Back to top

Here's Why You Should Invest in Merit Medical (MMSI) Now

Read MoreHide Full Article

Merit Medical Systems, Inc. (MMSI - Free Report) is one of the top-performing stocks in the MedTech space. A strong outlook for 2018 and a solid global foothold currently favor the stock.

Price Performance

In a year’s time, shares of this Zacks Rank #2 (Buy) company have rallied 31.9% compared with the industry’s 0.4% rise and the S&P 500 index’s 2.6% gain.

Let us take a quick look at the factors that make Merit Medical a solid pick for now.

What Makes Merit Medical an Attractive Pick?

Strong Outlook

For 2018, Merit Medical expects revenues in the band of $870-$880 million.

Adjusted earnings per share are expected between $1.60 and $1.70.

The company expects adjusted gross margins within 48.9-49.4%.

Global Foothold

In the recently reported third quarter of 2018, Merit Medical received a number of orders from the Middle East for its flagship products. Per management, the company foresees an opportunity worth $6.75 million.

Additionally, Merit Medical eyes a global pipeline for Europe, Asia and South-East Asia.

Regulatory Approvals

Merit Medical’s Prelude Ideal product recently received an FDA nod. Notably, Prelude is a unique vascular sheath, which currently is much in demand. Additionally, the company recently received a 510(k) for a distal access SYNC and the Merit Pursue Microcatheter.

Which Way Are Estimates Headed?

For the fourth quarter, the Zacks Consensus Estimate for earnings is pegged at 45 cents, reflecting year-over-year growth of 36.4%. The same for revenues stands at $227 million, mirroring 18.9% improvement year over year.

For 2018, the Zacks Consensus Estimate for earnings is pinned at $1.66, mirroring 29.7% growth from the year-earlier number. For revenues, the same is pegged at $875.5 million, indicating a 20.3% rise.

Bottom Line

Merit Medical has a Growth Score of A, courtesy of its solid prospects. This, in turn, reflects possibilities of outperformance over the long haul. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 are better picks than most.

Other Key Picks

Other top-ranked stocks in the broader medical space are Integer Holdings Corporation (ITGR - Free Report) , Surmodics, Inc. (SRDX - Free Report) and Veeva Systems (VEEV - Free Report) .

Integer Holdings has an earnings growth rate of 31.2% for the next quarter and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Surmodics’ long-term earnings growth rate is projected at 10%. The stock carries a Zacks Rank of 2.

Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock carries a Zacks Rank #2.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>



More from Zacks Analyst Blog

You May Like