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Here's Why You Should Retain Glaukos Stock in Your Portfolio Now
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Glaukos Corporation (GKOS - Free Report) is well-poised for growth on the back of favorable clinical trial results and a robust product pipeline. However, stiff competition is a concern.
Shares of this Zacks Rank #3 (Hold) company have risen 59% year to date compared with the industry’s 5.3% growth. The S&P 500 Index has also increased 19.5% in the same time frame.
Glaukos, with a market capitalization of $7.2 billion, is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 4% for 2024, followed by 35.6% improvement in 2025. It expects to maintain its strong performance in terms of revenues as well.
The company has a trailing four-quarter average negative earnings surprise of 5.62%.
Image Source: Zacks Investment Research
Key Catalysts
Strong Product Demand: The increase in Glaukos' share price is largely due to the success of its leading product, iStent. The company showed strong performance in the first half of 2024 and has a positive business outlook, which has boosted investors’ confidence. The strong demand for Glaukos' international glaucoma and Corneal Health products further enhances investors’ optimism.
In the second-quarter earnings call, Glaukos emphasized the growing use of iStent infinite for glaucoma patients, especially those who have not responded to other treatments. This growth is driven by ongoing clinical education and better market access. Additionally, five out of seven Medicare Administrative Contractors have issued draft local coverage determinations for iStent infinite. This is expected to improve patient access.
Glaukos’ revenues surpassed estimates in the first half of 2024 due to high demand for its products. Consequently, the company raised its full-year revenue guidance to $370-$376 million from the previous $357-$365 million, contributing to the rise in its share price.
Expanding Product Portfolio: The iStent portfolio significantly boosted Glaukos' glaucoma franchise revenues in the first half of 2024. Additionally, the launch of iDose TR in the second quarter is expected to further enhance revenue growth in the latter half of the year. With a permanent J-code for iDose TR effective from July 1, patient access is likely to increase, driving future sales.
Glaukos continues to invest in its product pipeline, including its corneal cross-linking therapy, Epioxa, which is expected to undergo NDA submission by the end of 2024. Epioxa is advancing through its second Phase 3 pivotal trial. The company is also preparing for a pivotal study on its next-generation iDose therapy, iDose TREX, set to begin by the end of 2024. These initiatives are poised to drive long-term growth.
Internationally, Glaukos is focused on expanding its footprint. The company sells its products through subsidiaries in 17 countries and independent distributors in other markets. Glaukos' international glaucoma franchise reported record sales of $51.4 million in the first half of 2024, reflecting 18.3% year-over-year growth. This global expansion is expected to continue to support the company's long-term growth trajectory.
What’s Hurting GKOS?
Glaukos currently depends on a limited number of third-party suppliers, including some sole suppliers, for components of the iStent, iStent inject models and other pipeline products. If any of these suppliers fail to provide sufficient quantities of components or drugs in a timely manner or on acceptable terms, Glaukos would need to seek alternative sources.
The production of the iStent, iStent inject models, and other products in development relies on a select group of third-party suppliers, sometimes exclusively. If these suppliers do not deliver the necessary components or drugs promptly or on acceptable terms, Glaukos would have to find other suppliers to maintain its production line.
The bottom-line estimate for GKOS is pegged at a loss of $2.18 per share for 2024, which narrowed 3 cents in the past 60 days. The Zacks Consensus Estimate for 2024 revenues is pinned at $374 million, indicating growth of 18.8% from the top line recorded in 2023.
The Cooper Companies has a long-term growth rate of 11.4%. Its earnings surpassed estimates in three of the trailing four quarters and met the same once, delivering an average surprise of 3.87%.
COO’s shares have risen 11.5% year to date against the industry’s 2.5% decline.
Quest Diagnostics has an estimated long-term growth rate of 6.2%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%.
Quest Diagnostics’ shares have risen 6.6% so far this year compared with the industry’s 14.9% growth.
Baxter’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.74%.
BAX’s shares have lost 7.4% so far this year against the industry’s 10.7% growth.
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Here's Why You Should Retain Glaukos Stock in Your Portfolio Now
Glaukos Corporation (GKOS - Free Report) is well-poised for growth on the back of favorable clinical trial results and a robust product pipeline. However, stiff competition is a concern.
