Inogen Inc. INGN is currently a top performer in the MedTech space. Improved price performance and strong fundamentals instill investors’ optimism in the stock. It’s time you take advantage of the stock price appreciation.
Further, the company’s shares have surged 109.8% against the industry’s decline of 10.8% in a year’s time. The current level is also higher than the S&P 500 index’s return of 14.4%.
The Zacks Consensus Estimate for revenues for the current year is pegged at $322.1 million, indicating growth of 29.1%. The Zacks Consensus Estimate for full-year earnings is pegged at $1.77, showing rise of 35.1%. The company sports a Zacks Rank #1 (Strong Buy), which indicates possibility of outperformance in the near term.
Let’s find out whether the bullish trend can sustain the stock’s impressive performance in the long run:
Inogen, Inc Price and Consensus
Europe in Focus
Inogen confirmed that its outlook for European sales in 2018 is optimistic. The company expects tender activity to increase in the region and its partners to continue to adopt portable oxygen concentrators. In fact, management expects to witness a large long-term opportunity ahead, courtesy of the market transitions from tank and liquid oxygen systems to non-delivery solutions.
Further, in support of its European customers, the company initiated the production of Inogen One G3 concentrators in 2017 using a contract manufacturer, Foxconn, in the Czech Republic. In 2018, the company expects Foxconn to produce the vast majority of the Inogen One G3 concentrators to meet the European demand.
In the first quarter of 2018, Europe represented 89.5% of international sales, up from 73.2% in the year-ago quarter. The company’s European partners significantly contributed to business-to-business sales.
The company expects to see modest growth in international sales in the rest of 2018 and maintain focus on Europe.
Notably, Foxconn has been producing the G3 products to cater to the European demand. This has also led to the signing of an additional lease for 23,000 toward fee increased footprint, which provides scope for expansion.
Buoyed by impressive first-quarter results, Inogen raised outlook for 2018. The company projects revenues in the range of $310-$320 million, indicating growth of 24.3-28.3% on a year-over-year basis.
Direct-to-consumer is expected to be the fastest growing channel for the company.
Net income guidance for 2018 is projected in the range of $38-$41 million, up from $36-$39 million and representing growth of 80.9-95.2% year over year.
Impressive Product Portfolio
Inogen’s expanding product portfolio is a key catalyst. The company provides oxygen concentrator solutions for portable and stationary use. Inogen’s flagship product, One G4, is a single-solution portable oxygen concentrator (POC).
Further, Inogen One G3 portable oxygen concentrator provides mobility and independence to oxygen therapy users. This platform is the lightest continuous flow oxygen concentrator in the market and consumes much less power than its competitive devices.
A few better-ranked stocks in the broader medical space are Genomic Health , Abiomed ABMD and Stryker Corporation SYK.
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.
Abiomed has a projected long-term earnings growth rate of 27%. The stock sports a Zacks Rank #1.
Stryker has a projected long-term earnings growth rate of 9.7%. The stock carries a Zacks Rank #2 (Buy).
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