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Glaukos Stock Soars 59.2% Year to Date: What's Behind the Rally?
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Glaukos Corporation (GKOS - Free Report) has witnessed strong momentum in the year-to-date period. Shares of the company have surged 59.2% compared with the 9.9% growth of the industry. The S&P 500 composite has risen 21% during the said time frame.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.
Headquartered in San Clemente, CA, Glaukos is an ophthalmic medical technology and pharmaceutical company. It is focused on developing and commercializing novel surgical devices and sustained pharmaceutical therapies designed to treat glaucoma. The company’s flagship iStent is the first FDA-approved surgical device available for insertion in conjunction with cataract surgery.
Image Source: Zacks Investment Research
Catalysts Driving Growth
The recent rally in Glaukos' stock can be attributed to the strength of its flagship iStent product, fueled by a strong first-half performance in 2024 and promising business prospects. Investors are particularly optimistic about the continued demand across its international glaucoma and Corneal Health franchises.
A key driver has been the expanding utilization of the iStent infinite among glaucoma patients who have failed medical and surgical therapy, thanks to clinical education efforts and an improving market access environment. The draft Local Coverage Determination (LCDs) issued by five of the seven Medicare Administrative Contractor (MACs), which established coverage for the iStent infinite, are expected to enhance patient access and further boost demand.
Glaukos exceeded revenue expectations in the first half of 2024, driven by robust product demand, prompting the company to raise its full-year sales guidance to $370-$376 million from the prior estimate of $357-$365 million. This guidance increase has contributed to the stock’s upward momentum.
Growth in the glaucoma franchise, particularly from the iStent portfolio, has been a key contributor to the stock’s performance. The second-half launch of the iDose TR, supported by a permanent J-code for iDose TR, J7355, which became effective on July 1, is expected to further drive sales growth by increasing patient access.
Additionally, Glaukos is making significant progress with its product pipeline. It is on track to submit an NDA for its corneal cross-linking therapy, Epioxa, by the end of 2024, with the second Phase 3 pivotal trial nearing completion. The company also plans to initiate a pivotal study for its next-generation iDose therapy, iDose TREX, by year-end, positioning it for long-term growth.
International expansion continues to be a priority for Glaukos. In the first half of 2024, its International Glaucoma franchise delivered record sales of $51.4 million, representing 18.3% year-over-year growth. The company is focused on scaling up its global infrastructure and establishing MIGS as a standard of care in multiple regions, supporting its long-term growth prospects.
Risk Factors
A potential risk for investors is that Glaukos relies on a limited number of third-party suppliers for components of the iStent, iStent inject models and pipeline products. If any of these suppliers were to delay or stop providing components or drugs or change their terms, Glaukos may face challenges in securing alternative supply sources.
A Look at Estimates
The Zacks Consensus Estimate for Glaukos’ 2024 and 2025 bottom line projects a 3.5% and 37.3% year-over-year improvement, respectively, to a loss of $2.19 and $1.37 per share.
In the past 30 days, the Zacks Consensus Estimate for the company's 2024 loss has remained constant at $2.19 per share.
Revenues for 2024 and 2025 are anticipated to rise 18.8% and 26.2%, respectively, to $373.99 million and $471.93 million on a year-over-year basis.
Some better-ranked stocks in the broader medical space are Tenet HealthCare(THC - Free Report) , ATI Physical Therapy (ATIP - Free Report) and Aveanna Healthcare (AVAH - Free Report) . While Tenet HealthCare carries a Zacks Rank #1 (Strong Buy), ATI Physical Therapy and Aveanna Healthcare carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tenet HealthCare has an estimated long-term growth rate of 18.3%. THC's earnings surpassed estimates in each of the trailing four quarters, with the average being 58.5%.
Tenet HealthCare has gained 119.9% compared with the industry's 48.6% growth year to date.
ATI Physical Therapy's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.25%.
ATIP's shares have gained 5.5% year to date compared with the industry’s 18.6% growth.
Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 47.5%.
AVAH's shares have surged 104.5% year to date compared with the industry’s 15.7% growth.
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Glaukos Stock Soars 59.2% Year to Date: What's Behind the Rally?
