Back to top

Image: Bigstock

NuVasive's (NUVA) Global Prospects Solid, Competition Rife

Read MoreHide Full Article

On Jun 4, we issued an updated research report on NuVasive, Inc. . We are upbeat about the company’s flourishing international business, which holds immense opportunity. However, a highly competitive landscape is a concern for this Zacks Rank #3 (Hold) company.

This leading global medical device company in the global spine market, focused on developing minimally-disruptive surgical products and procedurally-integrated solutions for the spine, has been outperforming its industry over the past month. The stock has gained 5.8% compared with the industry’s 4.5% rise.

We are upbeat about NuVasive’s international business recording above 20% growth for the sixth consecutive quarter in the first quarter of 2018. The company saw strong sales growth across all geographies. Emerging markets also performed well, with strong growth in South Africa and Saudi Arabia. Asia Pacific grew in double-digits with strong results from Japan's reintroduction of XLIF. 

Further, NuVasive’s healthy cash balance should support its plans to pursue acquisitions and develop products.

Meanwhile, the presence of a large number of players has made the medical devices market intensely competitive. The orthopedic industry, in particular, is extremely competitive with the presence of bellwethers like Zimmer Biomet Holdings (ZBH - Free Report) and Stryker Corporation (SYK - Free Report) , among others.

Also, margin drag, pricing pressure and reimbursement issues continue to be other major headwinds.

Key Pick

A better-ranked stock in the broader medical sector is Intuitive Surgical (ISRG - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical has an expected long-term earnings growth rate of 12.1%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Stryker Corporation (SYK) - free report >>

Intuitive Surgical, Inc. (ISRG) - free report >>

Zimmer Biomet Holdings, Inc. (ZBH) - free report >>

Published in