Back to top

Abiomed (ABMD) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

Abiomed (ABMD - Free Report) closed at $323.76 in the latest trading session, marking a +1.43% move from the prior day. This move outpaced the S&P 500's daily gain of 0.3%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, added 0.44%.

Coming into today, shares of the maker of heart devices had lost 10.06% in the past month. In that same time, the Medical sector gained 2.07%, while the S&P 500 gained 2.91%.

ABMD will be looking to display strength as it nears its next earnings release. In that report, analysts expect ABMD to post earnings of $1.07 per share. This would mark year-over-year growth of 33.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $216.43 million, up 24.07% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.05 per share and revenue of $778.28 million. These totals would mark changes of +106.12% and +31.08%, respectively, from last year.

Any recent changes to analyst estimates for ABMD should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 63.19. This represents a premium compared to its industry's average Forward P/E of 34.37.

We can also see that ABMD currently has a PEG ratio of 2.28. 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 2.59 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


ABIOMED, Inc. (ABMD) - free report >>

Published in