Hold onto Delta (DAL) Now on the Back of Several Tailwinds
In a bid to strengthen its position in predictive analytics, Edwards Lifesciences Corporation EW, has recently announced the approval of De Novo request from the FDA for the Acumen Hypotension Prediction Index (HPI) software. Notably, the company plans a targeted launch of the product in the United States.
This CE Marked, adjunctive predictive cardiovascular indicator as designated by the FDA, comes with the minimally invasive FloTrac IQ sensor. The advantage of Acumen HPI software is that it assists in improved decision making for high risk surgical patients using software algorithms to predict his/her future cardiovascular events through evaluation of cardiovascular vital signs. Furthermore, the Acumen HPI feature goes well with Edwards' minimally invasive, hemodynamic monitoring solutions.
A Glimpse of the Critical Care Business
The Critical Care portfolio includes pulmonary artery catheters, disposable pressure transducers and advanced monitoring systems. Aside from these, it has a line of balloon catheter-based products, surgical clips and inserts.
Critical care product group sales totaled $164.3 million in the fourth quarter of 2017, up 12.3% y/y (rose 10.9% on an underlying basis). Solid improvement across all product categories was driven by strong growth in the company's core products, mainly in the United States and China.
Also, the company aims to tighten its hold on the Critical Care technologies with the ongoing rollout of HemoSphere monitoring platform and the further expansion of Enhanced Surgical Recovery programs.
Per a report by Zion Market Research, the global predictive analytics market is expected to witness a CAGR of approximately 21% between 2016 and 2022. Thus, the latest development has come at an opportune time for the company to cash in on the bountiful opportunities in the high-potential niche market.
Over the past six months, Edwards’ shares have outperformed the industry it belongs to. The stock has rallied 26.4% compared with the industry’s 12.2% rise.
Zacks Rank & Other Key Picks
Edwards carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader medical sector are Bio-Rad Laboratories BIO, athenahealth, Inc. ATHN and Varian Medical Systems, Inc. VAR.
Bio-Rad Laboratories sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The company has a long-term expected earnings growth rate of 20%.
athenahealth is a Zacks #1 Ranked player. The company has a long-term expected earnings growth rate of 21.5%.
Varian Medical has a long-term expected earnings growth rate of 8%. The stock carries a Zacks Rank of 2.
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