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Inogen Rides on Solid Product Portfolio Amid Forex Woes
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On Dec 11, we issued an updated research report on leading medical devices company Inogen Inc. (INGN - Free Report) . The stock carries a Zacks Rank #3 (Hold).
Inogen's price movement over the past six months has been favourable. The company represented a return of almost 33.4%, better than the industry's rally of 5.2%. The current level is also higher than the S&P 500’s return of 9.3% over the same time frame.
Inogen’s expanding product portfolio is a key catalyst. The company provides oxygen-concentrator solutions for portable and stationary use. Inogen’s flagship product — One G4 — is a single-solution portable oxygen concentrator (POC).
Further, Inogen One G3 POC provides mobility and independence to oxygen therapy users. This platform is the lightest continuous flow oxygen concentrator in the market and consumes less power than competitive devices.
Solid business-to-business sales performance is another reason for the stock's solid performance. Notably, Inogen has a market cap of $2.47 billion. The company’s direct-to-customer business model has lent it a leading position in the oxygen therapy market. The direct-to-consumer model provides companies an opportunity to build a unique brand relationship directly with customers. In an effort to drive growth in the direct-to-consumer business, the company announced that it has secured an additional facility in Cleveland, OH.
On the flip side, foreign exchange headwinds are a concern. Inogen generates a significant portion of revenues from the International market. Management expects international revenues to be lumpy, thanks to the timing and size of the distributor. Adverse foreign currency exchange rates are likely to impede revenue growth in the near term due to the strengthening of the U.S. dollar against the Euro and other foreign currencies.
In the Long-term Oxygen Therapy (LTOT) market, POC adoption continues to witness significant challenges. This is primarily due to the lack of awareness among consumers about the benefits of POC devices, higher upfront cost compared with traditional delivery model and reluctance of home equipment medical providers to support POC adoption.
We believe that lack of awareness ensures higher cost related to sales & marketing that can mar profits. We believe that these headwinds related to POC adoption are major concerns that can hurt Inogen’s prospects in the long haul.
Key Picks
A few better-ranked medical stocks are athenahealth, Inc. , Align Technology, Inc. (ALGN - Free Report) and Myriad Genetics, Inc. (MYGN - Free Report) .
athenahealth has a long-term expected earnings growth rate of 22.3%.
Align Technology has a long-term expected earnings growth rate of 28.9%.
Myriad Genetics has a long-term expected earnings growth rate of 15%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Inogen Rides on Solid Product Portfolio Amid Forex Woes
On Dec 11, we issued an updated research report on leading medical devices company Inogen Inc. (INGN - Free Report) . The stock carries a Zacks Rank #3 (Hold).
Inogen's price movement over the past six months has been favourable. The company represented a return of almost 33.4%, better than the industry's rally of 5.2%. The current level is also higher than the S&P 500’s return of 9.3% over the same time frame.
Inogen’s expanding product portfolio is a key catalyst. The company provides oxygen-concentrator solutions for portable and stationary use. Inogen’s flagship product — One G4 — is a single-solution portable oxygen concentrator (POC).
Further, Inogen One G3 POC provides mobility and independence to oxygen therapy users. This platform is the lightest continuous flow oxygen concentrator in the market and consumes less power than competitive devices.
Solid business-to-business sales performance is another reason for the stock's solid performance. Notably, Inogen has a market cap of $2.47 billion. The company’s direct-to-customer business model has lent it a leading position in the oxygen therapy market. The direct-to-consumer model provides companies an opportunity to build a unique brand relationship directly with customers. In an effort to drive growth in the direct-to-consumer business, the company announced that it has secured an additional facility in Cleveland, OH.
Inogen, Inc Price
Inogen, Inc Price | Inogen, Inc Quote
On the flip side, foreign exchange headwinds are a concern. Inogen generates a significant portion of revenues from the International market. Management expects international revenues to be lumpy, thanks to the timing and size of the distributor. Adverse foreign currency exchange rates are likely to impede revenue growth in the near term due to the strengthening of the U.S. dollar against the Euro and other foreign currencies.
In the Long-term Oxygen Therapy (LTOT) market, POC adoption continues to witness significant challenges. This is primarily due to the lack of awareness among consumers about the benefits of POC devices, higher upfront cost compared with traditional delivery model and reluctance of home equipment medical providers to support POC adoption.
We believe that lack of awareness ensures higher cost related to sales & marketing that can mar profits. We believe that these headwinds related to POC adoption are major concerns that can hurt Inogen’s prospects in the long haul.
Key Picks
A few better-ranked medical stocks are athenahealth, Inc. , Align Technology, Inc. (ALGN - Free Report) and Myriad Genetics, Inc. (MYGN - Free Report) .
Notably, athenahealth, Align Technology and Myriad Genetics sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
athenahealth has a long-term expected earnings growth rate of 22.3%.
Align Technology has a long-term expected earnings growth rate of 28.9%.
Myriad Genetics has a long-term expected earnings growth rate of 15%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>