Valued with a market capitalization of $45.7 billion, Edwards Lifesciences Corporation (EW) provides products and technologies to treat advanced cardiovascular diseases. The Irvine, California-based company is known for its patient-centered approach and close collaboration with physicians.
This healthcare company has underperformed the broader market over the past 52 weeks. EW shares have gained 10.9% during this period, while the broader S&P 500 index ($SPX) has soared 14%. Additionally, on a year-over-year basis, the stock is down 7.7%, compared to SPX’s 1.3% return.
However, if we zoom in, EW has outperformed the iShares US Medical Device ETF (IHI), which is down 8.9% over the past 52 weeks and 6.1% year-over-year.
On October 30, EW reported its third quarter results and its shares fell 1.2% in the following trading session. Due to strength across all product groups, the company reported net sales of $1.6 billion, a 14.7% year-over-year increase. Meanwhile, its Adjusted EPS was flat at $0.67 compared to the prior-year period, but beat consensus expectations by a solid 13.6% margin.
For the current fiscal year, which ends in December, analysts expect EW’s EPS to grow 6.6% year-over-year to $2.59. The company’s track record of earnings surprises is promising. It surpassed consensus estimates in each of the last four quarters.
Among the 31 analysts covering the stock, the consensus rating is “Moderate Buy,” which is based on 18 “Strong Buy” ratings, two “Moderate Buy” ratings, and 11 “Hold” ratings.
The setup is more bullish than a month ago, with 17 analysts suggesting a “Strong Buy” rating.
On February 4, UBS Group AG (UBS) analyst Danielle Antalffy maintained a “Neutral” rating on EW, but lowered her price target to $94, indicating 19.4% upside potential from current levels.
The average price target of $96.71 represents a 22.9% premium to EW’s current price levels, while the Street’s high price target of $110 suggests 39.8% upside potential from current levels.
On the date of publication, Neharika Jain had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com