In the latest trading session, Edwards Lifesciences (EW) closed at $234.61, marking a -0.5% move from the previous day. This change lagged the S&P 500’s 0% on the day. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the medical device maker had lost 4.26% in the past month. In that same time, the Medical sector gained 4.21%, while the S&P 500 gained 3.37%.
Investors will be hoping for strength from EW as it approaches its next earnings release. In that report, analysts expect EW to post earnings of $1.48 per share. This would mark year-over-year growth of 26.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.15 billion, up 17.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.60 per share and revenue of $4.32 billion, which would represent changes of +19.15% and +16.17%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for EW. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. EW currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, EW is holding a Forward P/E ratio of 42.11. Its industry sports an average Forward P/E of 32.17, so we one might conclude that EW is trading at a premium comparatively.
Meanwhile, EW’s PEG ratio is currently 2.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Medical – Instruments stocks are, on average, holding a PEG ratio of 3.02 based on yesterday’s closing prices.
The Medical – Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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