Abaxis (ABAX) At A 52-Week High: What's Driving The Stock?

Shares of Abaxis, Inc. (NASDAQ:ABAX) scaled a new 52-week high of $78.53 on Jan 29, closing lower at $76. The company has gained 62.7% in the last six months, way higher than the broader industry’s gain of 13.9%. The stock has a market cap of $1.73 billion. Taking the stable stock performance into consideration, we expect Abaxis to scale higher in the coming quarters. Also, the company’s long-term expected earnings growth rate of 4% holds promise.

Further, the company’s estimate revision trend for the current year is favorable. In the past 60 days, four estimates moved up while none shifted down. Consequently, estimates were up from $1.10 per share to $1.16.

The company’s five-year historical growth rate is also favorable at 9.2% as compared with the broader industry’s 1.3% and the S&P 500’s 2.8%.

Abaxis carries a Zacks Rank #2 (Buy). The company has an impressive Growth Style Score of B as well. Our Growth Style Score highlights all the vital metrics of a company’s financials to obtain a clearer picture of the quality and sustainability of its growth. Our research shows that stocks with Style Scores of A or B when combined with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) offer the best investment opportunities.

Growth Drivers

The market is upbeat about Abaxis’ recently reported third-quarter fiscal 2018 results. Abaxis exited the quarter on a promising note with a year-over-year increase in revenues and earnings. We are positive on the company’s solid consumable and instrument sales growth along with strength in the Medical and Veterinary market segments. The company is also putting efforts in product innovation through research and development.

Meanwhile, we are encouraged to note that the company is initiating new sales and marketing strategies. In this regard, the company recently received approval from USDA, Center for Veterinary Biologics, for a combination test for heartworm, lyme, ehrlichia and anaplasma — VetScan FLEX4 Rapid Test.

Other Key Picks

A few other top-ranked stocks in the broader medical sector are Amedisys (NASDAQ:AMED) , Bio-Rad Laboratories (NYSE:BIO) and ResMed (NYSE:RMD) .

Bio-Rad Laboratories has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company has a long-term expected earnings growth rate of 25%.

Amedisys has a long-term expected earnings growth rate of 18.5%. The stock carries a Zacks Rank #2.

ResMed has a long-term expected earnings growth rate of 13%. The stock has a Zacks Rank #2.

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