Headquartered in Latham, NY, AngioDynamics Inc. ANGO, a leading provider of minimally invasive medical devices, recently announced the receipt of CE mark for Solero Microwave Tissue Ablation (MTA) System. The MTA System has been designed for the ablation (the surgical removal) of soft tissue during open, laparoscopic or percutaneous procedures. However, the system is not intended for cardiac use.
We note that the core areas of AngioDynamics’ strength include the platforms of BioFlo Midline in the Vascular Access franchise and NanoKnife within the Oncology/Surgery segment. Per management, the regulatory progress is likely to strengthen the company’s oncology/surgery portfolio. With the MTA System, physicians can maximize the volume of tissue ablated in a short period of time.
The price performance of AngioDynamics has been disappointing of late. Over the last three months, the stock added 0.06%, comparing unfavorably with the Zacks classified Medical Instrument sub-industry’s gain of roughly 7.1%. Furthermore, the current return of the stock is also way below the S&P 500’s 5.2% over the same time frame. The stock showcased a dismal price trend, declining 0.5% to $16.76 on Mar 14, following the news release.
On the positive side, the stock holds a long-term expected earnings growth rate of 15%, instilling investor confidence. Notably, AngioDynamics has a Zacks Rank #3 (Hold).
AngioDynamics has been leveraging on its oncology/surgery segment to strengthen its market position of late. The segment accounted for 13.7% of net revenues in fiscal 2016 and includes products like Microwave Ablation, Radiofrequency Ablation (RFA) and the NanoKnife line of offerings.
AngioDynamics, Inc. Price
AngioDynamics, Inc. Price | AngioDynamics, Inc. Quote
Taking the latest regulatory progress into consideration, the bountiful opportunities in the global ablation technology market also buoy optimism. In this regard, an analysis by Markets And Markets projects that the niche market will generate revenues worth $4.73 billion by 2021, multiplying at a CAGR of around 10.9%.
Stocks to Consider
Better-ranked stocks in the broader medical sector include Inogen Inc. INGN, Avinger, Inc. AVGR and Fluidigm Corporation FLDM. Notably, Inogen sports a Zacks Rank #1 (Strong Buy) while Fluidigm and Avinger carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Inogen has a long-term expected earnings growth rate of 17.05%. Notably, the stock represents an impressive one-year return of 77.4%.
Avinger projects sales growth of 30.6% for the current year. Additionally, the company posted a positive earnings surprise of 27% in the last quarter.
Fluidigm Corporation has a long-term expected earnings growth rate of 25%. The stock has added 6.08% in the last one year.
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