Glaukos Corporation (GKOS Quick QuoteGKOS - Free Report) is well-poised for growth, backed by favorable clinical trial results and a robust product pipeline. However, stiff competition remains a concern.

Shares of this Zacks Rank #1 (Strong Buy) have gained 8.9% against the industry’s decline of 29.1% on a year-to-date basis. The S&P 500 Index has fallen 19.3% in the same time frame.

Glaukos — with a market capitalization of $2.23 billion — is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 15% for 2023 and expects to sustain its strong performance. The company has a trailing four-quarter earnings surprise of 28.7%, on average.

Key Catalysts

Clinical trials are the primary means to evaluate the efficacy and safety of new medical technologies.

In January, Glaukos announced that its iDose TR sustained-release travoprost implant continued to deliver sustained substantial reductions in intraocular pressure (IOP) in a 36-month analysis of the 36-month phase IIb clinical trial conducted under a U.S. Investigational New Drug (IND) protocol.

In the same month, the company announced that it has enrolled the first patient in a phase II clinical trial of GLK-302 for the treatment of presbyopia and the first patient into a phase II clinical trial of GLK-301 for the treatment of signs and symptoms of Dry Eye Disease (DED).

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In March, the company announced the commencement of the phase II clinical program for its third-generation iLink therapy designed to treat keratoconus. Glaukos, on its fiscal third quarter earnings call, confirmed that it is on track to advance its pipeline following the recent clearances of iAccess and iPRIME, while the FDA 510(K) review of iStent infinite is ongoing as GKOS remains focused on a potential FDA clearance for this important product in the second half of 2022. These developments raise our optimism about the stock.

Factor Hurting the Stock

Glaukos’ competitors include medical companies, academic and research institutions, and others that develop new drugs, therapies, medical devices or surgical procedures to treat glaucoma. Thus, intense competition continues to weigh on the company’s overall performance.

Estimates Trend

For 2023, the consensus mark for the bottom line is pegged at a loss of $1.51 per share, narrower than the year-ago quarter’s loss per share of $1.78. The same for 2023 revenues stands at $308.85 million, suggesting growth of 13% from the year-ago reported number.

Other Stocks to Consider

Some other top-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN Quick QuoteAMN - Free Report) , Patterson Companies, Inc. (PDCO Quick QuotePDCO - Free Report) and ShockWave Medical, Inc. .

AMN Healthcare, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 1.1%. AMN’s earnings surpassed the Zacks Consensus Estimate in all four trailing quarters, the average being 15.6%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

AMN Healthcarehas gained 13.8% against the industry’s 32.7% fall in the past year.

Patterson Companies, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 9.6%. PDCO’s earnings surpassed estimates in all the trailing four quarters, the average being 16.5%.

Patterson Companies has lost 1.8% compared with the industry’s 10.5% fall over the past year.

ShockWave Medical, sporting a Zacks Rank of 1 at present, has an estimated growth rate of 44.9% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average being 189.9%.

ShockWave Medical has gained 7.9% against the industry’s 24.4% fall over the past year.