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Abiomed (ABMD) Stock Sinks As Market Gains: What You Should Know

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Abiomed (ABMD - Free Report) closed at $301.60 in the latest trading session, marking a -0.23% move from the prior day. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow 0%, and the Nasdaq, a tech-heavy index, added 0.92%.

Heading into today, shares of the maker of heart devices had lost 14.49% over the past month, lagging the Medical sector's loss of 2.5% and the S&P 500's loss of 4.06% in that time.

ABMD will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $0.94, up 34.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $195.18 million, up 26.72% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.97 per share and revenue of $770.45 million. These totals would mark changes of +102.86% and +29.76%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for ABMD. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.93% higher. ABMD is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, ABMD currently has a Forward P/E ratio of 60.68. Its industry sports an average Forward P/E of 32.04, so we one might conclude that ABMD is trading at a premium comparatively.

We can also see that ABMD currently has a PEG ratio of 1.77. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Instruments was holding an average PEG ratio of 2.43 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 86, putting it in the top 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ABMD in the coming trading sessions, be sure to utilize Zacks.com.




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