Here's Why You Should Invest in Edwards Lifesciences (EW) Now
Edwards Lifesciences Corporation EW has been on a healthy growth trajectory of late. Positive tidings on regulatory front and strategic acquisitions have been providing the company with a competitive edge in MedTech. With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick at the moment.
Edwards Lifesciences has outperformed the broader industry over the last three months. The stock has gained 23.4% ahead of the S&P 500’s 4.6% gain and the broader industry’s 6.1%.
The stock has a market cap of $28.19 billion. The company’s five-year historical growth rate is also favorable at 23.4% compared with the 9.9% increase of its industry and the S&P 500’s 2.8% gain.
The company has a positive earnings surprise of 9.9% for the last four quarters. Also, it has a long-term expected earnings growth rate of 15.1%.
Headquartered in Irvine, CA, the company’s estimate revision trend for the current year has been positive. In the past couple of months, 11 analysts moved north, with no movement in the opposite direction. Earnings estimates rose around 8.2% to $4.49 per share over the same time frame.
Let’s find out whether the recent positive trend is a sustainable one.
Edwards Lifesciences’ fourth-quarter 2017 performance was quite promising with the company beating the Zacks Consensus Estimate for revenues and earnings. Also, the raised guidance for 2018 hints at brighter prospects. In fact, the raised outlook was backed by a strong performance by all three of the company’s product lines.
The market is also upbeat about Edwards Lifesciences’ recent CE Mark for its self-expanding CENTERA valve. The regulatory approval is likely to boost the company's Transcatheter Heart Valves (THV) segment.
Edwards Lifesciences recently acquired Harpoon Medical, Inc. — a privately-held medical technology company focused on beating-heart repair for degenerative mitral regurgitation. Per the agreement, Harpoon Medical’s flagship beating-heart repair procedure for mitral valve patients — HARPOON system — will be added to Edward Lifesciences’ Surgical Heart Valve Therapy portfolio for treating structural heart disease.
Other Key Picks
Other top-ranked stocks in the broader medical sector are PerkinElmer PKI, Bio-Rad Laboratories BIO and Becton, Dickinson and Company BDX.
Bio-Rad Laboratories has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The company has a long-term expected earnings growth rate of 25%.
PerkinElmer has a long-term expected earnings growth rate of 12.3%. The stock carries a Zacks Rank #2.
Becton, Dickinson and Company has a Zacks Rank #2. The company has a long-term expected earnings growth rate of 13.3%.
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