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Teleflex (TFX) Hits New 52-Week High on Solid Growth Drivers

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On June 17, shares of Teleflex Incorporated (TFX - Free Report) scaled a new 52-week high of $326.59, closing the session a tad bit lower at $325.53. The upside followed after a series of recent strategic developments by Teleflex.                                             

Teleflex had a great run on the bourses in the past year. The stock has improved 17.8% compared with the S&P 500 index’s rise of 3.2%. The return is also higher than the broader industry’s decline of 1.4%.

Considering the above factor, theprovider of medical technology products is expected to scale new highs in the upcoming quarters. Further, the company delivered average positive earnings surprise of 2.60% in the trailing four quarters.

Estimate revision for the current year looks impressive. In the past two months, seven estimates have moved up with no downward movement.

Factors Driving the Stock

NeoTract Inclusion Contributes to Top-Line: Investors are currently anticipating a strong integration synergy from NeoTract — the acquired business of Teleflex. This business has already started to contribute to the company’s revenues. NeoTract’s FDA-cleared UroLift System witnessed increased adoption in the first quarter.

Positive study results: The market is upbeat about Teleflex’s announcement of positive data outcomes from five studies of the UroLift System for patients with benign prostatic hyperplasia (BPH). The results highlight the safety and efficacy of the minimally invasive treatment in real-world patient populations.

Vascular Solution Synergy Continues: The acquisition of Vascular Solutions has already started to accelerate growth of Teleflex’s vascular and interventional access product portfolios through expansion into the coronary and peripheral vascular market. The market is optimistic about the portfolios being driven by higher cross-portfolio selling opportunities.

Regulatory Clearance: Investors are optimistic about the prospects of the company since it announced the receipt of premarket approval (PMA) from the FDA for the MANTA Vascular Closure Device. The product is the first commercially available biomechanical vascular closure device designed specifically for large bore femoral arterial access site closure.

Business in Asia Grows Strong: Considering higher demand for its wide product line in emerging economies, Teleflex is currently focusing on expansion in densely populated geographies like Asia. Of late, Asia is generating double-digit year-over-year growth at CER on strong rollout of the company’s Vascular, Interventional Access and Surgical products. From a geographical perspective, business in China has been registering solid growth. Moreover, the company is witnessing strength in Korea and Southeast Asia.

Zacks Rank & Other Key Picks

Teleflex currently carries a Zacks Rank # 2 (Buy).

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