Glaukos Corporation (GKOS - Free Report) has witnessed strong momentum in the year-to-date period. Shares of the company have surged 59.2% compared with the 9.9% growth of the industry. The S&P 500 composite has risen 21% during the said time frame.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.
Headquartered in San Clemente, CA, Glaukos is an ophthalmic medical technology and pharmaceutical company. It is focused on developing and commercializing novel surgical devices and sustained pharmaceutical therapies designed to treat glaucoma. The company’s flagship iStent is the first FDA-approved surgical device available for insertion in conjunction with cataract surgery.
Image Source: Zacks Investment Research
Catalysts Driving Growth
The recent rally in Glaukos' stock can be attributed to the strength of its flagship iStent product, fueled by a strong first-half performance in 2024 and promising business prospects. Investors are particularly optimistic about the continued demand across its international glaucoma and Corneal Health franchises.
A key driver has been the expanding utilization of the iStent infinite among glaucoma patients who have failed medical and surgical therapy, thanks to clinical education efforts and an improving market access environment. The draft Local Coverage Determination (LCDs) issued by five of the seven Medicare Administrative Contractor (MACs), which established coverage for the iStent infinite, are expected to enhance patient access and further boost demand.
Glaukos exceeded revenue expectations in the first half of 2024, driven by robust product demand, prompting the company to raise its full-year sales guidance to $370-$376 million from the prior estimate of $357-$365 million. This guidance increase has contributed to the stock’s upward momentum.
Growth in the glaucoma franchise, particularly from the iStent portfolio, has been a key contributor to the stock’s performance. The second-half launch of the iDose TR, supported by a permanent J-code for iDose TR, J7355, which became effective on July 1, is expected to further drive sales growth by increasing patient access.
Additionally, Glaukos is making significant progress with its product pipeline. It is on track to submit an NDA for its corneal cross-linking therapy, Epioxa, by the end of 2024, with the second Phase 3 pivotal trial nearing completion. The company also plans to initiate a pivotal study for its next-generation iDose therapy, iDose TREX, by year-end, positioning it for long-term growth.
International expansion continues to be a priority for Glaukos. In the first half of 2024, its International Glaucoma franchise delivered record sales of $51.4 million, representing 18.3% year-over-year growth. The company is focused on scaling up its global infrastructure and establishing MIGS as a standard of care in multiple regions, supporting its long-term growth prospects.
Risk Factors
A potential risk for investors is that Glaukos relies on a limited number of third-party suppliers for components of the iStent, iStent inject models and pipeline products. If any of these suppliers were to delay or stop providing components or drugs or change their terms, Glaukos may face challenges in securing alternative supply sources.
A Look at Estimates
The Zacks Consensus Estimate for Glaukos’ 2024 and 2025 bottom line projects a 3.5% and 37.3% year-over-year improvement, respectively, to a loss of $2.19 and $1.37 per share.
In the past 30 days, the Zacks Consensus Estimate for the company's 2024 loss has remained constant at $2.19 per share.
Revenues for 2024 and 2025 are anticipated to rise 18.8% and 26.2%, respectively, to $373.99 million and $471.93 million on a year-over-year basis.
Glaukos Corporation Price
Glaukos Corporation price | Glaukos Corporation Quote
Key Picks
Some better-ranked stocks in the broader medical space are Tenet HealthCare (THC - Free Report) , ATI Physical Therapy (ATIP - Free Report) and Aveanna Healthcare (AVAH - Free Report) . While Tenet HealthCare carries a Zacks Rank #1 (Strong Buy), ATI Physical Therapy and Aveanna Healthcare carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tenet HealthCare has an estimated long-term growth rate of 18.3%. THC's earnings surpassed estimates in each of the trailing four quarters, with the average being 58.5%.
Tenet HealthCare has gained 119.9% compared with the industry's 48.6% growth year to date.
ATI Physical Therapy's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.25%.
ATIP's shares have gained 5.5% year to date compared with the industry’s 18.6% growth.
Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 47.5%.
AVAH's shares have surged 104.5% year to date compared with the industry’s 15.7% growth.