Shares of Shockwave Medical SWAV are up almost 15% so far this week. Majority of this gain is likely due to acquisition rumors. According to a report by the Wall Street Journal, Johnson & Johnson JNJ is in discussions to acquire Shockwave Medical.
Shockwave Medical is a leader in developing devices for treating heart disease and has been attracting the attention of industry giants with its innovative technology. Utilizing shockwaves to break down calcified plaque in heart vessels, Shockwave Medical's approach mirrors the treatment of kidney stones — a method that has shown promise in addressing cardiovascular issues.
The reported acquisition talks have propelled Shockwave Medical's stock, with shares surging more than 11% during afternoon trading on Mar 26 following the news. While neither Johnson & Johnson nor Shockwave Medical has officially commented on the rumors, the prospect of a potential deal has sparked speculation within the industry.
So far this year, Shockwave Medical shares have surged 69.3% compared with the industry’s rise of 8.7%. The S&P 500 Index has jumped 9.9% in the same time period.
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Potential Factors
In the past year, media reports have also linked other major players like Medtronic and Boston Scientific as potential bidders for the company. The potential of Shockwave Medical's innovative technology and the company’s substantial market capitalization — nearly $12 billion — make it an attractive target for companies seeking to expand their cardiovascular product portfolios.
For Johnson & Johnson, a successful acquisition of Shockwave Medical could align with its strategic goals of enhancing its cardiovascular offerings. With annual revenues of $30.4 billion in 2023, Johnson & Johnson's MedTech division is already one of the leaders in the medical technology industry. The addition of Shockwave Medical's innovative solutions could further solidify its position as a leader in cardiovascular care.
Shockwave Medical's recent milestones, including the acquisition of Neovasc and the launch of the Shockwave C2+ coronary IVL catheter, underscore its momentum in the market. With annual revenues reaching $730.2 million in 2023 and a more than nine-fold jump in stock value since its initial public offering in 2019, Shockwave Medical has demonstrated its potential for growth and innovation.
ShockWave Medical, Inc. Price
ShockWave Medical, Inc. price | ShockWave Medical, Inc. Quote
Zacks Rank and Other Key Picks
Shockwave Medical currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Cardinal Health CAH and Stryker SYK both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cardinal Health’s stock has surged 50.9% in the past year. Earnings estimates for Cardinal Health have risen from $7.28 to $7.29 in fiscal 2024 and from $8.02 to $8.04 in fiscal 2025 in the past 30 days.
CAH’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 15.6%. In the last reported quarter, it delivered an earnings surprise of 16.67%.
Estimates for Stryker’s 2024 earnings per share have remained constant at $11.86 in the past 30 days. Shares of the company have moved 28.5% upward in the past year compared with the industry’s rise of 5.2%.
SYK’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 5.09%. In the last reported quarter, it delivered an average earnings surprise of 5.81%.
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