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Abiomed (ABMD) Gains But Lags Market: What You Should Know

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Abiomed (ABMD - Free Report) closed at $349.37 in the latest trading session, marking a +0.25% move from the prior day. This move lagged the S&P 500's daily gain of 0.85%. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 1.29%.

Prior to today's trading, shares of the maker of heart devices had gained 10.4% over the past month. This has outpaced the Medical sector's gain of 9.03% and lagged the S&P 500's gain of 12.44% 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. On that day, ABMD is projected to report earnings of $0.94 per share, which would represent year-over-year growth of 34.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $200.60 million, up 30.24% from the year-ago period.

ABMD's full-year Zacks Consensus Estimates are calling for earnings of $5.05 per share and revenue of $771.35 million. These results would represent year-over-year changes of +106.12% and +29.91%, respectively.

Investors should also note any recent changes to analyst estimates for ABMD. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 has moved 0.16% higher. ABMD is currently sporting a Zacks Rank of #2 (Buy).

Investors should also note ABMD's current valuation metrics, including its Forward P/E ratio of 69.04. Its industry sports an average Forward P/E of 32.49, so we one might conclude that ABMD is trading at a premium comparatively.

Also, we should mention that ABMD has a PEG ratio of 2.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Instruments industry currently 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 61, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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