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

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Abiomed closed at $318.17 in the latest trading session, marking a +0.79% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.12%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq added 0.08%.

Coming into today, shares of the maker of heart devices had lost 4.92% in the past month. In that same time, the Medical sector lost 6.93%, while the S&P 500 lost 6.96%.

ABMD will be looking to display strength as it nears its next earnings release, which is expected to be February 7, 2019. In that report, analysts expect ABMD to post earnings of $0.93 per share. This would mark year-over-year growth of 32.86%. Meanwhile, our latest consensus estimate is calling for revenue of $194.88 million, up 26.53% from the prior-year quarter.

ABMD's full-year Zacks Consensus Estimates are calling for earnings of $5.04 per share and revenue of $771.16 million. These results would represent year-over-year changes of +105.71% and +29.88%, respectively.

Any recent changes to analyst estimates for ABMD should also be noted by investors. These revisions help to show the ever-changing nature of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ABMD is currently a Zacks Rank #2 (Buy).

Digging into valuation, ABMD currently has a Forward P/E ratio of 62.66. This valuation marks a premium compared to its industry's average Forward P/E of 30.09.

Meanwhile, ABMD's PEG ratio is currently 1.83. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ABMD's industry had an average PEG ratio of 2.38 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 69, putting it in the top 27% 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.

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

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