Here's Why You Should Retain Glaukos (GKOS) in Your Portfolio
Glaukos Corporation GKOS is well poised for growth, backed by favorable clinical trial results and a robust product pipeline. However, stiff competition is a concern.
Shares of this Zacks Rank #3 (Hold) have gained 14.7% compared with the industry’s 1.8% increase so far this year. The S&P 500 Index has gained 7.5% in the same time frame.
Glaukos, with a market capitalization of $2.4 billion, is a leading ophthalmic medical technology and pharmaceutical company. It projects an earnings growth of 22.7% for 2024 and expects to sustain its strong performance. The company has a trailing negative four-quarter earnings surprise of 10.32%, on average.
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Key Catalysts
Clinical trials are the primary means to evaluate the efficacy and safety of new medical technologies.
Glaukos launched iPrime — a new disco elastic delivery device — in the latter part of the second quarter of 2022. In the latter part of the first quarter, the company had launched the iAccess device for go anatomy procedures. The addition of these new devices will provide unique solutions, designed to grow and improve treatment options for surgeons, customers and patients. The iAccess device has received positive market feedback.
In August 2022, Glaukos received clearance from the FDA for the commercialization of iStent infinite — an implantable device intended to reduce the intraocular pressure (IOP) of the eye in adult patients with primary open-angle glaucoma in whom previous medical and surgical treatments failed. The company plans to launch the product during the fourth quarter.
In September 2022, Glaukos announced that its targeted injectable implant candidate — iDose TR — for glaucoma patients achieved excellent tolerability and a favorable safety profile, per top-line data from two pivotal studies. The candidate achieved non-inferior reductions in IOP in three months from baseline compared to the timolol ophthalmic solution. Based on these data, the company is planning to file a new drug application, seeking approval for iDose TR from the FDA by the end of 2023. A potential approval for the candidate will substantially boost revenues for Glaukos.
The company is also developing three other candidates — GLK-301, GLK-302 and third-generation iLink therapy — as a potential treatment for Dry Eye Disease, presbyopia and keratoconus, respectively, in separate phase II studies.
These positive developments raise our optimism about the stock.
Glaukos’ better-than-expected fourth-quarter revenues and earnings are also encouraging.
Factor Hurting the Stock
Glaukos’ competitors include medical companies, academic and research institutions, and others that develop new drugs, therapies, medical devices or surgical procedures to treat glaucoma. Thus, intense competition continues to weigh on the company’s overall performance.
Glaukos Corporation Price
Glaukos Corporation price | Glaukos Corporation Quote
Estimates Trend
The Zacks Consensus Estimate for 2023 bottom line is pegged at a loss of $2.38 per share, which implies a deterioration of 9.2% from the previous year’s reported loss of $2.18. The same for 2023 revenues is $292.6 million, indicating growth of 3.4% from the year-ago figure.
Stocks to Consider
Some better-ranked stocks in the broader medical space are Becton, Dickinson and Company BDX, Henry Schein HSIC and The Cooper Companies COO.
Becton, Dickinson and Company, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth of 7.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.47%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
So far this year, BDX’s shares have lost 2.7% against the industry’s 5.2% growth.
Henry Schein, carrying a Zacks Rank #2 at present, has an estimated long-term growth of 18.3%. Its earnings surpassed estimates in three of the trailing four quarters and met the same once, the average beat being 2.97%.
So far this year, the company’s shares have gained 2.1% compared with the industry’s 5.2% growth.
The Cooper Companies, carrying a Zacks Rank #2 at present, has an estimated long-term growth of 11%. COO’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 1.82%.
So far this year, the company’s shares have gained 12.9% compared with the industry’s 5.2% growth.
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Becton, Dickinson and Company (BDX) : Free Stock Analysis Report
Henry Schein, Inc. (HSIC) : Free Stock Analysis Report
The Cooper Companies, Inc. (COO) : Free Stock Analysis Report
Glaukos Corporation (GKOS) : Free Stock Analysis Report
