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Valued at a market cap of $45.7 billion, Edwards Lifesciences Corporation (EW) provides products and technologies to treat advanced cardiovascular diseases. The Irvine, California-based company is known for its patient-centric approach and close collaboration with physicians.
This healthcare company has underperformed the broader market over the past 52 weeks. Shares of EW have gained 10.9% over this time frame, while the broader S&P 500 Index ($SPX) has soared 14%. Moreover, on a YTD basis, the stock is down 7.7%, compared to SPX’s 1.3% return.
However, zooming in further, EW has outpaced the iShares U.S. Medical Devices ETF (IHI), which declined 8.9% over the past 52 weeks and 6.1% on a YTD basis.
On Oct. 30, EW delivered its Q3 results, and its shares tumbled 1.2% in the following trading session. Due to strength across all product groups, the company reported net sales of $1.6 billion, up 14.7% year-over-year. Meanwhile, its adjusted EPS remained stable at $0.67 compared to the prior-year period but exceeded consensus expectations by a solid margin of 13.6%.
For the current fiscal year, ending in December, analysts expect EW’s EPS to grow 6.6% year over year to $2.59. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 31 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 18 “Strong Buy,” two “Moderate Buy,” and 11 "Hold” ratings.
The configuration is more bullish than a month ago, with 17 analysts suggesting a “Strong Buy” rating.
On Feb. 4, UBS Group AG (UBS) analyst Danielle Antalffy maintained a “Neutral” rating on EW but lowered its price target to $94, indicating a 19.4% potential upside from the current levels.
The mean price target of $96.71 represents a 22.9% premium from EW’s current price levels, while the Street-high price target of $110 suggests a 39.8% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
