On Sep 6, shares of Edwards Lifesciences EW reached a new 52-week high of $228.19, closing the session marginally lower at $226.29. The rally was fueled by the recent release of impressive results.
Edwards Lifesciences had a great run on the bourses in the past year. The stock has returned 68% compared to the broader industry’s decline of 4%
Considering this, one may expect the company to scale new highs in the upcoming quarters. Further, the company has average positive earnings surprise of 4.3% for the trailing four quarters. A positive growth rate of 10.7% for the next year also instills optimism.
Estimate revision trends for the current year look impressive. In the past two months, ten estimates have moved north, while two have moved in the opposite direction.
Factors Driving Edwards Lifesciences
Let’s take a look at the growth propellers.
Regulatory Go-Aheads: Market is upbeat about Edwards Lifesciences’ receipt of FDA approval in August 2019 for expanding the use of its flagship SAPIEN 3 and SAPIEN 3 Ultra transcatheter heart valve systems to treat severe, symptomatic aortic stenosis in patients who face a low risk of open-heart surgery.The company also received FDA approval for CLASP IIF, a prospective, multicenter, randomized, controlled pivotal trial studying the PASCAL system.
Edwards Lifesciences Corporation Price
Edwards Lifesciences Corporation price | Edwards Lifesciences Corporation Quote
Strategic Acquisition: Investors have been optimistic about Edwards Lifesciences’ prospects since the global major closed the deal to acquire CAS Medical Systems (CASMED) in April 2019. The latter is a medical technology company which specializes in non-invasive brain and tissue oxygenation monitoring.
Positive Outcomes of Clinical Studies: In May 2019, the company released favorable six-month data outcomes from the CLASP study of its PASCAL transcatheter valve repair system. This has also lifted the share price.
Zacks Rank & Stocks Worth a Look
Edwards Lifesciences carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader medical space are Medtronic MDT, Baxter BAX and NuVasive NUVA, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Medtronic’s long-term earnings growth rate is expected at 7.13%.
Baxter’s long-term earnings growth rate is projected at 12.8%.
NuVasive’s long-term earnings growth rate is expected to be 12.75%
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Baxter International Inc. (BAX) : Free Stock Analysis Report
NuVasive, Inc. (NUVA) : Free Stock Analysis Report
Medtronic PLC (MDT) : Free Stock Analysis Report
Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research