The Zacks Rank Explained: How to Find Strong Buy Medical Stocks
It doesn't matter if you're a growth, value, income, or momentum-focused investor -- building a successful investment portfolio takes skill, research, and a little bit of luck.
Should You Buy #1 (Strong Buy)-Ranked Penumbra (PEN) for Your Portfolio?
Penumbra was upgraded to the Zacks Rank #1 list on August 3, 2023. The Zacks Rank is a unique stock-rating model that helps you take advantage of earnings estimate revision trends and provides a way to get into stocks highly sought after by institutional investors.
Headquartered in Alameda, CA, Penumbra, as a global healthcare company, designs, develops, manufactures and markets innovative products for use by specialist physicians and healthcare providers to drive improved clinical and health outcomes. It has a broad portfolio that addresses challenging medical conditions in markets with significant unmet needs.
For fiscal 2023, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.17 to $1.73 per share. PEN boasts an average earnings surprise of 94.2%.
Earnings are expected to grow 981.3% for the current fiscal year, while revenue is projected to increase 25%.
Additionally, PEN has climbed higher over the past four weeks, gaining 3.8%. The S&P 500 is up 0.9% in comparison.
Bottom Line
With a #1 (Strong Buy) ranking, positive trend in earnings estimate revisions, and strong market momentum, Penumbra could be just the stock to help your portfolio generate returns that could fund your retirement, your kids' college tuition, or your short- and long-term savings goals.
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