U.S. Markets closed

Abiomed (ABMD) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
MutualFirst Financial (MFSF) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Abiomed (ABMD) closed the most recent trading day at $256.28, moving +1.9% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.42%, while the tech-heavy Nasdaq added 0.03%.

Prior to today's trading, shares of the maker of heart devices had lost 25.96% over the past month. This has lagged the Medical sector's loss of 8.18% and the S&P 500's gain of 2.89% in that time.

Wall Street will be looking for positivity from ABMD as it approaches its next earnings report date. This is expected to be May 2, 2019. In that report, analysts expect ABMD to post earnings of $1.06 per share. This would mark year-over-year growth of 32.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $216.43 million, up 24.07% from the year-ago period.

Investors should also note any 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. ABMD currently has a Zacks Rank of #4 (Sell).

Digging into valuation, ABMD currently has a Forward P/E ratio of 51.04. Its industry sports an average Forward P/E of 31.92, so we one might conclude that ABMD is trading at a premium comparatively.

We can also see that ABMD currently has a PEG ratio of 1.84. 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 2.59 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
ABIOMED, Inc. (ABMD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.