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Is it Apt to Hold Edwards Lifesciences Stock in Your Portfolio Now?

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Key Takeaways

  • EW is seeing strong adoption of its TAVR platform, with 10.6% year-over-year growth in the third quarter.
  • EW's TMTT segment posted 53% sales growth, driven by expanding use of PASCAL and EVOQUE systems.
  • EW faces margin pressure from inflation, staffing shortages and unfavorable foreign exchange movements.

Edwards Lifesciences (EW - Free Report) is well-poised to grow in the coming quarters owing to the strong adoption of its premium surgical technologies worldwide. The Transcatheter Mitral and Tricuspid Therapies (“TMTT”) business has seen consistent growth over the past few quarters, with Edwards efficiently scaling its fast-growing businesses. On top of that, the company’s Transcatheter Aortic Valve Replacement (“TAVR”) platform is positioned for continued global leadership and strong, sustainable growth. Meanwhile, macroeconomic challenges and currency fluctuations raise concerns for Edwards’ operations.

In the past year, this Zacks Rank #3 (Hold) stock has gained 19.3% compared with the 1.5% growth of the industry. Meanwhile, the S&P 500 composite has risen 19.8% during the same period.

The renowned global medical device company has a market capitalization of $48.17 billion. The company’s earnings yield of 3.5% favorably compares with the industry’s 0.6% yield. Edwards’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.9%.

Let’s delve deeper.

Upsides for EW Stock

Surgical Structural Heart, a Promising Business: The business pioneered the innovative RESILIA tissue, which is backed by more than 40 years of the company’s tissue technology leadership. The wealth of data generated from the COMMENCE aortic and mitral trials, studying the safety and effectiveness of bioprosthetic valves made with RESILIA tissue, continues to support the strong momentum of the portfolio globally. In the third quarter of 2025, the segment grew 5.3% from the prior-year level, driven by strong global adoption of Edwards’ premium resilient technologies, including INSPIRIS, MITRIS and KONECT.

The company continues to see positive procedure growth globally for the many patients treated surgically, including those undergoing complex procedures. Meanwhile, in the past few quarters, Edwards has made progress in advancing important innovations worldwide, including the CE Mark approval for KONECT in Europe and the launch of MITRIS in China.

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TAVR Holds Potential: The company’s TAVR platform is positioned for continued global leadership and strong, sustainable growth. This is expected to be propelled by greater awareness, patient activation, advances in new technologies such as RESILIA, as well as indication expansion and increased global adoption. The business closed the third quarter of 2025 with 10.6% year-over-year growth. Edwards' strong competitive position and pricing remained stable globally. In Japan, TAVR sales growth continued to improve, reflecting a gradual recovery in market growth.

In May 2025, the company received FDA approval for its SAPIEN 3 platform for severe aortic stenosis (AS) patients without symptoms, marking the first FDA approval for TAVR in asymptomatic patients. At TCT 2025 in October, seven-year PARTNER 3 data on SAPIEN 3 showed that the valve, which demonstrated superiority at one year, also delivers outcomes comparable to surgery at seven years. Also, at the New York Valve conference, Edwards unveiled 10-year outcomes from the PARTNER II study, underscoring the excellent long-term outcomes and durability of the SAPIEN 3 platform.

TMTT Portfolio Looks Robust: Backed by the insights gained from clinical trials and real-world experiences, the company constructed a strategic portfolio of leading transcatheter technologies to provide both repair and replacement solutions for mitral and tricuspid patients. In the third quarter, the segment witnessed a 53% increase in sales compared to the prior year, driven by the strong performance of both PASCAL and EVOQUE systems globally.

The adoption of differentiated PASCAL technology is expanding in both new and existing sites worldwide. Meanwhile, Edwards is making strides with the EVOQUE commercial rollout, successfully activating new sites in both the United States and Europe (other than initial trial centers). Also, under the finalized NCD, EVOQUE became eligible for all Medicare beneficiaries for the treatment of symptomatic tricuspid regurgitation in March. The SAPIEN M3 mitral valve replacement system also received CE Mark for the transcatheter treatment of patients with symptomatic mitral regurgitation who are unsuitable for surgery or transcatheter edge-to-edge therapy.

Concerns for Edwards

Macro Concerns Put Pressure on the Bottom Line: Edwards’ extensive global operations and overseas manufacturing facilities and suppliers bring certain financial, economic, political and other risks. The industrywide increase in inflationary pressure, supply constraints stemming from geopolitical complications and regulatory changes are weighing heavily on the company’s operating results. The business is also currently experiencing staffing shortages within the hospital systems, putting significant pressure on Edwards’ margins.

Foreign Exchange Headwinds: Foreign exchange is a major headwind for Edwards due to a considerable percentage of its revenues coming from outside the United States (in 2024, 41% of the company’s net sales were derived from international regions). We remain worried about the significant challenges Edward Lifesciences had to face owing to the unfavorable foreign currency impact that has been adversely affecting the company’s gross margin over the past few quarters.

EW Stock Estimate Trend

The Zacks Consensus Estimate for Edwards’ 2025 earnings per share (EPS) has remained constant at $2.59 in the past 30 days.

The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $6.03 billion, suggesting a 1% improvement from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Phibro Animal Health (PAHC - Free Report) , Boston Scientific (BSX - Free Report) and Envista (NVST - Free Report) .

Phibro Animal Health has an earnings yield of 6.9% compared with the industry’s 2.8% yield. Shares of the company have surged 93.1% in the past year against the industry’s 4.4% fall. PAHC’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.8%.

PAHC carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Boston Scientific, carrying a Zacks Rank #2,has an estimated long-term earnings growth rate of 16.4% compared with the industry’s 13.9% growth. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 7.4%. BSX shares have declined 2.9% compared with the industry’s 4.3% fall in the past year.

Envista, carrying a Zacks Rank #2, has an earnings yield of 5.4% compared with the industry’s 2.8% yield. Shares of the company have jumped 21.2% against the industry’s 4.3% fall. NVST’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 12.8%.  

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