Abiomed, Inc. (ABMD - Free Report) is currently a top performer in the MedTech space. Improved price performance and strong fundamentals instill investors’ confidence in the stock. Therefore, its time you advantage from the stock price appreciation.
Since its earnings report on May 3, Abiomed’s stock has rallied 20.9% to $405.67. Further, shares have risen a whopping 185.4%, significantly outperforming the industry’s decline of 1.8% in a year’s time. The current level is also higher than the S&P 500 index’s return of 12.9%.
In the last 60 days, the Zacks Consensus Estimate for earnings rose 1.3% to 80 cents. The company has a Zacks Rank #1 (Strong Buy), which indicates possibility of outperformance in the near term.
Furthermore, the stock has a Growth Score of B. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy) are better picks than most.
Let’s find out whether the bullish trend can sustain the stock’s impressive performance in the long run.
What Makes It an Attractive Pick
The S&P 500 Benchmark
Abiomed recently joined the coveted S&P 500 benchmark, replacing Wyndham Worldwide Corp. Abiomed currently has a market capitalization of $18.05 billion cements its position on the S&P 500.Further, the company’s strong fundamentals, adequate liquidity, reasonable price and sector representation have lent it a competitive edge in the U.S. MedTech industry. (Read more: Abiomed to Replace Wyndham in the S&P 500 Benchmark)
Impella: A Solid Driver
Abiomed’s flagship product line, Impella, continues to be a growth driver. In the last reported quarter, the company witnessed increased adoption of Impella products in the United States, Germany and Japan.
The company’s flagship Impella RP has seen 48 launches in new U.S. sites since its introduction. Recently, Impella 2.5 was used to treat a 68-year old cardiac patient at Mitsui Memorial Hospital, one of the leading cardiovascular centers in Japan.
Abiomed recently announced the receipt of FDA Pre-Market Approval along with SmartAssist. Moreover, the recent CE mark for the Impella 5.5 in Europe enhanced the product line significantly and enabled the company to advance in the field of heart recovery.
FY19 View Impressive
For fiscal 2019, the company expects total revenues in the range of $740-$770 million, reflecting an increase of 25% to 30% over the prior fiscal. Notably, the Zacks Consensus Estimate for revenues is pegged at $763.3 million, which lies within the projected range.
Full-year tax rate is expected between 28% and 30%.
Other Key Picks
Some other top-ranked medical stocks are Varian Medical (VAR - Free Report) , Stryker Corporation (SYK - Free Report) and Intuitive Surgical Inc. (ISRG - Free Report) .
Intuitive Surgical has an expected long-term earnings growth rate of 12.1%. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stryker has a projected long-term earnings growth rate of 9.8%. The stock carries a Zacks Rank #2.
Varian Medical has a projected long-term earnings growth rate of 8%. The stock carries a Zacks Rank #1.
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