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Medical Product Stocks Nov 7 Earnings Lineup: ALGN NVRO, HAE

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With Q3 earnings reports already out from more than 72.8% of the S&P 500 members (364 companies), our latest Earnings Outlook has exhibited an improving trend so far. Proceeding to the last lap of the earnings reporting cycle, we are further assured about this quarter being the first to witness earnings growth after five back-to-back quarters of earnings declines for the S&P 500 index.

Total earnings for these 364 companies are up 1.6% year over year on 1.6% higher revenues, with 72.3% beating EPS estimates and 54.7% exceeding top-line expectations. As per the report, Medical is one of the 12 broader sectors among the 16 Zacks sectors which have recorded earnings growth so far (75.5% of the members have reported results already). The sector has witnessed 6% earnings growth on the back of 7.6% higher revenues in the third quarter.

What’s in Store for the Med-Product Space?

Medical product, a niche area under the medical device subcategory within the broader Medical sector, holds a lot of promise at the moment thanks to the temporary two-year suspension of the controversial 2.3% medical device excise tax which took a toll on the entire MedTech industry since its enactment in 2013. In addition, the recent change in consumer demand and market dynamics led to a dramatic transformation in the entire healthcare system. This is evident from the growing prevalence of minimally invasive surgeries, rising demand for liquid biopsy tests, use of IT for ensuring quick and improved patient care, and the shift of the payment system to a value-based model among others.

Let’s take a look at the major Medical Product stocks slated to release their quarterly reports on Nov 7:

Align Technology Inc. (ALGN - Free Report)

Based in California, this medical product company manufactures and markets a system of clear aligner therapy, intra-oral scanners and CAD/CAM (computer-aided design and computer-aided manufacturing) digital services used in dentistry, orthodontics, and dental records storage. Align’s recent product development, balanced growth observed across all channels and its consistent focus in international markets to drive growth bolster our confidence in the stock. The company is expected to report third-quarter 2016 numbers on Nov 7.

However, our proven model does not conclusively show that Align is likely to beat earnings this quarter as along with a Zacks Rank #3 (Hold), it has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 51 cents. We note that while a favorable Zacks Rank increases the predictive power of the ESP, a 0.00% makes surprise prediction difficult. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

ALIGN TECH INC Price and EPS Surprise

ALIGN TECH INC Price and EPS Surprise | ALIGN TECH INC Quote

Nevro Corp. (NVRO - Free Report)

This is a popular name in the field of neuromodulation. The company particularly works for the treatment of chronic pain in the U.S., Europe, and Australia. It offers the Senza system, a spinal cord stimulation system that delivers its proprietary HF10 therapy. The company is scheduled to report third-quarter 2016 numbers on Nov 7. Nevro currently has an Earnings ESP of 0.00% along with a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Note that stocks with a Zacks Rank #1, 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

NEVRO CORP Price and EPS Surprise

NEVRO CORP Price and EPS Surprise | NEVRO CORP Quote

Haemonetics Corporation (HAE - Free Report)

Haemonetics provides blood management solutions to customers encompassing blood and plasma collectors, hospitals and health care providers globally. The company expects to return to positive top-line growth banking on its growth drivers like Plasma, TEG, hemostasis management as well as profitable growth in China. However, product recall of its leukoreduction filter may pose a hurdle.

Haemonetics currently has a Zacks Rank #2, which increases the predictive power of the ESP. However, its 0.00% ESP makes surprise prediction difficult. The company is scheduled to report second-quarter fiscal 2017 numbers on Nov 7.

HAEMONETICS CP Price and EPS Surprise

HAEMONETICS CP Price and EPS Surprise | HAEMONETICS CP Quote

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