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Here's Why You Should Invest in CONMED (CNMD) Stock Now
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CONMED Corporation (CNMD - Free Report) is well poised for growth backed by broad product portfolio, strong international sales and solid gains from its core units — Orthopedic Surgery and General Surgery.
The stock currently carries a Zacks Rank #2 (Buy).
Price Performance
Shares of CONMED have gained 34.6%, outperforming the industry’s growth of 18.4% on a year-to-date basis. The stock also outpaced the S&P 500 Index’s rally of 17.3%.
What’s Favoring the Stock?
CONMED’s General Surgery segment’s sustained solid performance continues to bolster the top line. The company’s unique products and solutions within this segment provide it competitive edge in the MedTech space. Of the most unique products under General Surgery, the Anchor Tissue Retrieval bag deserves a mention.
Moreover, CONMED boasts a broad product portfolio that enables it to accelerate top-line growth over a considerable period. Additionally, product innovations will not only fortify its product portfolio but also enhance overall performance.
Further, the company’s continued focus on Research and Development (R&D) helps in instilling investor confidence. Looking forward, CONMED’s management confirmed that it will continue to increase investments in R&D, which is likely to be 4.5-5% of net sales in 2019.
The company is reaping benefits from the increasing trend of utilizing minimally invasive techniques as a substantial percentage of its products were created for these procedures.
In fact, a research report by Allied Market Research suggests that the global minimally invasive surgical instruments market is estimated to reach $52.98 billion by 2023 at a CAGR of 8.7% from 2017 to 2023. We believe solid market trends like these would fortify CONMED’s foothold in the niche space.
Notably, a raised 2019 outlook buoys optimism for the stock.
Which Way are Estimates Headed?
For 2019, the Zacks Consensus Estimate for revenues is pegged at $945.2 million, indicating an improvement of 9.9% from the year-ago quarter. The same for earnings stands at $2.50, suggesting growth of 14.7% from the year-ago reported figure.
Biolase has a long-term earnings growth rate of 15%.
Oxford Immunotec has a long-term earnings growth rate of 25%.
Haemonetics has a long-term earnings growth rate 13.5%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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Here's Why You Should Invest in CONMED (CNMD) Stock Now
CONMED Corporation (CNMD - Free Report) is well poised for growth backed by broad product portfolio, strong international sales and solid gains from its core units — Orthopedic Surgery and General Surgery.
The stock currently carries a Zacks Rank #2 (Buy).
Price Performance
Shares of CONMED have gained 34.6%, outperforming the industry’s growth of 18.4% on a year-to-date basis. The stock also outpaced the S&P 500 Index’s rally of 17.3%.
What’s Favoring the Stock?
CONMED’s General Surgery segment’s sustained solid performance continues to bolster the top line. The company’s unique products and solutions within this segment provide it competitive edge in the MedTech space. Of the most unique products under General Surgery, the Anchor Tissue Retrieval bag deserves a mention.
Moreover, CONMED boasts a broad product portfolio that enables it to accelerate top-line growth over a considerable period. Additionally, product innovations will not only fortify its product portfolio but also enhance overall performance.
Further, the company’s continued focus on Research and Development (R&D) helps in instilling investor confidence. Looking forward, CONMED’s management confirmed that it will continue to increase investments in R&D, which is likely to be 4.5-5% of net sales in 2019.
The company is reaping benefits from the increasing trend of utilizing minimally invasive techniques as a substantial percentage of its products were created for these procedures.
In fact, a research report by Allied Market Research suggests that the global minimally invasive surgical instruments market is estimated to reach $52.98 billion by 2023 at a CAGR of 8.7% from 2017 to 2023. We believe solid market trends like these would fortify CONMED’s foothold in the niche space.
Notably, a raised 2019 outlook buoys optimism for the stock.
Which Way are Estimates Headed?
For 2019, the Zacks Consensus Estimate for revenues is pegged at $945.2 million, indicating an improvement of 9.9% from the year-ago quarter. The same for earnings stands at $2.50, suggesting growth of 14.7% from the year-ago reported figure.
Other Key Picks
Some other top-ranked stocks from the broader medical space are Biolase, Inc. (BIO - Free Report) , Oxford Immunotec Global PLC and Haemonetics Corporation (HAE - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Biolase has a long-term earnings growth rate of 15%.
Oxford Immunotec has a long-term earnings growth rate of 25%.
Haemonetics has a long-term earnings growth rate 13.5%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>