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.
3 Reasons to Retain Inspire Medical (INSP) Stock for Now
Read MoreHide Full Article
Inspire Medical Systems, Inc. (INSP - Free Report) is well-poised for growth in the coming quarters, courtesy of its focus on research and development (R&D). The optimism led by a solid third-quarter 2023 performance and a few regulatory approvals are expected to contribute further. However, concerns regarding overdependence on the Inspire system and reliance on third parties persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 39.8% against a 7.7% rise of the industry and 12.2% growth of the S&P 500.
The renowned medical technology company focused on obstructive sleep apnea (OSA) has a market capitalization of $4.26 billion. The company projects 52.7% growth for 2024 and expects to maintain its strong performance. Inspire Medical has delivered an earnings surprise of 51.9% for the past four quarters, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Focus on R&D: Inspire Medical’s foundational commitment to driving innovation and improving patient lives fuels its continuous product development, raising our optimism. Per management, the company intends to invest in existing and next-generation technologies to further improve its products and clinical outcomes, optimize patient acceptance and comfort and broaden the patient population that can benefit from Inspire therapy. Recent examples of Inspire Medical’s product innovation include the next generation of the Inspire neurostimulator, which is in development, and an active project to improve the physician programmer.
Regulatory Approvals: We are upbeat about Inspire Medical’s receipt of a slew of FDA approvals over the past few months. On the third quarter of 2023 earnings call, Inspire Medical’s management stated that it is currently working to include the FDA indication expansion into payer policies.
In June 2023, Inspire Medical submitted a premarket approval supplement to the FDA for its next-generation Inspire system.
Strong Q3 Results: Inspire Medical’s solid third-quarter 2023 results buoy our optimism. The company recorded a robust improvement in the top line and strength in year-over-year geographic results. Activation of new U.S. centers and the creation of new U.S. sales territories were also recorded during the reported quarter.
Downsides
Overdependence on Inspire System: Sales of Inspire Medical’s Inspire system accounted for primarily all its revenues for the past few years. The company’s ability to execute its growth strategy and become profitable will, therefore, depend upon the adoption of the Inspire therapy to treat moderate-to-severe OSA in patients who are unable to use or get consistent benefits from continuous positive airway pressure. Management cannot ensure that the company’s Inspire therapy will achieve or maintain broad market acceptance among physicians and patients.
Reliance on Third Parties: Inspire Medical relies on third-party suppliers and contract manufacturers for the raw materials and components used in its Inspire system and to manufacture and assemble its products. These suppliers or third-party contract manufacturers may be unwilling or unable to supply the necessary materials and components or manufacture and assemble their products reliably and at the levels anticipated or required by the market.
Estimate Trend
Inspire Medical has been witnessing a positive estimate revision trend for 2023. In the past 90 days, the Zacks Consensus Estimate for its loss per share has narrowed from $1.71 to $1.48.
The Zacks Consensus Estimate for the company’s fourth-quarter 2023 revenues is pegged at $177.4 million, suggesting a 28.7% improvement from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in all the trailing four quarters, with an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 36% compared with the industry’s 1.1% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 15.2%. CAH’s earnings surpassed estimates in all the trailing four quarters, with an average of 15.7%.
Cardinal Health’s shares have gained 32.9% compared with the industry’s 7.3% rise in the past year.
Integer Holdings, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.
Integer Holdings’ shares have rallied 17.8% against the industry’s 9.2% decline in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Reasons to Retain Inspire Medical (INSP) Stock for Now
Inspire Medical Systems, Inc. (INSP - Free Report) is well-poised for growth in the coming quarters, courtesy of its focus on research and development (R&D). The optimism led by a solid third-quarter 2023 performance and a few regulatory approvals are expected to contribute further. However, concerns regarding overdependence on the Inspire system and reliance on third parties persist.
Over the past year, this Zacks Rank #3 (Hold) stock has lost 39.8% against a 7.7% rise of the industry and 12.2% growth of the S&P 500.
The renowned medical technology company focused on obstructive sleep apnea (OSA) has a market capitalization of $4.26 billion. The company projects 52.7% growth for 2024 and expects to maintain its strong performance. Inspire Medical has delivered an earnings surprise of 51.9% for the past four quarters, on average.
Image Source: Zacks Investment Research
Let’s delve deeper.
Focus on R&D: Inspire Medical’s foundational commitment to driving innovation and improving patient lives fuels its continuous product development, raising our optimism. Per management, the company intends to invest in existing and next-generation technologies to further improve its products and clinical outcomes, optimize patient acceptance and comfort and broaden the patient population that can benefit from Inspire therapy. Recent examples of Inspire Medical’s product innovation include the next generation of the Inspire neurostimulator, which is in development, and an active project to improve the physician programmer.
Regulatory Approvals: We are upbeat about Inspire Medical’s receipt of a slew of FDA approvals over the past few months. On the third quarter of 2023 earnings call, Inspire Medical’s management stated that it is currently working to include the FDA indication expansion into payer policies.
In June 2023, Inspire Medical submitted a premarket approval supplement to the FDA for its next-generation Inspire system.
Strong Q3 Results: Inspire Medical’s solid third-quarter 2023 results buoy our optimism. The company recorded a robust improvement in the top line and strength in year-over-year geographic results. Activation of new U.S. centers and the creation of new U.S. sales territories were also recorded during the reported quarter.
Downsides
Overdependence on Inspire System: Sales of Inspire Medical’s Inspire system accounted for primarily all its revenues for the past few years. The company’s ability to execute its growth strategy and become profitable will, therefore, depend upon the adoption of the Inspire therapy to treat moderate-to-severe OSA in patients who are unable to use or get consistent benefits from continuous positive airway pressure. Management cannot ensure that the company’s Inspire therapy will achieve or maintain broad market acceptance among physicians and patients.
Reliance on Third Parties: Inspire Medical relies on third-party suppliers and contract manufacturers for the raw materials and components used in its Inspire system and to manufacture and assemble its products. These suppliers or third-party contract manufacturers may be unwilling or unable to supply the necessary materials and components or manufacture and assemble their products reliably and at the levels anticipated or required by the market.
Estimate Trend
Inspire Medical has been witnessing a positive estimate revision trend for 2023. In the past 90 days, the Zacks Consensus Estimate for its loss per share has narrowed from $1.71 to $1.48.
The Zacks Consensus Estimate for the company’s fourth-quarter 2023 revenues is pegged at $177.4 million, suggesting a 28.7% improvement from the year-ago quarter’s reported number.
Key Picks
Some better-ranked stocks in the broader medical space are DaVita Inc. (DVA - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
DaVita, sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 18.3%. DVA’s earnings surpassed estimates in all the trailing four quarters, with an average surprise of 36.6%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DaVita’s shares have gained 36% compared with the industry’s 1.1% rise in the past year.
Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 15.2%. CAH’s earnings surpassed estimates in all the trailing four quarters, with an average of 15.7%.
Cardinal Health’s shares have gained 32.9% compared with the industry’s 7.3% rise in the past year.
Integer Holdings, flaunting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 15.8%. ITGR’s earnings surpassed estimates in all the trailing four quarters, the average surprise being 11.9%.
Integer Holdings’ shares have rallied 17.8% against the industry’s 9.2% decline in the past year.