In the latest trading session, Edwards Lifesciences (EW) closed at $231.46, marking a -0.67% move from the previous day. This move lagged the S&P 500's daily gain of 0.49%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.67%.
Prior to today's trading, shares of the medical device maker had gained 1.68% over the past month. This has outpaced the Medical sector's gain of 0.98% and lagged the S&P 500's gain of 3.03% in that time.
EW will be looking to display strength as it nears its next earnings release. 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.
Investors should also note any recent changes to analyst estimates for EW. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. EW currently has a Zacks Rank of #3 (Hold).
Digging into valuation, EW currently has a Forward P/E ratio of 37.63. Its industry sports an average Forward P/E of 30.21, so we one might conclude that EW is trading at a premium comparatively.
Investors should also note that EW has a PEG ratio of 2.54 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Instruments was holding an average PEG ratio of 2.67 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.
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