Here's Why You Should Add AngioDynamics to Your Portfolio
AngioDynamics, Inc. ANGO is likely to gain from a series of lucrative acquisitions and a robust product portfolio.
In the past three months, shares of AngioDynamics have gained 13.7% compared with the industry’s growth of 28.9%. Meanwhile, the S&P 500 Index has rallied 27.2%.
With a market capitalization of $369.4 million, the company designs, manufactures and sells a wide range of medical, surgical and diagnostic devices. Its devices are generally utilized in minimally invasive, image-guided procedures. The company has a trailing four-quarter positive earnings surprise of 107.4%, on average.
Let’s delve deeper into the factors that substantiate AngioDynamics’ Zacks Rank #2 (Buy) at present.
Factors Driving AngioDynamics
AngioDynamics announced the acquisition of the C3 Wave PICC tip location system from Medical Components Inc. in fiscal second-quarter 2020. Notably, the latest buyout is anticipated to boost the company’s PICC product line, which has been performing dismally of late.
Additionally, the company recently took over Eximo Medical Ltd. — an early commercial stage medical device company — and its proprietary 355nm wavelength laser-technology platform. Notably, Eximo’s laser technology will complement AngioDynamics’ existing Vascular Interventions and Therapies (“VIT”) product portfolio.
Notably, AngioDynamics’ VIT revenues grossed $30.6 million, up 4.3% from the year-ago quarter’s figure in the fiscal third quarter. Per management, sales growth in AngioVac drove quarterly revenues.
Management expects more product launches from the Eximo integration in the second half of fiscal 2020.
AngioDynamics is a leading provider of minimally invasive medical devices utilized for vascular access, surgery, peripheral vascular disease and oncology.
The company continues to enjoy healthy demand for its coveted NanoKnife system for treating tumors. Increased penetration of the device contributed to the company’s Oncology division’s revenues.
On the R&D front, the company remains focused on investments with respect to three of its key technologies: AngioVac, AURYON, and NanoKnife, while finding ways to boost the profitability profile of other products.
Which Way Are Estimates Headed?
For fiscal 2020, the Zacks Consensus Estimate for revenues is pegged at $268.1 million. For adjusted earnings, the same stands at 11 cents, indicating a decline of 86.8% from the prior year.
Other Key Picks
Some other top-ranked stocks from the broader medical space include Aphria Inc. APHA, Laboratory Corporation of America Holdings LH and West Pharmaceutical Services, Inc. WST. While West Pharmaceutical sports a Zacks Rank #1 (Strong Buy), Aphria and Laboratory Corporation carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
West Pharmaceutical has a projected long-term earnings growth rate of 9.2%.
Aphria has an estimated long-term earnings growth rate of 24.6%.
Laboratory Corporation has an estimated long-term earnings growth rate of 6.1%.
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