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.
Merit Medical (MMSI) Hits 52-Week High: What's Driving the Stock?
Read MoreHide Full Article
Shares of Merit Medical Systems, Inc. (MMSI - Free Report) scaled a new 52-week high of $77.49 on Apr 13, before closing the session marginally lower at $77.24.
In the past year, this Zacks Rank #3 (Hold) stock has gained 12.9% against a 3% decline of the industry and the S&P 500 composite’s fall of 6.2%.
In the past five years, the company registered earnings growth of 15.1% compared with the industry’s 8.2% rise. The company’s long-term expected growth rate of 11% compares with the industry’s growth projection of 11.9%. Merit Medical’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 19.3%.
Image Source: Zacks Investment Research
Merit Medical is witnessing an upward trend in its stock price, prompted by its strong product portfolio. The optimism led by solid fourth-quarter 2022 performance and potential in its Cardiovascular unit are expected to contribute. However, stiff competition and higher consolidation in the healthcare industry persist.
Let’s delve deeper.
Key Growth Drivers
Strong Product Portfolio: Merit Medical has continued to gain significant momentum on the back of new products and is upbeat about the product pipeline, including radio and electrophysiology products, raising investors’ optimism. The company has several electrophysiology products that are either on track for release or in several others in stages of development.
In March, Merit Medical announced the expansion of its SwiftNINJA Steerable Microcatheter product line, which belongs to its delivery systems portfolio.
Potential in Cardiovascular Unit: Investors are optimistic about the unit’s robust potential. During the fourth quarter of 2022, Merit Medical witnessed a solid uptick in its Cardiovascular unit’s year-over-year revenues on a reported and at constant exchange rate, organic basis. Revenues in the unit’s majority of the product categories, Peripheral Intervention, Cardiac Intervention and Original Equipment Manufacturer, were also robust during the fourth quarter.
Strong Q4 Results: Merit Medical’s robust fourth-quarter 2022 results buoy optimism. The company’s year-over-year uptick in the top and bottom lines was impressive. Robust performances in the United States and outside were impressive. Strong execution and improving customer demand trends pushed up the overall top line, which was encouraging. The company stands to benefit from the execution of its global growth and profitability plan.
Downsides
Higher Consolidation in the Healthcare Industry: Healthcare costs have risen significantly over the past decade. Thus, to provide healthcare solutions at a cheaper rate and eradicate competition, large-cap MedTech behemoths have started consolidating with mid-cap and small-cap companies. This enables the availability of healthcare products at low prices in the market. Per management, such trends compel Merit Medical’s customers to ask for price concessions on its products, which acts against its ongoing business strategies. This may also exert a solid downward pressure on the prices of Merit Medical’s products and reduce the customer base.
Stiff Competition: Merit Medical operates in highly competitive markets, where it faces competition from many companies with greater resources and market presence. The company competes globally in several market areas, including radiology, diagnostics and interventional cardiology. Such resources and market presence may enable the competitors to market competing products more efficiently or at reduced prices to gain market share.
Key Picks
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 10.5% against the industry’s 11.3% decline in the past year.
Henry Schein, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 9.5% compared with the industry’s 3% decline over the past year.
BD, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 7.8%. BDX’s earnings surpassed estimates in all the trailing four quarters, the average beat being 6.5%.
BD has lost 5.5% compared with the industry’s 3% decline over the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Merit Medical (MMSI) Hits 52-Week High: What's Driving the Stock?
Shares of Merit Medical Systems, Inc. (MMSI - Free Report) scaled a new 52-week high of $77.49 on Apr 13, before closing the session marginally lower at $77.24.
In the past year, this Zacks Rank #3 (Hold) stock has gained 12.9% against a 3% decline of the industry and the S&P 500 composite’s fall of 6.2%.
In the past five years, the company registered earnings growth of 15.1% compared with the industry’s 8.2% rise. The company’s long-term expected growth rate of 11% compares with the industry’s growth projection of 11.9%. Merit Medical’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 19.3%.
Image Source: Zacks Investment Research
Merit Medical is witnessing an upward trend in its stock price, prompted by its strong product portfolio. The optimism led by solid fourth-quarter 2022 performance and potential in its Cardiovascular unit are expected to contribute. However, stiff competition and higher consolidation in the healthcare industry persist.
Let’s delve deeper.
Key Growth Drivers
Strong Product Portfolio: Merit Medical has continued to gain significant momentum on the back of new products and is upbeat about the product pipeline, including radio and electrophysiology products, raising investors’ optimism. The company has several electrophysiology products that are either on track for release or in several others in stages of development.
In March, Merit Medical announced the expansion of its SwiftNINJA Steerable Microcatheter product line, which belongs to its delivery systems portfolio.
Potential in Cardiovascular Unit: Investors are optimistic about the unit’s robust potential. During the fourth quarter of 2022, Merit Medical witnessed a solid uptick in its Cardiovascular unit’s year-over-year revenues on a reported and at constant exchange rate, organic basis. Revenues in the unit’s majority of the product categories, Peripheral Intervention, Cardiac Intervention and Original Equipment Manufacturer, were also robust during the fourth quarter.
Strong Q4 Results: Merit Medical’s robust fourth-quarter 2022 results buoy optimism. The company’s year-over-year uptick in the top and bottom lines was impressive. Robust performances in the United States and outside were impressive. Strong execution and improving customer demand trends pushed up the overall top line, which was encouraging. The company stands to benefit from the execution of its global growth and profitability plan.
Downsides
Higher Consolidation in the Healthcare Industry: Healthcare costs have risen significantly over the past decade. Thus, to provide healthcare solutions at a cheaper rate and eradicate competition, large-cap MedTech behemoths have started consolidating with mid-cap and small-cap companies. This enables the availability of healthcare products at low prices in the market. Per management, such trends compel Merit Medical’s customers to ask for price concessions on its products, which acts against its ongoing business strategies. This may also exert a solid downward pressure on the prices of Merit Medical’s products and reduce the customer base.
Stiff Competition: Merit Medical operates in highly competitive markets, where it faces competition from many companies with greater resources and market presence. The company competes globally in several market areas, including radiology, diagnostics and interventional cardiology. Such resources and market presence may enable the competitors to market competing products more efficiently or at reduced prices to gain market share.
Key Picks
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Henry Schein, Inc. (HSIC - Free Report) and Becton, Dickinson and Company (BDX - Free Report) , popularly known as BD.
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 10.5% against the industry’s 11.3% decline in the past year.
Henry Schein, sporting a Zacks Rank #1 at present, has an estimated long-term growth rate of 8.1%. HSIC’s earnings surpassed estimates in three of the trailing four quarters and matched the same in the other, the average beat being 2.9%.
Henry Schein has lost 9.5% compared with the industry’s 3% decline over the past year.
BD, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 7.8%. BDX’s earnings surpassed estimates in all the trailing four quarters, the average beat being 6.5%.
BD has lost 5.5% compared with the industry’s 3% decline over the past year.