Edwards Lifesciences Corporation (EW - Free Report) has been gaining investor confidence on consistently positive results. Over the past six months, the stock has gained 21.8% against its industry’s 17.8% decline. Also, the company has outperformed the S&P 500’s 0.7% increase.
This manufacturer of tissue heart valves and repair products used to replace or repair a patient's diseased or defective heart valve has a market cap of $30.49 billion. The company’s historical five-year growth rate is favorable at 23.4% compared with the industry’s 14.7%.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
Per our Style Score, Edwards Lifesciences has a Growth Score of B, which is reflective of the company’s strong prospects. Our research shows that stocks with a Growth Style Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Let’s find out whether the recent positive trend is a sustainable one.
Impressive Long-term Growth Strategy
Last December, Edwards Lifesciences announced an outlook focused on long-term growth and technology pipeline. In THV, Edwards Lifesciences expects to maintain its leadership position in the global TAVR market through enhancing focus on expanding patient access, actively leveraging current valve platforms for additional indications, developing next-generation valve platforms and maintaining trusted relationships with clinicians, payers and regulators.
Over the long term, Edwards Lifesciences expects to generate organic underlying sales growth at a meaningfully higher rate than the industry average. On the margin front, the company anticipates moderate expansion in gross margin on an improving mix, partially offset by capacity investments.
Solid Global Prospects
We believe that the huge untapped potential in emerging markets is likely to act as a positive catalyst for Edwards Lifesciences. Management is striving to strengthen its foothold in the markets of Asia, especially Japan. Management continues to believe that Japan holds immense prospects for business expansion among the major emerging nations.
Since the launch of its SAPIEN 3 valve in Japan in 2016, Edwards Lifesciences gas seen strong adoption of the device across the nation. The company is looking forward to the launch of its INSPIRIS RESILIA aortic valve in 2018 in Japan.
Product Pipeline Development on Track
We are encouraged by Edwards Lifesciences’ focus on building its pipeline that should strengthen its foothold across all operating businesses. The company also witnessed growth across its emerging portfolio of mitral and tricuspid repair therapies.
Per the latest developments, Edwards Lifesciences recently announced a clinical trial of SAPIEN 3 Ultra system. Management expects to receive CE Mark for the Ultra system in the second half of 2018. Moreover, Edwards Lifesciences’ new Ultra System, including an on-balloon delivery system and next-generation sheath technology, is expected to be available in the United States by late-2018.
Other Key Picks
Some other top-ranked stocks in the broader medical space are Genomic Health (GHDX - Free Report) , Align Technology, Inc. (ALGN - Free Report) and Stryker Corporation (SYK - Free Report) .
Genomic Health has an expected earnings growth rate of 187.5% for the current quarter. The stock sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology has a projected long-term earnings growth rate of 28.4% and a Zacks Rank of 2.
Stryker has a projected long-term earnings growth rate of 9.7%. The stock carries a Zacks Rank of 2.
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