Back to top

Image: Bigstock

AngioDynamics' BioFlo Platform Strong, Debt Levels High

Read MoreHide Full Article

On Sep 15, we issued an updated research report on Latham, NY-based AngioDynamics Inc. ((ANGO - Free Report) ). The company is expected to maintain focus on exclusive technology that offers superior outcome and economic value to the U.S. healthcare system. The company currently has a Zacks Rank #3 (Hold).

Strong demand for the company’s BioFlo platform continues to drive sales for AngioDynamics. AngioDynamics’ expanding product portfolio, international market expansion and cost-saving initiatives represent considerable growth opportunities. The company designs, manufactures and sells a wide range of medical, surgical and diagnostic devices.

The exclusive Endexo technology in BioFlo is expected to enhance the company’s growth trajectory. In fact, the new BioFlo Midline catheter feature has gained significant traction within a short span of time owing to its easy insertion procedure and ability to effectively draw blood.

Apart from BioFlo, AngioDynamics is a leading player in the thrombolytic catheters space (catheter directed thrombolysis) as well. The company boasts unique catheters like Uni-Fuse, SpeedLyser and Pulse Spray under the thrombus portfolio.

On the flipside, AngioDynamics has a high debt levels. This is likely to impose certain operating and financial restrictions, impeding the company’s core business initiatives. The company ended the fourth quarter of fiscal 2017 with $97.5 million in debt.

Notably, if the company’s operating results or capital resources prove inadequate, it may face substantial liquidity problems and would be forced to dispose of material assets or operations to meet its debt obligations. Additionally, the company might also be required to reduce or delay planned expansion and capital expenditures, sell assets, restructure or refinance its debt or seek additional equity capital.

A sluggish capital-spending environment, third-party risks and pricing headwinds due to aggressive competition and regulatory setbacks are also expected to dent top-line growth.

The company yielded a return of almost 6.7% over the last year. The current level is significantly below the S&P 500’s 3.9% over the same time frame. Furthermore, the current level is lower than the broader industry’s gain of 8.1%. Notably, AngioDynamics is exposed to pricing headwinds stemming from lower selling prices of peripheral vascular products due to aggressive price competition.

Key Picks

A few better-ranked stocks in the broader medical sector are Edwards Lifesciences Corp. ((EW - Free Report) ), IDEXX Laboratories, Inc. ((IDXX - Free Report) ) and Cogentix Medical, Inc. ((CGNT - Free Report) ).

Notably, Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while IDEXX Laboratories and Cogentix Medical have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences delivered an average earnings beat of 10.8% over the last four quarters. The company has a long-term expected earnings growth rate of 15.2%.

IDEXX Laboratories delivered an average earnings beat of 9.3% over the trailing four quarters. It has a long-term expected earnings growth rate of 19.8%.

Cogentix Medical came up with a positive earnings surprise of 200% in the last quarter. The stock represented a stellar return of 100.9% over the last year.

New Report: An Investor’s Guide to Cybersecurity

Cyberattacks have become more frequent and destructive than ever. In fact, they’re expected to cause $6 trillion per year in damage by 2020.

The cybersecurity industry is expanding quickly in response to these threats. In fact, a projected $170 billion per year will be spent to protect consumer and corporate assets. Zacks has just released Cybersecurity: An Investor’s Guide to Locking Down Profits which reveals 4 promising investment candidates.

Download the new report now>>

Published in