Shares of Mazor Robotics MZOR surged over 5% on Wednesday to touch a new all-time high. Now the question for investors is: should you consider buying the surgical robotics maker's stock?
Mazor Robotics' medical devices focus on robotic guidance technology to help assist surgeons. The company has seen its stock price skyrocket from under $25 per share at the start of the year to its new all-time intraday trading high of $52.20 a share. This alone might scare away investors who are worried that it will be hard for Mazor Robotics to break through a new threshold soon.
Let's take a look at what the company does and some of its current fundamentals to see if it might be a stock for investors to consider.
Mazor Robotics is a young surgical robotics company with a market cap of $1.28 billion that operates out of offices in Orlando, Florida and Caesarea, Israel. The company currently makes two different pieces of robotic surgery equipment, the "Mazor X" and "Renaissance." The products are designed to help innovate surgical techniques for spine surgeries.
The surgical assurance platforms help surgeons maximize procedural predictability and patient benefits. The larger, trademarked Mazor X features a workstation with a large touchscreen monitor that serves as a guidance screen and the surgeon's control panel. The robotic guidance system has a surgical arm, a 3D camera with special tracking, and a surgical control system.
The company's core focus is on pre-op analytics, intra-op guidance, and intra-op verification, which allows the surgeon to review the surgical plan in 3D, while the brace along with the surgical arm provide more control and precision than a human.
The concept is relatively simple: a surgeon operates at a workstation near the patient and the robotic components essentially perform the physical act of the surgery on the patient.
Mazor Robotics' products have caught some investors' eyes already, including medical device giant Medtronic plc MDT . Medtronic purchased a stake in Mazor Robotics last year as part of a deal that allowed Medtronic to distribute the Mazor X system.
Mazor Robotics announced recently that the two companies would further their partnership, with Medtronic's total investment in the company climbing to $72 million .
Mazor Robotics is currently a Zacks Rank # 2 (Buy), with "C" grades for both Growth and Momentum in our Style Scores system. Like many young experimental medical and biotech companies, Mazor Robotics does not currently represent great value to investors. Because it is still unprofitable, the company currently has no price-to-earnings ratio, and has a P/B ratio of 19.34 and a 26.26 P/S ratio.
Mazor Robotics' 0.60 Sales/Assets ratio falls just short of the industry average. Yet the company looks to be on a solid growth trajectory with current cash flow growth of 20.08%, beating the " Medical - Instruments " industry average of 4.37%.
Over the last 12 weeks, the company's stock price has climbed 17.80%, which tops the industry's 0.31% loss. Mazor Robotics 129.33% year-to-date price change crushes the industry average as well as the S&P 500.
Within the last 60 days, the surgical robotics company has received one full-year upward earnings estimate revision, as well as one for the following year. Mazor Robotics earnings are projected to pop 4.35% for its current quarter based on our consensus estimates. The firm's full-year EPS is expected to fall 3.01% to post an $0.89 per share loss.
Yet, the company's revenues are projected to skyrocket 92.66% this quarter and 59.16% for the year. This indicates that the early stage medical device company is clearly expanding rapidly but this expansion has been costly.
Investors who can handle the ebbs and flows that often come along with young firms in the biotech and medical device industries might consider Mazor Robotics, especially if Medtronic decides to buy the firm outright down the road.
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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 Mazor Robotics Ltd. (MZOR): Free Stock Analysis Report Medtronic PLC (MDT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research