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Edwards Lifesciences' TAVR & International Prospects Solid

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On Jun 2, we issued an updated research report on leading molecular diagnostic company, Edwards Lifesciences CorporationEW . The stock currently has a Zacks Rank #2 (Buy).

For the majority of the last three months, Edwards Lifesciences has been trading above the Zacks categorized Medical - Instruments industry. The stock has gained 26.9%, way ahead of the broader industry's gain of 7.9%. Management has raised the lower end of the 2017 revenue guidance which indicates that this bullish trend will continue in the upcoming quarters.

We are encouraged by the company's long-term growth strategies and recent progress in its technology pipeline. In transcatheter heart valve (THV), Edwards Lifesciencesexpects to maintain its leadership position in the global Transcatheter Aortic Valve Replacement (TAVR) market through increased focus on expanding patient access, actively leveraging current valve platforms for additional indications, developing next-generation valve platforms and maintaining relationships with clinicians, payers and regulators.

We are encouraged by EdwardsLifesciences' focus on building its pipeline that should strengthen its foothold across all operating businesses. In the first quarter of 2017, the company received FDA clearance for its HemoSphere advanced monitoring platform. The company also witnessed growth across its emerging portfolio of mitral and tricuspid repair therapies, courtesy of the positive feedback received during the reported quarter.

Also, we are optimistic to note that management is striving to strengthen its hold in Asia, especially in Japan. The company is also looking forward to the launch of its INSPIRIS RESILIA aortic valve by the end of 2017 in Japan.

On the flip side, foreign exchange headwinds continue to remain a major dampener for the company's international businesses. Moreover, competitive landscape in the overseas market also weighs on Edwards Lifesciences' prospects. The U.S. government's significant reform to overhaul the health care system has the potential to affect EdwardsLifesciences' financial position.

Other Key Picks

Other top-ranked stocks in the broader medical sector are Luminex Corporation LMNX , Inogen, Inc. INGN and Accelerate Diagnostics, Inc. AXDX . Notably, Luminex and Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Luminex has an expected long-term adjusted earnings growth of almost 16.3%. The stock added roughly 12.4% over the last three months.

Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of roughly 82.0%.

Accelerate Diagnostics has a long-term expected earnings growth rate of 30.0%. The stock added roughly 10.1% over the last three months.

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


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

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