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Edwards Lifesciences Pipeline Impressive, Currency Woes Stay

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On Sep 26, we issued an updated research report on Edwards Lifesciences Corporation (EW - Free Report) . The stock currently carries a Zacks Rank #3 (Hold).

Over the last six months, this leading molecular diagnostic company has been trading above the broader industry. The stock has gained 15.3% in this period, higher than the broader industry’s 11.5% gain. The recent FDA approvals for several products including SAPIEN 3 THV for valve-in-valve procedures and INSPIRIS RESILIA aortic valve seem to be bolstering investors’ confidence on the stock. 

Also, the raised guidance for 2017 hints at brighter prospects. In fact, the outlook raise was backed by strong performance of all of the company’s three product lines.

 

We are encouraged by the company’s long-term growth strategies and recent progress in its technology pipeline. As far as transcatheter heart valve (THV) is concerned, Edwards Lifesciences expects to maintain its leadership position in the global Transcatheter Aortic Valve Replacement (TAVR) market.

Also, the company’s focus on building its pipeline to strengthen its foothold across all operating businesses bodes well. Edwards Lifesciences has also witnessed growth in its emerging portfolio of mitral and tricuspid repair therapies.

On the flip side, foreign exchange headwinds continue to mar the company’s international business. Also, a competitive landscape in the overseas market weighs on the company’s prospects.

Key Picks

A few better-ranked medical stocks in the medical sector are Orthofix International N.V. (OFIX - Free Report) , Owens & Minor, Inc. (OMI - Free Report) and OraSure Technologies, Inc. (OSUR - Free Report) . Orthofix International and Owens & Minor sport a Zacks Rank #1 (Strong Buy), while OraSure Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Orthofix International has a long-term expected earnings growth rate of 11.8%. The stock has rallied roughly 3% over the last three months.

Owens & Minor has a long-term expected earnings growth rate of 5%. The stock has gained 4.4% over the last month.

OraSure Technologies has a long-term expected earnings growth rate of 16%. The stock has gained 9.1% over the last month.

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