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Zynex (ZYXI) Scales 52-Week High: What's Driving the Stock?

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Shares of Zynex Inc. (ZYXI - Free Report) reached a 52-week high of $11.89 on Oct 3, closing the session marginally lower at $11.80.

In the past year, shares of Zynex have rallied 300% against the industry’s fall of 0.3%. The company’s current level is higher than the S&P 500 index’s decline of 0.1%.

Zynex, being a player in providing electrotherapy, cardiac monitoring and neurology products, is expected to scale new highs in the near term. It has average positive earnings surprise of 13.6% in the trailing four quarters.

 


The estimate revision trend for the current year is impressive as well. In the past 90 days, the Zacks Consensus Estimate for the company’s earnings per share has been raised to 35 cents from 33 cents, an improvement of 6.1%.

It currently carries a Zacks Rank #3 (Hold).

Factors Driving Zynex

Robust Growth: The company is consistently witnessing robust order growth, on aggressively strong performance of its sales force. It expects to hold on to this momentum for the rest of the financial year. Another factor contributing to strong top-line growth is the healthy and viable industry for electrotherapy devices. The company is also witnessing robust growth in sales volume on strong reimbursement for its products.

Product Portfolio: Investors seem to be upbeat about the company on providing some top-of-the-line products in the industry. Its products like NexWave, NeuroMove and InWave for incontinence treatment buoy optimism in the rehabilitation markets. The company also expects to tap into the huge potential of the blood volume monitor.

Growth Potential: Investors are also optimistic about Zynex’s growing market prospect as its blood volume monitor got patented last year. The company is hoping to start the next phase of developing this segment with more research to support employment opportunities. It also expects to add more products to the division as well as focus on internal product development.

Upbeat Revenue Guidance: The company raised third-quarter revenue guidance to $10.7-$11.2 million on the steady demand for electrotherapy devices. However, the Zacks Consensus Estimate for third-quarter revenues of $12.6 million is beyond the range that Zynex provided. This indicates that the company expects the strong momentum to slow down in the next quarter. This also reflects that the investors are not upbeat about the stock.

Zacks Rank & Stocks to Consider

Currently, Zynex carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Capricor Therapeutics, Inc (CAPR - Free Report) , GW Pharmaceuticals plc (GWPH - Free Report) and Neurotrope, Inc (NTRP - Free Report) .

Capricor, currently sporting a Zacks Rank #1 (Strong Buy), has a projected third-quarter 2019 earnings growth rate of 28.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals estimates third-quarter earnings growth rate to be 70.2%. It currently flaunts a Zacks Rank #1.

Neurotrope, with a Zacks Rank #2 (Buy), has a projected third-quarter earnings growth rate of 27.7%.

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