On July 8, we have updated our research report on
St. Jude Medical Inc.
), which currently looks attractive with solid one-year return of
52.5%, much higher than the S&P 500 return of 19.7% as well as
returns of 22.9% and 38.7% posted by the company's peers
Boston Scientific Corporation
On Jul 7, shares of the St. Paul, MN-based medical devices major
reached a new lifetime high of $71.90. We believe global
demographic trends, ageing population in developed nations and the
rapid urbanization of developing countries should support company
We are particularly encouraged by St. Jude Medical's recent
acquisition of privately-held CardioMEMS, Inc. at the beginning of
last month. With the closure of the CardioMEMS acquisition, St.
Jude Medical expects accelerated growth in its cardiovascular
The CardioMEMS HF System is a first-of-its-kind U.S. Food and Drug
Administration (FDA)-approved heart failure monitoring device that
has been proven to significantly reduce heart failure-related
hospitalizations. It has set a new treatment paradigm for heart
failure that reduces the need for hospitalizations and improves the
quality of life for patients.
The CardioMEMS HF System has already obtained the CE Mark approval
in the EU. St. Jude Medical now plans to initiate the system's
strategic launch in the U.S.
Recently, St. Jude Medical also received the 2014 Innovation Award
at Cardiostim 2014, the 19th World Congress in Cardiac
Electrophysiology and Cardiac Techniques for its Nanostim leadless
A congress committee of electrophysiologists has chosen St. Jude
Medical's Nanostim leadless pacemaker for the award being the most
innovative product in electrophysiology and cardiac technique.
A few days back, St. Jude Medical also resolved the FDA warning
letter regarding the company's Sylmar facility in California. Last
year, FDA had warned St. Jude Medical for serious violations at the
plant, which included a failure to validate testing methods.
For full year 2014, St. Jude Medical upgraded its revenues guidance
to the range of $5,610 to $5,760 million from the prior range of
$5,600 million to $5,750 million. It also upgraded its adjusted
earnings per share guidance to $3.95-$4.00 from the prior range of
$3.94-$3.99. The current Zacks Consensus Estimates for earnings per
share and revenues for the year are pegged at $3.98 and $5,700
Currently, St. Jude carries a Zacks Rank #3 (Hold). A better-ranked
stock in the medical products industry is
Wright Medical Group Inc.
), which carries a Zacks Rank #1 (Strong Buy).
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