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Here's Why You Should Hold on to Glaukos (GKOS) Stock Now
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Glaukos Corporation (GKOS - Free Report) is well-poised for growth backed by strength in iStent technology and robust product portfolio. However, stiff competition remains a concern.
Shares of this Zacks Rank #3 (Hold) have lost 35.2% against the industry’s growth of 8.3% in a year’s time. The S&P 500 Index has rallied 26.2% in the same time frame.
Glaukos — with a market capitalization of $2.06 billion — is a leading ophthalmic medical technology and pharmaceutical company. It projects growth of 20.9% for 2021 and expects to maintain its strong performance. The company has a trailing four-quarter earnings surprise 48.8%, on average.
Key Catalysts
Glaukos’ flagship iStent is the first FDA-approved surgical device available for insertion in conjunction with cataract surgery. This is done for the reduction of intraocular pressure in adult patients with mild-to-moderate open-angle glaucoma.
During the third quarter of 2021, the company achieved a market-leading clinical milestone that surpassed 200 peer-reviewed publications on its iStent technologies. This reflects the most solid, diverse and longest-term body of clinical evidence for any mix technology.
Management at Glaukos continues to remain optimistic about the prospects in the iStent platform worldwide, including the emerging economies. The company advanced the U.S. commercial rollout of the iStent inject W, which offers the same safety and efficacy of iStent inject but with added benefits during the first quarter of 2021. During the same time, Glaukos advanced the commercial rollout of iStent inject W in key international markets like Australia, Japan and several European countries.
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On its second-quarter 2021 earnings call, Glaukos stated that it is focused on preparing for an iStent infinite regulatory submission and continues to target FDA approval around the end of 2021.
The product has received standalone indication approval in Australia and regulatory approval in India. It has been registering sustained progress across several of the key market access initiatives.
The company expects a robust pipeline of new product launches to substantially expand its market opportunities. With the targeted launches of iStent infinite in late 2021, and promising longer-term programs of iStent SA, iDose TREX, iDose Rock and the IOP Sensor program, Glaukos believes that it is positioned well to drive sustainable long-term growth in its glaucoma franchise in the near future.
Factor Hurting the Stock
Glaukos’ competitors include medical companies, academic and research institutions or others that develop new drugs, therapies, medical devices or surgical procedures to treat glaucoma. Consequently, intense competition continues to weigh on the company’s overall performance.
Estimates Trend
Glaukos has been witnessing a positive estimate revision trend for 2021. In the past 60 days, the Zacks Consensus Estimate for its loss per share has widened from a loss of 85 cents to a loss of 91 cents.
The Zacks Consensus Estimate for the company’s fourth-quarter 2021 revenues is pegged at $67.6 million, suggesting a fall of 7.7% from the year-ago reported number.
Stocks to Consider
Some better-ranked stocks in the broader medical space include Thermo Fisher Scientific Inc. (TMO - Free Report) , McKesson Corporation (MCK - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) .
Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%).
McKesson beat earnings estimates in each of the trailing four quarters, the average surprise being 19.9%. The company currently carries a Zacks Rank #2.
McKesson’s long-term earnings growth rate is estimated at 8.9%. The company’s earnings yield of 9.9% compares favorably with the industry’s 3.2%.
AngioDynamics surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 125.6%. The company currently sports a Zacks Rank #1.
AngioDynamics’ consensus mark for revenues for fiscal 2022 stands at $313.3 million, suggesting an improvement of 7.7% from the prior-year reported figure. The company’s earnings yield of 0.1% compares favorably with the industry’s (3.6%).
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Here's Why You Should Hold on to Glaukos (GKOS) Stock Now
Glaukos Corporation (GKOS - Free Report) is well-poised for growth backed by strength in iStent technology and robust product portfolio. However, stiff competition remains a concern.
Shares of this Zacks Rank #3 (Hold) have lost 35.2% against the industry’s growth of 8.3% in a year’s time. The S&P 500 Index has rallied 26.2% in the same time frame.
Glaukos — with a market capitalization of $2.06 billion — is a leading ophthalmic medical technology and pharmaceutical company. It projects growth of 20.9% for 2021 and expects to maintain its strong performance. The company has a trailing four-quarter earnings surprise 48.8%, on average.
Key Catalysts
Glaukos’ flagship iStent is the first FDA-approved surgical device available for insertion in conjunction with cataract surgery. This is done for the reduction of intraocular pressure in adult patients with mild-to-moderate open-angle glaucoma.
During the third quarter of 2021, the company achieved a market-leading clinical milestone that surpassed 200 peer-reviewed publications on its iStent technologies. This reflects the most solid, diverse and longest-term body of clinical evidence for any mix technology.
Management at Glaukos continues to remain optimistic about the prospects in the iStent platform worldwide, including the emerging economies. The company advanced the U.S. commercial rollout of the iStent inject W, which offers the same safety and efficacy of iStent inject but with added benefits during the first quarter of 2021. During the same time, Glaukos advanced the commercial rollout of iStent inject W in key international markets like Australia, Japan and several European countries.
On its second-quarter 2021 earnings call, Glaukos stated that it is focused on preparing for an iStent infinite regulatory submission and continues to target FDA approval around the end of 2021.
The product has received standalone indication approval in Australia and regulatory approval in India. It has been registering sustained progress across several of the key market access initiatives.
The company expects a robust pipeline of new product launches to substantially expand its market opportunities. With the targeted launches of iStent infinite in late 2021, and promising longer-term programs of iStent SA, iDose TREX, iDose Rock and the IOP Sensor program, Glaukos believes that it is positioned well to drive sustainable long-term growth in its glaucoma franchise in the near future.
Factor Hurting the Stock
Glaukos’ competitors include medical companies, academic and research institutions or others that develop new drugs, therapies, medical devices or surgical procedures to treat glaucoma. Consequently, intense competition continues to weigh on the company’s overall performance.
Estimates Trend
Glaukos has been witnessing a positive estimate revision trend for 2021. In the past 60 days, the Zacks Consensus Estimate for its loss per share has widened from a loss of 85 cents to a loss of 91 cents.
The Zacks Consensus Estimate for the company’s fourth-quarter 2021 revenues is pegged at $67.6 million, suggesting a fall of 7.7% from the year-ago reported number.
Stocks to Consider
Some better-ranked stocks in the broader medical space include Thermo Fisher Scientific Inc. (TMO - Free Report) , McKesson Corporation (MCK - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) .
Thermo Fisher surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%).
McKesson beat earnings estimates in each of the trailing four quarters, the average surprise being 19.9%. The company currently carries a Zacks Rank #2.
McKesson’s long-term earnings growth rate is estimated at 8.9%. The company’s earnings yield of 9.9% compares favorably with the industry’s 3.2%.
AngioDynamics surpassed earnings estimates in three of the trailing four quarters and missed once, the average surprise being 125.6%. The company currently sports a Zacks Rank #1.
AngioDynamics’ consensus mark for revenues for fiscal 2022 stands at $313.3 million, suggesting an improvement of 7.7% from the prior-year reported figure. The company’s earnings yield of 0.1% compares favorably with the industry’s (3.6%).