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.
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?
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%.
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.
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.
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.
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