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Edwards Lifesciences (EW) Stock Sinks As Market Gains: What You Should Know

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Edwards Lifesciences (EW - Free Report) closed at $149.75 in the latest trading session, marking a -1.99% move from the prior day. This move lagged the S&P 500's daily gain of 0.56%. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, lost 0.38%.

Prior to today's trading, shares of the medical device maker had lost 0.09% over the past month. This has was narrower than the Medical sector's loss of 6.31% and the S&P 500's loss of 6.76% in that time.

EW will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. On that day, EW is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 24.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $974.38 million, up 9.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.69 per share and revenue of $3.79 billion, which would represent changes of +23.42% and +10.21%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for EW. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.39% higher. EW is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, EW is currently trading at a Forward P/E ratio of 32.55. This valuation marks a premium compared to its industry's average Forward P/E of 31.97.

We can also see that EW currently has a PEG ratio of 2.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EW's industry had an average PEG ratio of 2.7 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 92, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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