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Here's Why You Should Hold AngioDynamics' (ANGO) Stock Now

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With a market capitalization of approximately $868.7 million, AngioDynamics, IncANGO is expected to benefit from expanding product portfolio, international market expansion and cost-saving initiatives. These factors indicate considerable growth opportunities in the long run.

However, softness in the company's Venous Insufficiency business and PICC product lines is a concern.

The stock has a Zacks Rank #3 (Hold). Here we take a quick look at the primary factors that have been plaguing AngioDynamics and discuss the prospects that ensure the stock's near-term recovery.

What's Deterring AngioDynamics?

AngioDynamics' Venous Insufficiency business has been sluggish as its largest customer discontinued the exclusive use of EVLT (Endovenous Laser System) products.

As a result of this, AngioDynamics'core Peripheral Vascular business has also been slow. The company renamed the Peripheral Vascular business to Vascular Interventions.

Per management, growth in ports and dialysis products was significantly offset by declines in PICCs.

Why Should You Hold AngioDynamics?

AngioDynamics is a leading provider of minimally invasive medical devices used for vascular access, surgery, peripheral vascular disease and oncology. The company's product lines include ablation systems, fluid management systems, vascular access products, angiographic products and accessories, angioplasty products, drainage products, thrombolytic products as well as venous products.

The company continues to enjoy healthy demand for the coveted NanoKnife system for treating tumors. Higher penetration of the device contributed to revenues in the company's Oncology division. In fact, the recent regulatory approval of VOLTA, a radiofrequency ablation device in Japan, is also a significant positive in our view. The company is already trying to expand commercial opportunities. Besides Germany and Denmark, the company is also looking forward to achieve the same in the rest of Europe and the United Kingdom.

Shares of AngioDynamics have outperformed the industry in a year's time. Notably, the company's shares have rallied 30.7%, against the industry's decline of 6.6%. The current level is also higher than the S&P 500 index's rise of 16.2%.

Which Way are the Estimates Treading?

For the current quarter, the Zacks Consensus Estimate for earnings is pegged at 18 cents, reflecting growth of 50% on a year-over-year basis. The same for the revenues is pegged at $83.4 million, reflecting a decline of 2.4% year over year.

For 2018, the Zacks Consensus Estimate for revenues is pegged at $347.6 million, reflecting growth of 1% year over year. The same for adjusted earnings for 2018 is pegged at 86 cents, reflecting an increase of 16.2% year over year.

AngioDynamics, Inc. Price and Consensus

AngioDynamics, Inc. Price and Consensus | AngioDynamics, Inc. Quote

Key Picks

A few better-ranked stocks in the broader medical space are athenahealth ATHN , Intuitive Surgical ISRG and Veeva Systems VEEV .

athenahealth has a long-term expected earnings growth rate of 17.6%. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Intuitive Surgical's expected long-term earnings growth rate is 14.7%. The stock flaunts a Zacks Rank #1.

Veeva Systems' long-term earnings growth rate is projected at 19.3%. The stock sports a Zacks Rank #1.

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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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