Wright Medical Group Up to Strong Buy on INFINITY Product Launch - Analyst Blog

By Zacks Equity Research,

Shutterstock photo

On Jul 9, Zacks Investment Research upgraded Wright Medical Group, Inc. ( WMGI ) to a Zacks Rank #1 (Strong Buy) from a Zacks Rank #2 (Buy).

Why the Upgrade?

Wright Medical Group witnessed an upward estimate revision for 2014 over the last 30 days, with no downward revision. Consequently, the Zacks Consensus Estimate for 2014 increased 0.8% to stand at a narrower loss of $1.32 per share.

Shares of this specialty orthopaedic company have been on the rise following the recent commercial launch of its INFINITY Total Ankle Replacement System across the U.S. Featuring a low-profile implant design and a straightforward surgical approach, the INFINITY Total Ankle Replacement System aids the treatment of patients with end-stage ankle arthritis.

The INFINITY Total Ankle Replacement System should help Wright Medical Group fortify its leadership position and multi-year competitive lead in the total ankle replacement market.

This breakthrough offering from the INFINITY product range will likely accelerate the ongoing market conversion from fusion procedures to total ankle replacement. It seems to pose a significant threat to Stryker Corporation's ( SYK ) recently acquired Scandinavian Total Ankle Replacement or STAR Ankle System from Small Bone Innovations, a Morrisville, PA-based joint replacement system maker.

For the first quarter of 2014, Wright Medical Group posted a wider adjusted net loss of 34 cents per share compared with a loss of 8 cents in the same quarter of 2013. However, the loss was narrower than the Zacks Consensus Estimate of a loss of 42 cents. The company delivered positive earnings surprises in 3 of the last 4 quarters, with an average beat of 2.7%.

Revenues grew 26.2% during the last reported quarter, driven by strong sales in the Foot and Ankle product line as well as continued progress across the company's international markets.

Wright Medical Group continues to focus on driving sales productivity gains in its U.S. foot and ankle business and expedite international business growth. The advanced INFINITY Total Ankle Replacement System along with several new products slated to launch this year is expected to fuel growth and profits at Wright Medical Group.

Other Stocks to Consider  

Some other medical product stocks that warrant a look are OraSure Technologies, Inc. ( OSUR ) and Cardiovascular Systems Inc. ( CSII ). While OraSure Technologies sports a Zacks Rank #1 (Strong Buy), Cardiovascular Systems carries a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

STRYKER CORP (SYK): Free Stock Analysis Report

WRIGHT MEDICAL (WMGI): Free Stock Analysis Report

ORASURE TECH (OSUR): Free Stock Analysis Report

CARDIOVASCLR SY (CSII): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: SYK , WMGI , OSUR , CSII

More from Zacks.com




Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com