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Here's Why You Should Hold CONMED Stock in Your Portfolio
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CONMED Corporation (CNMD - Free Report) has topped estimates in the trailing four quarters. Currently, the company has a market capitalization of approximately $2.06 billion. However, cutthroat competition in the MedTech space are deterring prospects for the stock.
The Zacks Rank #3 (Hold) stock has rallied 36.3% in a year’s time compared with the industry’s rise of 14.2%. The current level is significantly higher than the S&P 500’s return of 13.3%.
Here we take a quick look at the major headwinds that are plaguing CONMEDand discuss the factors that ensure near-term recovery.
Why Should You Retain CONMED?
CONMED offers a broad line of surgical products. The company’s portfolio consists of several new devices in the Orthopedic, Laparoscopic, Robotic, Open Surgery, Gastroenterology, Pulmonary and Cardiology sections. Innovative products like Hi-Fi Tape and Hi-Fi suture interface represents a critical component of repair security in rotator cuff repair space.
Earlier in 2018, CONMED announced that the company’s newly-introduced MicroFree power system and the Anchor retrieval system received positive feedbacks from respective markets.
CONMED is benefiting from the increasing trend of using minimally invasive techniques as a large percentage of the company’s products are designed for these procedures. The use of minimally invasive surgery lowers costs by reducing patient trauma, recovery time and the length of hospitalization.
This will drive CONMED’s business and boost the top line in the long run. A research report by Markets And Markets suggests that the global minimally invasive surgical instruments market is estimated to reach $21.47 billion by 2021 from $13.89 Billion in 2016, at a CAGR of 9.1%. We believe solid market trends like these will fortify the company’s foothold in the niche space.
What’s Deterring the Stock?
CONMED operates in a highly competitive environment that includes competition from companies like Johnson & Johnson, Medtronic, Smith & Nephew, Stryker Corporation and others. These organizations may have greater resources as well as larger research and development budgets compared with CONMED. Furthermore, the company falls behind the larger orthopedic players in product bundling arrangements, which provides them a competitive edge.
Which Way are the Estimates Treading?
Unhindered by persistent issues, analysts are optimistic about CONMED.
For the current quarter, the Zacks Consensus Estimate for earnings is pegged at 45 cents, reflecting growth of 7.1% on a year-over-year basis. The same for the revenues is pegged at $198.9 million, reflecting growth of 4.6% year over year.
For 2018, the Zacks Consensus Estimate for revenues is pegged at $843.78 million, reflecting growth of 6%. The same for adjusted earnings is pegged at $2.17, indicating year-over-year rise of 14.8%.
Want More from the MedTech Space?
A few better-ranked stocks in the broader MedTech space are Wright Medical Group N.V. , Inogen, Inc (INGN - Free Report) and Veeva Systems (VEEV - Free Report) .
Inogen’s long-term earnings growth rate is projected at 24.5%. The stock carries a Zacks Rank #2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock sports a Zacks Rank #1.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Here's Why You Should Hold CONMED Stock in Your Portfolio
CONMED Corporation (CNMD - Free Report) has topped estimates in the trailing four quarters. Currently, the company has a market capitalization of approximately $2.06 billion. However, cutthroat competition in the MedTech space are deterring prospects for the stock.
The Zacks Rank #3 (Hold) stock has rallied 36.3% in a year’s time compared with the industry’s rise of 14.2%. The current level is significantly higher than the S&P 500’s return of 13.3%.
Here we take a quick look at the major headwinds that are plaguing CONMEDand discuss the factors that ensure near-term recovery.
Why Should You Retain CONMED?
CONMED offers a broad line of surgical products. The company’s portfolio consists of several new devices in the Orthopedic, Laparoscopic, Robotic, Open Surgery, Gastroenterology, Pulmonary and Cardiology sections. Innovative products like Hi-Fi Tape and Hi-Fi suture interface represents a critical component of repair security in rotator cuff repair space.
Earlier in 2018, CONMED announced that the company’s newly-introduced MicroFree power system and the Anchor retrieval system received positive feedbacks from respective markets.
CONMED is benefiting from the increasing trend of using minimally invasive techniques as a large percentage of the company’s products are designed for these procedures. The use of minimally invasive surgery lowers costs by reducing patient trauma, recovery time and the length of hospitalization.
This will drive CONMED’s business and boost the top line in the long run. A research report by Markets And Markets suggests that the global minimally invasive surgical instruments market is estimated to reach $21.47 billion by 2021 from $13.89 Billion in 2016, at a CAGR of 9.1%. We believe solid market trends like these will fortify the company’s foothold in the niche space.
What’s Deterring the Stock?
CONMED operates in a highly competitive environment that includes competition from companies like Johnson & Johnson, Medtronic, Smith & Nephew, Stryker Corporation and others. These organizations may have greater resources as well as larger research and development budgets compared with CONMED. Furthermore, the company falls behind the larger orthopedic players in product bundling arrangements, which provides them a competitive edge.
Which Way are the Estimates Treading?
Unhindered by persistent issues, analysts are optimistic about CONMED.
For the current quarter, the Zacks Consensus Estimate for earnings is pegged at 45 cents, reflecting growth of 7.1% on a year-over-year basis. The same for the revenues is pegged at $198.9 million, reflecting growth of 4.6% year over year.
For 2018, the Zacks Consensus Estimate for revenues is pegged at $843.78 million, reflecting growth of 6%. The same for adjusted earnings is pegged at $2.17, indicating year-over-year rise of 14.8%.
Want More from the MedTech Space?
A few better-ranked stocks in the broader MedTech space are Wright Medical Group N.V. , Inogen, Inc (INGN - Free Report) and Veeva Systems (VEEV - Free Report) .
Wright Medical has a long-term expected earnings growth rate of 11%. The stock carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Inogen’s long-term earnings growth rate is projected at 24.5%. The stock carries a Zacks Rank #2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock sports a Zacks Rank #1.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>