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Here's Why You Should Add Cardiovascular Systems (CSII) Stock

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Cardiovascular Systems, Inc.  is gaining investors’ confidence, owing to impressive portfolio expansion.

The company has outperformed its industry in the past year. The stock has surged 26.2% compared with the industry’s 5.4% rise and the S&P 500’s 2.7% increase in the said period.

This leading medical device manufacturer has a market cap of $1.36 billion. The company develops and commercializes innovative solutions to treat patients suffering from peripheral and coronary arterial diseases, including those with arterial calcium.

Banking on solid prospects, this Zacks Rank #1 (Strong Buy) stock is an attractive pick for investors at the moment.

Market DynamicsCurrently, Cardiovascular Systems firmly stands to gain from several favorable trends existing in the PAD as well CAD market spaces. According to estimates delivered by the American Heart Association (AHA), as many as 8-12 million Americans suffer from peripheral artery disease (PAD). Moreover, an aging population coupled with increasing incidence of diabetes and obesity is likely to propel the prevalence of PAD.

 

Focus on International Business: Internationally, Cardiovascular Systems is progressing well with its partnership with OrbusNeich. Per the terms, OrbusNeich is distributing the company’s coronary and peripheral orbital atherectomy systems in multiple countries in Europe and Southeast Asia, outside the United States and Japan.

Impressive Portfolio ExpansionThe company has long been expanding product portfolio to enhance market reach and versatility. Currently, the company plans to launch more than 20 new products to expand the portfolio in the next five years. Recently, the company has increased R&D expenses by 27%, which is associated with investments in new product development and enrollment in the ECLIPSE clinical trial.

Which Way Are Estimates Treading?

For the fourth quarter of fiscal 2019, the Zacks Consensus Estimate for earnings is pegged at 4 cents, which indicates 63.6% fall from the year-ago quarter’s figure. The same for revenues is pegged at $66 million, calling for year-over-year growth of 11.7% from the prior-year quarter’s number.

For 2019, the Zacks Consensus Estimate for loss is pegged at 1 cent, suggesting 120% year-over-year fall. The same for revenues is pegged at $245.8 million, suggesting 13.3% rise from the prior-year quarter’s level.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Cerner Corp. , Penumbra (PEN - Free Report) and Bruker Corp. (BRKR - Free Report) . While Cerner sports a Zacks Rank #1, Penumbra and Bruker carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cerner’s long-term earnings growth rate is expected to be 13.5%.

Penumbra’s long-term earnings growth rate is projected at 21.5%.

Bruker’s long-term earnings growth rate is estimated at 11.7%.

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