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Here's Why You Should Invest in Teleflex (TFX) Stock Now

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Teleflex, Inc. (TFX - Free Report) is enjoying high investors’ optimism, courtesy of recent NeoTract acquisition and strong business in Asian markets.

The company has outperformed its industry in the past year. The stock has improved 13%, against the industry’s 3.2% fall and the S&P 500 composite’s 2.2% increase.

The provider of medical technology products has a market cap of $14.81 billion. The company primarily designs, develops, manufactures as well as supplies single-use medical devices used by hospitals and healthcare providers for common diagnostic and therapeutic procedures in critical care and surgical applications.

Banking on solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment. You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

NeoTract Inclusion an Upside: NeoTract — the acquired business of Teleflex — has already started to contribute to the top line. For the full year, this business is expected to register 30% growth on NeoTract. The business’ FDA-cleared UroLift System witnessed increased adoption in the first quarter.


 

Vascular Solution Synergy Continues: The acquisition of Vascular Solutions (acquired in February 2017) has already started to accelerate growth of Teleflex’s vascular and interventional access product portfolios through expansion into the coronary and peripheral vascular market. The portfolios are also being driven by higher cross-portfolio selling opportunities.

Business in Asia Grows Strong: Observing strong demand for the company’s wide product line in emerging economies, Teleflex is currently focusing on expansion in densely populated geographies like Asia. During the last reported quarter, Asia generated double-digit year-over-year growth at CER on strong rollout of the company’s Vascular, Interventional Access and Surgical products. From a geographical perspective, business in China registered solid growth. Moreover,  the company witnessed strength in Korea and Southeast Asia.

Which Way are Estimates Treading?

For the second quarter of 2019, the Zacks Consensus Estimate for earnings is pegged at $2.59, which indicates 4.9% fall from the year-ago quarter’s figure. The same for revenues is pegged at $636.7 million, calling for year-over-year growth of 4.4% from the prior-year quarter’s number.

For 2019, the Zacks Consensus Estimate for earnings is pegged at $11.1, suggesting 11.6% year-over-year growth. The same for revenues is pegged at $2.58 billion, suggesting 5.6% rise from the prior-year quarter’s level.

Zacks Rank and Key Picks

Some other top-ranked stocks in the broader medical space are Cerner Corporation , Penumbra (PEN - Free Report) and Bruker Corporation (BRKR - Free Report) . Each of these stocks carry a Zacks Rank #2.

Cerner’s long-term earnings growth rate is expected to be 13.5%.

Penumbra’s long-term earnings growth rate is projected at 21.5%.

Bruker’s long-term earnings growth rate is estimated at 11.7%.

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