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

Zacks Equity Research
Bank of Hawaii (BOH) 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.

In the latest trading session, Abiomed (ABMD) closed at $270.08, marking a -0.67% move from the previous day. This change lagged the S&P 500's 0.66% gain on the day. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.46%.

Heading into today, shares of the maker of heart devices had lost 16.5% over the past month, lagging the Medical sector's loss of 0.8% and the S&P 500's gain of 3.97% in that time.

Investors will be hoping for strength from ABMD as it approaches its next earnings release, which is expected to be May 2, 2019. On that day, ABMD is projected to report earnings of $1.06 per share, which would represent year-over-year growth of 32.5%. Meanwhile, our latest consensus estimate is calling for revenue of $216.43 million, up 24.07% from the prior-year quarter.

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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.2% lower within the past month. ABMD is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, ABMD is currently trading at a Forward P/E ratio of 55.18. This valuation marks a premium compared to its industry's average Forward P/E of 33.45.

Also, we should mention that ABMD has a PEG ratio of 1.99. 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. ABMD's industry had an average PEG ratio of 2.53 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

To follow ABMD in the coming trading sessions, be sure to utilize Zacks.com.


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