Abiomed (ABMD) Gains But Lags Market: What You Should Know
Abiomed (ABMD) closed at $285.59 in the latest trading session, marking a +0.6% move from the prior day. This change lagged the S&P 500's 0.67% gain on the day. Elsewhere, the Dow gained 0.82%, while the tech-heavy Nasdaq added 0.78%.
Prior to today's trading, shares of the maker of heart devices had lost 15.13% over the past month. This has lagged the Medical sector's gain of 0.38% and the S&P 500's gain of 1.25% in that time.
Wall Street will be looking for positivity from ABMD as it approaches its next earnings report date. On that day, ABMD is projected to report earnings of $1.07 per share, which would represent year-over-year growth of 33.75%. Our most recent consensus estimate is calling for quarterly revenue of $216.43 million, up 24.07% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.05 per share and revenue of $778.28 million. These totals would mark changes of +106.12% and +31.08%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for ABMD. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ABMD is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, ABMD currently has a Forward P/E ratio of 56.2. Its industry sports an average Forward P/E of 32.06, so we one might conclude that ABMD is trading at a premium comparatively.
Meanwhile, ABMD's PEG ratio is currently 2.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.64 based on yesterday's closing prices.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 86, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Click to get this free report
ABIOMED, Inc. (ABMD): 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.