Markets

Here's Why You Should Buy Inogen (INGN) Stock Right Now

Inogen, Inc.INGN is currently one of the top performing stocks in the MedTech space. Solid second-quarter results and a raised guidance are currently favoring the stock.

Shares Up

In the past year, shares of Inogen have skyrocketed 167.9% against the industry 's decline of 3.7%.

This Zacks Rank #2 (Buy) stock currently has a Growth Score of A. This reflects possibilities of outperformance over the long haul. Our research shows that stocks, with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, are better picks than most.

For the current quarter, the Zacks Consensus Estimate for earnings per share is pegged at 51 cents, reflecting growth of 54.6%.

Let's delve deeper.

Factors That Make It an Attractive Pick

Solid Q2 Results

Inogen recently reported strong second-quarter results, where both earnings per share and revenues beat the consensus mark. Sales revenues totaled $92 million, up 58.5% on a year-over-year basis.

Business-to-business sales in the United States totaled $32.9 million, up 55.7% on a year-over-year basis.

Additionally, direct-to-consumer revenues in the United States grossed $38.3 million in the reported quarter. This reflects an increase of 74.3% from the prior-year quarter.

Gross margin was 49.8%, which expanded 60 basis points (bps) in the quarter under review. Operating margin was 14.4%, up 110 bps.

Inogen, Inc Price and Consensus

Inogen, Inc Price and Consensus | Inogen, Inc Quote

Raised Guidance

Inogen raised its 2018 revenue guidance to $340-$350 million from $310-$320 million, representing year-over-year growth of 36.3% to 40.3%. The Zacks Consensus Estimate is pegged at $348.8 million, within the guided range.

Inogen expects direct-to-consumer sales to be its fastest-growing channel and domestic business-to-business sales to have significant growth rate in 2018.

Internationally, business-to-business sales are expected to register solid growth too as Inogen continues to focus on European markets. However, rental revenues are expected to decline 10% in 2018. The company's 2018 adjusted net income guidance is at $45-$48 million, up from $38-$41 million, representing year-over-year growth of 114.3% to 128.5%.

Adjusted EBITDA for the year is expected between $65 million and $69 million, up from $62-$67 million, representing 27.9% to 35.7% year-over-year growth.

Global Prospects Bright

Inogen has confirmed that its outlook for European sales in 2018 remains optimistic.

In the second quarter of 2018, sales in Europe represented 88.3% of international sales, up from 87.6% in the year-ago quarter. Inogen's European partners significantly contributed to the company's business-to-business sales in the reported quarter.

Key Picks

Some other top-ranked stocks in the broader medical space are Intuitive Surgical ISRG , Integer Holdings Corporation ITGR and Masimo Corporation MASI .

Intuitive Surgical's expected long-term earnings growth rate is 14.7%. The stock carries a Zacks Rank #2.

Integer Holdings has an expected growth rate of 12.6% for the next year. The stock flaunts a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here .

Masimo's long-term earnings growth rate is projected at 14.8%. The stock carries a Zacks Rank #2.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

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

Integer Holdings Corporation (ITGR): Free Stock Analysis Report

Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report

Inogen, Inc (INGN): Free Stock Analysis Report

Masimo Corporation (MASI): Free Stock Analysis Report

To read this article on Zacks.com click here.

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.

In This Story

INGN MASI ITGR ISRG

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More