TransEnterix Inc. (TRXC - Free Report) , a global medical technology company, recently announced that it has filed a response with the FDA related to its Senhance Surgical Robotic System 510(k) submission. The company expects to receive the FDA approval for the system in fiscal 2017 itself.
TransEnterix’s shares have outperformed the industry in the past three months. The stock has skyrockected 124.5% compared with the industry's 0.5% gain in the same period. The current level is better than the S&P 500's return of 2.4%.
The estimate revision trend for the stock has been dismal with two estimates moving south in the last two months, and no estimate moving north. Notably, the current year estimate for the stock decreased 3 cents to a loss of 41 cents per share over the same time frame.
Coming back to the news, we are bullish on the company’s progress toward the FDA approval for Senhance Robotic Surgery System. Senhance is a multiport surgical robotic system which helps perform minimally invasive surgery in patients. Recently, the system got installed in Imperial College of London, U.K. Notably, Senhance is CE Marked for use in general surgery, gynecology, urology and thoracic surgery, but is not available for sale in the United States. The company acquired Senhance from Italy’s Sofar S.p.A. in 2015.
We are upbeat on the global market trends that show that the minimally invasive surgical instruments market is forecasted to reach a total of $21.47 billion by 2021 at a CAGR of 9.1% (Markets And Markets). Following the submission and clearance of the Senhance system by the FDA, the company would be able to tap into the bountiful prospects in the domestic market.
Zacks Rank & Key Picks
TransEnterix carries a Zacks Rank #3 (Hold). A few better-ranked medical stocks in the medical sector are Edwards Lifesciences Corporation (EW - Free Report) , Lantheus Holdings, Inc (LNTH - Free Report) and IDEXX Laboratories, Inc (IDXX - Free Report) . Edwards Lifesciences sports a Zacks Rank #1 (Strong Buy), while Lantheus Holdings and IDEXX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 19.9% in the last six months.
Lantheus Holdings has a long-term expected earnings growth rate of 12.5%. The stock has gained 40.7% in the last six months.
IDEXX has a long-term expected earnings growth rate of 19.8%. The stock has gained around 4.7% in the last six years.
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