Abiomed (ABMD - Free Report) closed at $318.42 in the latest trading session, marking a +1.15% move from the prior day. This move outpaced the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.08%.
Prior to today's trading, shares of the maker of heart devices had lost 2.74% over the past month. This has was narrower than the Medical sector's loss of 4.78% and the S&P 500's loss of 3.04% in that time.
Investors will be hoping for strength from ABMD as it approaches its next earnings release, which is expected to be February 7, 2019. The company is expected to report EPS of $0.93, up 32.86% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $194.88 million, up 26.53% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.04 per share and revenue of $771.16 million. These totals would mark changes of +105.71% and +29.88%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ABMD. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. ABMD is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that ABMD has a Forward P/E ratio of 62.49 right now. This represents a premium compared to its industry's average Forward P/E of 30.56.
It is also worth noting that ABMD currently has a PEG ratio of 1.82. 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. ABMD's industry had an average PEG ratio of 2.23 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.