Cogentix (CGNT) Stock Near 52-Week High: More Room To Run?

Yesterday, Cogentix Medical Inc.'s (NASDAQ:CGNT) shares reached a high of $3.23, a little lower than the recent 52-week high of $3.34, achieved on Dec 27. The company has rallied 55.7% in the last year, much higher than the S&P 500’s gain of 20.4%. It has outperformed the broader industry too over the same time frame. The stock has gained 55.7% compared with the broader industry’s 23.5% improvement. The stock has a market cap of $177.24 million.

The company expects earnings to grow 50% in the next quarter and by a stupendous 100% in the ongoing quarter. Revenues in the current quarter are expected to increase 14.1% on a year-over-year basis. Over the last five years, the company’s sales have witnessed CAGR of 48.1%.

What’s Driving the Stock?

The ‘3 Business Development’ Moves: The company has executed three business development initiatives. These have boosted investors’ confidence in the stock, pulling the share price up rapidly.

The first of these is the acquisition of Genesis Medical, its exclusive Prime Sight partner in the United Kingdom since 2013. It proved to be a profitable move as the acquisition generated $3 million in annual revenues.

The second initiative is a licensing agreement that will also allow Cogentix to launch an Endo-Urology product line in the United States. This product is focused on minimally invasive treatment of kidney stones. Initial response of physicians to the product has been quite positive.

Toward the end of the year, the company made a relatively modest investment of $2 million in Vensica Medical. It is expected to lead to a revolutionary treatment for overactive bladder through VensiCare, a novel, ultra-sound, needle-free drug delivery system.

Investors consider these developments as an indication of Cogentix’s commitment to make prudent investments.

Extended Medicare Coverage: Cogentix’s recent announcement of Palmetto GBA, LLC, a Medicare administrative contractor, extending its coverage policy for Percutaneous Tibial Nerve Stimulation (PTNS) to allow patients with overactive bladder symptoms to receive ongoing maintenance treatments for up to three years is also a positive.

Zacks Rank & Stocks to Consider

Cogentix Medical carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Medical space are Masimo Corporation (NASDAQ:MASI) , Tactile Systems Technology (NASDAQ:TCMD) and Integer Holdings Corporation (NYSE:ITGR) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Masimo has a projected growth rate of 43.40% for the current year. The stock has rallied 27.2%, which is above the broader industry’s gain of 23.5%, in the last year.

Tactile Systems has an expected growth rate of 123.33% for the current year. The stock has rallied 83.4%, which is above the broader industry’s gain in the last year.

Integer Holdings has a projected growth rate of 85.37% for the next quarter. The stock has rallied 57.4% and outperformed the broader industry in the last year.

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