Shockwave Medical (SWAV) Dips More Than Broader Markets: What You Should Know

Shockwave Medical (SWAV) closed the most recent trading day at $290.07, moving -1.17% from the previous trading session. This change lagged the S&P 500's 1.13% loss on the day. At the same time, the Dow lost 1.01%, and the tech-heavy Nasdaq lost 0.14%.

Heading into today, shares of the medical device compnay had gained 0.19% over the past month, outpacing the Medical sector's loss of 4.89% and the S&P 500's loss of 7.59% in that time.

Wall Street will be looking for positivity from Shockwave Medical as it approaches its next earnings report date. On that day, Shockwave Medical is projected to report earnings of $0.68 per share, which would represent year-over-year growth of 1260%. Our most recent consensus estimate is calling for quarterly revenue of $125.85 million, up 93.14% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.57 per share and revenue of $479.91 million. These totals would mark changes of +1088.46% and +102.37%, respectively, from last year.

Any recent changes to analyst estimates for Shockwave Medical should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate has moved 0.02% higher within the past month. Shockwave Medical is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Shockwave Medical has a Forward P/E ratio of 114.29 right now. Its industry sports an average Forward P/E of 28.78, so we one might conclude that Shockwave Medical is trading at a premium comparatively.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 148, which puts it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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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.