Abiomed (ABMD - Free Report) closed the most recent trading day at $324.13, moving -0.45% from the previous trading session. This change lagged the S&P 500's daily gain of 0.22%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.16%.
Heading into today, shares of the maker of heart devices had gained 6.83% over the past month, outpacing the Medical sector's loss of 0.84% and the S&P 500's gain of 0.49% in that time.
ABMD will be looking to display strength as it nears its next earnings release, which is expected to be January 31, 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%.
ABMD's full-year Zacks Consensus Estimates are calling for earnings of $5.04 per share and revenue of $768.71 million. These results would represent year-over-year changes of +105.71% and +29.47%, respectively.
It is also important to note the recent changes to analyst estimates for ABMD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ABMD is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that ABMD has a Forward P/E ratio of 64.64 right now. This valuation marks a premium compared to its industry's average Forward P/E of 31.44.
Meanwhile, ABMD's PEG ratio is currently 1.88. 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 2.48 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 97, putting it in the top 38% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.