S&P 500.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick.
The company’s estimate revision trend for the current quarter has also been positive. In the past 30 days, nine analysts moved north, with no movement in the opposite direction. The magnitude of estimate revision increased around 6.1% to 87 cents per share over the same time frame.
Let’s find out whether the recent positive trend is a sustainable one.
Edwards Lifesciences’s second-quarter 2017 performance was quite promising with the company beating the Zacks Consensus Estimate for revenues and earnings. Moreover, the raised guidance for 2017 hints at brighter prospects. In fact, the guidance raise was backed by strong performance by all of the company’s three product lines.
The market is also upbeat about Edwards Lifesciences’s recent FDA approval for its INSPIRIS RESILIA aortic valve. This is the first-in-class among resilient heart valves.
The company also announced the receipt of FDA approval for aortic and mitral valve-in-valve procedures using Edwards Lifesciences’s SAPIEN 3 transcatheter heart valve.
We believe that the recent FDA approvals for several products have been boosting investors’ confidence in the stock.
We are encouraged by Edwards Lifesciences’s focus on building its pipeline that should further strengthen its foothold across all operating businesses. The company also witnessed growth in its emerging portfolio of mitral and tricuspid repair therapies.
As per the latest plans, the company’s new ultra system, including an on-balloon delivery system and next-generation sheath technology, is expected to be available in Europe from the second half of 2017.
The company is on track to initiate the launch of its Acumen HPI software suite with the new FloTrac IQ Smart Disposable and INSPIRIS RESILIA aortic valve in Europe and Japan by the end of 2017.
However, stiff competition, currency headwind and reimbursement issues are challenges for the stock.
Align Technology has a long-term expected earnings growth rate of 26.6%. The stock has rallied roughly 29.6% over the last three months.
Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has gained 66.1% over the last six months.
IDEXX Laboratories has a long-term expected earnings growth rate of 9.1%. The stock has gained around 3.2% over the last six months.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
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Here's Why Investors Should Buy Edwards Lifesciences Now
Headquartered in Irvine, CA, medical device major Edwards Lifesciences Corporation (EW - Free Report) specializes in advanced cardiovascular diseases, especially structural heart disease. The stock is on a healthy growth trajectory of late.
It has rallied 28.8% over the last six months, ahead of the S&P 500’s 5.1% gain and the broader industry’s 8.2%. The stock has a market cap of $24.4 billion. The company’s five-year historical growth rate is also favorable at 21.2% as compared with 9.5% of the broader industry and 2.8% of the S&P 500.
With solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick.
The company’s estimate revision trend for the current quarter has also been positive. In the past 30 days, nine analysts moved north, with no movement in the opposite direction. The magnitude of estimate revision increased around 6.1% to 87 cents per share over the same time frame.
Let’s find out whether the recent positive trend is a sustainable one.
Edwards Lifesciences’s second-quarter 2017 performance was quite promising with the company beating the Zacks Consensus Estimate for revenues and earnings. Moreover, the raised guidance for 2017 hints at brighter prospects. In fact, the guidance raise was backed by strong performance by all of the company’s three product lines.
The market is also upbeat about Edwards Lifesciences’s recent FDA approval for its INSPIRIS RESILIA aortic valve. This is the first-in-class among resilient heart valves.
The company also announced the receipt of FDA approval for aortic and mitral valve-in-valve procedures using Edwards Lifesciences’s SAPIEN 3 transcatheter heart valve.
We believe that the recent FDA approvals for several products have been boosting investors’ confidence in the stock.
We are encouraged by Edwards Lifesciences’s focus on building its pipeline that should further strengthen its foothold across all operating businesses. The company also witnessed growth in its emerging portfolio of mitral and tricuspid repair therapies.
As per the latest plans, the company’s new ultra system, including an on-balloon delivery system and next-generation sheath technology, is expected to be available in Europe from the second half of 2017.
The company is on track to initiate the launch of its Acumen HPI software suite with the new FloTrac IQ Smart Disposable and INSPIRIS RESILIA aortic valve in Europe and Japan by the end of 2017.
However, stiff competition, currency headwind and reimbursement issues are challenges for the stock.
Other Key Picks
Other top-ranked medical stocks are IDEXX Laboratories, Inc. (IDXX - Free Report) , Lantheus Holdings, Inc. (LNTH - Free Report) and Align Technology, Inc. (ALGN - Free Report) . Align Technology sports a Zacks Rank #1, while Lantheus Holdings and IDEXX Laboratories carry a Zacks Rank #2 (Buy). You cansee the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has a long-term expected earnings growth rate of 26.6%. The stock has rallied roughly 29.6% over the last three months.
Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has gained 66.1% over the last six months.
IDEXX Laboratories has a long-term expected earnings growth rate of 9.1%. The stock has gained around 3.2% over the last six months.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>