In the latest trading session, Abiomed (ABMD) closed at $261.92, marking a -1.68% move from the previous day. This change lagged the S&P 500's 1.32% loss on the day. Elsewhere, the Dow lost 1.41%, while the tech-heavy Nasdaq lost 1.51%.
Prior to today's trading, shares of the maker of heart devices had gained 0.61% over the past month. This has outpaced the Medical sector's loss of 1.9% and the S&P 500's loss of 5.09% in that time.
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 37.18% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $210.58 million, up 16.98% from the prior-year quarter.
ABMD's full-year Zacks Consensus Estimates are calling for earnings of $4.57 per share and revenue of $925.30 million. These results would represent year-over-year changes of -18.54% and +20.26%, respectively.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 6.49% lower within the past month. ABMD is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note ABMD's current valuation metrics, including its Forward P/E ratio of 58.26. This valuation marks a premium compared to its industry's average Forward P/E of 30.72.
Also, we should mention that ABMD has a PEG ratio of 2.08. 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. The Medical - Instruments industry currently had an average PEG ratio of 2.68 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.
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