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Edwards Lifesciences (EW) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

In the latest trading session, Edwards Lifesciences (EW) closed at $235.63, marking a -0.96% move from the previous day. This move lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.05%.

Coming into today, shares of the medical device maker had lost 2.32% in the past month. In that same time, the Medical sector gained 5.44%, while the S&P 500 gained 2.48%.

Wall Street will be looking for positivity from EW as it approaches its next earnings report date. On that day, EW is projected to report earnings of $1.48 per share, which would represent year-over-year growth of 26.5%. Our most recent consensus estimate is calling for quarterly revenue of $1.15 billion, up 17.79% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.60 per share and revenue of $4.32 billion. These totals would mark changes of +19.15% and +16.17%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for EW. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 0.02% higher within the past month. EW is currently a Zacks Rank #2 (Buy).

Digging into valuation, EW currently has a Forward P/E ratio of 42.49. This represents a premium compared to its industry's average Forward P/E of 31.38.

Meanwhile, EW's PEG ratio is currently 2.87. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 3.02 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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