In the latest trading session, Abiomed (ABMD - Free Report) closed at $283.05, marking a -0.66% move from the previous day. This change lagged the S&P 500's 0.21% gain on the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the maker of heart devices had lost 10.35% in the past month. In that same time, the Medical sector lost 0.07%, while the S&P 500 gained 2.57%.
Investors will be hoping for strength from ABMD as it approaches its next earnings release. The company is expected to report EPS of $1.07, up 33.75% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $216.43 million, up 24.07% from the prior-year quarter.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 currently a Zacks Rank #2 (Buy).
In terms of valuation, ABMD is currently trading at a Forward P/E ratio of 57.71. This valuation marks a premium compared to its industry's average Forward P/E of 31.89.
Also, we should mention that ABMD has a PEG ratio of 2.09. 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. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.6 based on yesterday's closing prices.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% 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.