Abiomed Inc. (NASDAQ:ABMD) is currently one of the top-performing stocks in the MedTech space. Improvement in price performance and strong fundamentals signify the stock’s bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.
The company has performed impressively over the last year and has the potential to sustain the momentum in the upcoming period. A long-term expected earnings growth rate of 31.5% holds promise for the stock.
Why an Attractive Pick?
Shares Shine Bright
Over the last six months, Abiomed has gained 32% comparing favorably with the S&P 500 index’s rally of 12.1%. The current level is also better than the industry's gain of 4.3%.
The company’s expanding product portfolio is a key catalyst in this regard. Also, cost-savings efforts are encouraging factors.
Northward Estimate Revisions
One estimate for the current year moved north over the past 60 days against no southward revisions, reflecting analysts’ optimism in the company. The Zacks Consensus Estimate for adjusted earnings increased 0.8% for the current year. The positive trend signifies analyst’s bullish sentiment. The company holds a Zacks Rank #2 (Buy), which indicates robust fundamentals and expectations of outperformance in the near term. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Strong Growth Prospects
The company’s Zacks Consensus Estimate of earnings of $2.42 for fiscal 2018 reflects year-over-year growth of 107%. Moreover, earnings are expected to register 8% growth in fiscal 2018.
The Zacks Consensus Estimate for fiscal 2018 revenues of $574.9 million reflects year-over-year improvement of 29.1%. Moreover, revenues are expected to witness 27.5% growth in fiscal 2019.
Abiomed forecasts fiscal 2018 revenues in the range of $565-$575 million. This marks an increase of 27-29% from the fiscal 2016 level. Operating margin is projected in the band of 23-25%.
Positive Earnings Surprise History
Abiomed has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering a positive average earnings surprise of 10.8%.
Impella Product Line
Abiomed’s expanding product portfolio will strengthen the company’s foothold in the prophylactic high-risk PCI and cardiogenic shock patient market. In this regard, the company’s Impella line of products deserves a mention. Per management, Impella is the world's smallest heart pump. It is a support system of percutaneous, catheter-based devices offering hemodynamic support to the heart.
Abiomed’s Impella 2.5, Impella CP and Impella 5.0 are FDA-approved pumps that treat cardiogenic shock. Furthermore, the Impella 2.5 and Impella CP are approved to treat urgent percutaneous coronary interventions (PCI) such as stenting or balloon angioplasty and cure blocked coronary arteries. The company’s right-side heart pump, the Impella RP device, cures right heart failure.
The company also has an Automated Impella Controller, which is the primary user control interface for the Impella platform featuring a highly exclusive10-inch high-resolution display.
Per a research report by bcc Research, the global market for cardiac medical devices is projected to reach $67.5 billion by 2019 at a CAGR of 5.3% during 2014-2019. Considering the l prospects in the niche space, we expect Abiomed to gain solid market tractions in the years to come.
Other Picks
Other top-ranked stocks in the market at large are Integer Holdings Corporation (NYSE:ITGR) , Alibaba Group Holding Limited (NYSE:BABA) and Intuitive Surgical, Inc. (NASDAQ:ISRG) .
Alibaba Group flaunts a Zacks Rank #1. The company has a long-term expected earnings growth rate of 30.7%.
Integer Holdings has a long-term expected earnings growth rate of 15%. The stock carries a Zacks Rank #2.
Intuitive Surgical has a long-term expected earnings growth rate of 9.2%. The stock carries a Zacks Rank #2.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
ABIOMED, Inc. (ABMD): Free Stock Analysis Report
Integer Holdings Corporation (ITGR): Free Stock Analysis Report
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