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IRadimed (IRMD) Hits 52-Week High: What's Driving the Stock?
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IRadimed Corporation (IRMD - Free Report) scaled a fresh 52-week high of $15.75 on Dec 26, closing nominally lower at $15.70. The company has rallied 32.5% over the last year, much higher than the S&P 500’s gain of 18.6%.
It has also outperformed the broader industry’s gain of 20.5% with respect to share price performance during the same time frame. The stock has a market cap of $165.7 million. Taking the stable stock performance into consideration, we expect iRadimed Corporation to scale higher in the coming quarters.
Growth Drivers
Market Prospects
IRadimed Corporation engages in developing, manufacturing, marketing, and distributing magnetic resonance imaging (MRI) compatible products. According to a report by Markets and Markets, the global magnetic resonance imaging systems market is estimated to reach $7.19 billion by 2021, at a CAGR of 5.1% from 2016 to 2021. Taking this into consideration, we believe the company has bountiful opportunities in this niche space.
Solid Fundamental Growth Story
The robust fundamentals of the company hold promise. The company’s revenues witnessed a CAGR of 42.8% from 2013 to 2016 and its adjusted earnings per share grew at a CAGR of 38.4% during the same time frame. It also has a trailing four-quarter average positive earnings surprise of a whopping 337.5%.
Upbeat Guidance
The market is upbeat about IRadimed’s solid guidance, where the company now expects to report full-year 2017 non-GAAP diluted earnings per share of 17-18 cents compared to its previous estimate of 10-13 cents.
The company estimates revenues in the range of $6.3-$6.7 million and non-GAAP diluted earnings per share of 5-6 cents in fourth-quarter 2017.
Favorable Tiding on the Regulatory Front
The company has also won the FDA nod for its 3880 Magnetic Resonance Imaging (“MRI”) compatible patient vital signs monitoring system. The IRADIMED 3880 MRI compatible patient vital signs monitoring system has been designed with non-magnetic components and other special features in order to safely and accurately monitor a patient’s vital signs during various MRI procedures.
With this FDA clearance, management believes the company’s revenues could be significantly higher in 2018 and might continue to escalate further into 2019 as well.
Zacks Rank & Key Picks
IRadimed currently carries a Zacks Rank #3 (Hold).
Bruker has a long-term expected earnings growth rate of 9.9%. The stock has rallied roughly 57.3% over a year.
Amedisys has a long-term expected earnings growth rate of 18.5%. The stock has gained 22.3% in a year.
Chemed has a long-term expected earnings growth rate of 10%. The stock has soared 50.5% in a year’s time.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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IRadimed (IRMD) Hits 52-Week High: What's Driving the Stock?
IRadimed Corporation (IRMD - Free Report) scaled a fresh 52-week high of $15.75 on Dec 26, closing nominally lower at $15.70. The company has rallied 32.5% over the last year, much higher than the S&P 500’s gain of 18.6%.
It has also outperformed the broader industry’s gain of 20.5% with respect to share price performance during the same time frame. The stock has a market cap of $165.7 million. Taking the stable stock performance into consideration, we expect iRadimed Corporation to scale higher in the coming quarters.
Growth Drivers
Market Prospects
IRadimed Corporation engages in developing, manufacturing, marketing, and distributing magnetic resonance imaging (MRI) compatible products. According to a report by Markets and Markets, the global magnetic resonance imaging systems market is estimated to reach $7.19 billion by 2021, at a CAGR of 5.1% from 2016 to 2021. Taking this into consideration, we believe the company has bountiful opportunities in this niche space.
Solid Fundamental Growth Story
The robust fundamentals of the company hold promise. The company’s revenues witnessed a CAGR of 42.8% from 2013 to 2016 and its adjusted earnings per share grew at a CAGR of 38.4% during the same time frame. It also has a trailing four-quarter average positive earnings surprise of a whopping 337.5%.
Upbeat Guidance
The market is upbeat about IRadimed’s solid guidance, where the company now expects to report full-year 2017 non-GAAP diluted earnings per share of 17-18 cents compared to its previous estimate of 10-13 cents.
The company estimates revenues in the range of $6.3-$6.7 million and non-GAAP diluted earnings per share of 5-6 cents in fourth-quarter 2017.
Favorable Tiding on the Regulatory Front
The company has also won the FDA nod for its 3880 Magnetic Resonance Imaging (“MRI”) compatible patient vital signs monitoring system. The IRADIMED 3880 MRI compatible patient vital signs monitoring system has been designed with non-magnetic components and other special features in order to safely and accurately monitor a patient’s vital signs during various MRI procedures.
With this FDA clearance, management believes the company’s revenues could be significantly higher in 2018 and might continue to escalate further into 2019 as well.
Zacks Rank & Key Picks
IRadimed currently carries a Zacks Rank #3 (Hold).
Some better-ranked medical stocks are Bruker Corporation (BRKR - Free Report) , Amedisys, Inc. (AMED - Free Report) and Chemed Corporation (CHE - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bruker has a long-term expected earnings growth rate of 9.9%. The stock has rallied roughly 57.3% over a year.
Amedisys has a long-term expected earnings growth rate of 18.5%. The stock has gained 22.3% in a year.
Chemed has a long-term expected earnings growth rate of 10%. The stock has soared 50.5% in a year’s time.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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