We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Hold on to Nevro (NVRO) Stock Now
Read MoreHide Full Article
Nevro Corp. (NVRO - Free Report) is well poised for growth on the back of its flagship platform Senza and solid international prospects. However, intense competition continues to mar prospects.
The stock has gained 22.6% compared with the industry’s growth of 18.2% in a year’s time.
Nevro with a market capitalization of $5.25 billion is a medical device company that engages in developing and commercializing a neuromodulation platform for the treatment of chronic pain, primarily in the leg. Its trailing four-quarter average earnings beat is 9.9%
Let’s take a closer look at the factors that substantiate the company’s current Zacks Rank #3 (Hold) status.
Key Catalysts
Senza — A Key Driver: Nevro is steadily gaining from its Senza flagship platform, developed and commercialized for the treatment of chronic pain.Currently, Omnia represents between 70% and 80% of the company’s utilization in the global market.In December 2020, management announced that the company submitted a pre-market approval (PMA) supplement to the FDA to get authorization for its Senza System to treat chronic pain related to Painful Diabetic Neuropathy (PDN).
The company is still on track to attain the FDA PMA for the same. The recent approvals for the Omnia upgrade, powered by HFX Connect and the new trial stimulator, are expected to provide momentum throughout 2021. In April 2021, the company launched its HFX brand and an updated website, which is designed to unify its products and services to optimize the physician and patient experience. The unveiling of the HFX brand platform includes the full U.S. market launch of the company's recent Omnia upgrade.
International Prospects: Nevro currently sells Senza in Europe and Australia through a network of sales agents and independent distributors. To date, the company has expanded its direct sales operations to Austria, Australia, Belgium, Germany, Luxembourg, the Netherlands, Norway, Sweden and Switzerland. In September 2020, management announced that the company will set up its global manufacturing operational base in Costa Rica that will enable it to make investments and back its prospects. Notably, in the first quarter of 2021, international revenues were $13.9 million, up 14% year over year on a reported basis and 4% in constant currency.
What’s Deterring the Stock?
Nevro faces stiff competition in the Spinal Cord Stimulation (SCS) market. Per management, the primary factors intensifying the same are brand recognition, clinical research leadership, and pricing and reimbursement. Consequently, this remains a concern.
Which Way are Estimates Headed?
For 2021, the Zacks Consensus Estimate for revenues is pegged at $445.2 million, indicating a rise of 22.9% from the prior-year reported figure. The same for adjusted loss per share stands at $2.41
The Cooper Companies has a projected long-term earnings growth rate of 11%.
Veeva has a projected long-term earnings growth rate of 14.5%.
HCA Healthcare has an estimated long-term earnings growth rate of 12.4%
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
Image: Bigstock
Here's Why You Should Hold on to Nevro (NVRO) Stock Now
Nevro Corp. (NVRO - Free Report) is well poised for growth on the back of its flagship platform Senza and solid international prospects. However, intense competition continues to mar prospects.
The stock has gained 22.6% compared with the industry’s growth of 18.2% in a year’s time.
Nevro with a market capitalization of $5.25 billion is a medical device company that engages in developing and commercializing a neuromodulation platform for the treatment of chronic pain, primarily in the leg. Its trailing four-quarter average earnings beat is 9.9%
Let’s take a closer look at the factors that substantiate the company’s current Zacks Rank #3 (Hold) status.
Key Catalysts
Senza — A Key Driver: Nevro is steadily gaining from its Senza flagship platform, developed and commercialized for the treatment of chronic pain.Currently, Omnia represents between 70% and 80% of the company’s utilization in the global market.In December 2020, management announced that the company submitted a pre-market approval (PMA) supplement to the FDA to get authorization for its Senza System to treat chronic pain related to Painful Diabetic Neuropathy (PDN).
The company is still on track to attain the FDA PMA for the same. The recent approvals for the Omnia upgrade, powered by HFX Connect and the new trial stimulator, are expected to provide momentum throughout 2021. In April 2021, the company launched its HFX brand and an updated website, which is designed to unify its products and services to optimize the physician and patient experience. The unveiling of the HFX brand platform includes the full U.S. market launch of the company's recent Omnia upgrade.
International Prospects: Nevro currently sells Senza in Europe and Australia through a network of sales agents and independent distributors. To date, the company has expanded its direct sales operations to Austria, Australia, Belgium, Germany, Luxembourg, the Netherlands, Norway, Sweden and Switzerland. In September 2020, management announced that the company will set up its global manufacturing operational base in Costa Rica that will enable it to make investments and back its prospects. Notably, in the first quarter of 2021, international revenues were $13.9 million, up 14% year over year on a reported basis and 4% in constant currency.
What’s Deterring the Stock?
Nevro faces stiff competition in the Spinal Cord Stimulation (SCS) market. Per management, the primary factors intensifying the same are brand recognition, clinical research leadership, and pricing and reimbursement. Consequently, this remains a concern.
Which Way are Estimates Headed?
For 2021, the Zacks Consensus Estimate for revenues is pegged at $445.2 million, indicating a rise of 22.9% from the prior-year reported figure. The same for adjusted loss per share stands at $2.41
Stocks to Consider
Some better-ranked stocks from the broader medical space are The Cooper Companies (COO - Free Report) , Veeva Systems (VEEV - Free Report) and HCA Healthcare (HCA - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Cooper Companies has a projected long-term earnings growth rate of 11%.
Veeva has a projected long-term earnings growth rate of 14.5%.
HCA Healthcare has an estimated long-term earnings growth rate of 12.4%
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>