Shares of this Zacks Rank #3 (Hold) company have risen 59% year to date compared with the industry’s 5.3% growth. The S&P 500 Index has also increased 19.5% in the same time frame.
Glaukos, with a market capitalization of $7.2 billion, is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 4% for 2024, followed by 35.6% improvement in 2025. It expects to maintain its strong performance in terms of revenues as well.
The company has a trailing four-quarter average negative earnings surprise of 5.62%.
Image Source: Zacks Investment Research
Key Catalysts
Strong Product Demand: The increase in Glaukos' share price is largely due to the success of its leading product, iStent. The company showed strong performance in the first half of 2024 and has a positive business outlook, which has boosted investors’ confidence. The strong demand for Glaukos' international glaucoma and Corneal Health products further enhances investors’ optimism.
In the second-quarter earnings call, Glaukos emphasized the growing use of iStent infinite for glaucoma patients, especially those who have not responded to other treatments. This growth is driven by ongoing clinical education and better market access. Additionally, five out of seven Medicare Administrative Contractors have issued draft local coverage determinations for iStent infinite. This is expected to improve patient access.
Glaukos’ revenues surpassed estimates in the first half of 2024 due to high demand for its products. Consequently, the company raised its full-year revenue guidance to $370-$376 million from the previous $357-$365 million, contributing to the rise in its share price.
Expanding Product Portfolio: The iStent portfolio significantly boosted Glaukos' glaucoma franchise revenues in the first half of 2024. Additionally, the launch of iDose TR in the second quarter is expected to further enhance revenue growth in the latter half of the year. With a permanent J-code for iDose TR effective from July 1, patient access is likely to increase, driving future sales.
Glaukos continues to invest in its product pipeline, including its corneal cross-linking therapy, Epioxa, which is expected to undergo NDA submission by the end of 2024. Epioxa is advancing through its second Phase 3 pivotal trial. The company is also preparing for a pivotal study on its next-generation iDose therapy, iDose TREX, set to begin by the end of 2024. These initiatives are poised to drive long-term growth.
Internationally, Glaukos is focused on expanding its footprint. The company sells its products through subsidiaries in 17 countries and independent distributors in other markets. Glaukos' international glaucoma franchise reported record sales of $51.4 million in the first half of 2024, reflecting 18.3% year-over-year growth. This global expansion is expected to continue to support the company's long-term growth trajectory.
What’s Hurting GKOS?
Glaukos currently depends on a limited number of third-party suppliers, including some sole suppliers, for components of the iStent, iStent inject models and other pipeline products. If any of these suppliers fail to provide sufficient quantities of components or drugs in a timely manner or on acceptable terms, Glaukos would need to seek alternative sources.
The production of the iStent, iStent inject models, and other products in development relies on a select group of third-party suppliers, sometimes exclusively. If these suppliers do not deliver the necessary components or drugs promptly or on acceptable terms, Glaukos would have to find other suppliers to maintain its production line.
Glaukos Corporation Price
Glaukos Corporation price | Glaukos Corporation Quote
Estimate Trend
The bottom-line estimate for GKOS is pegged at a loss of $2.18 per share for 2024, which narrowed 3 cents in the past 60 days. The Zacks Consensus Estimate for 2024 revenues is pinned at $374 million, indicating growth of 18.8% from the top line recorded in 2023.
Stocks to Consider
Some better-ranked stocks in the broader medical space are The Cooper Companies (COO - Free Report) , Quest Diagnostics (DGX - Free Report) and Baxter International (BAX - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Cooper Companies has a long-term growth rate of 11.4%. Its earnings surpassed estimates in three of the trailing four quarters and met the same once, delivering an average surprise of 3.87%.
COO’s shares have risen 11.5% year to date against the industry’s 2.5% decline.
Quest Diagnostics has an estimated long-term growth rate of 6.2%. DGX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.31%.
Quest Diagnostics’ shares have risen 6.6% so far this year compared with the industry’s 14.9% growth.
Baxter’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.74%.
BAX’s shares have lost 7.4% so far this year against the industry’s 10.7% growth.