Back to top

Image: Bigstock

Here's Why You Should Hold on to Nevro (NVRO) Stock for Now

Read MoreHide Full Article

Nevro Corp. (NVRO - Free Report) is well-poised for growth, backed by strong international presence, solid prospects in the Spinal Cord Stimulation (SCS) market and commitment toward innovation. However, intense competition remains a concern.

The stock currently carries a Zacks Rank #3 (Hold).

Price Performance

Shares of Nevro have surged 52.7%, against the industry’s decline of 6.5% in a year’s time. Further, the S&P 500 Index rallied 1.5%.

 



What’s Deterring the Stock?

Intense competition in the SCS market remains a woe. Per management, the primary competitive factors are company brand recognition, clinical research leadership, pricing and reimbursement et al.

Factors to Bolster Nevro

Nevro continues to benefit from sturdy international foothold, thereby driving the company’s overall performance. Per management, growth in Europe is anticipated to improve worldwide revenues in 2019.

Further, robust prospects in the SCS market have been favoring the company over a considerable period of time. Aging demographics, high cost related to therapy, strict regulatory approvals and an excessive reliance on the traditional SCS therapy are the major factors driving the global SCS market.

Per a Market Data Forecast report, the global SCS market is estimated to reach $2,827.4 million at a CAGR of 8.6% (between 2018 and 2023).

Consistent focus on innovation has been crucial in bolstering the company’s overall performance.

Strong outlook for 2019 instills optimism in the stock. Notably, the company expects worldwide revenues between $368 million and $374 million.

Which Way Are Estimates Headed?

For 2019, the Zacks Consensus Estimate for revenues is pegged at $374.2 million, indicating a decline of 3.4% from the year-ago reported figure. The same for adjusted loss per share stands at $3.87.

Key Picks

Some better-ranked stocks from the broader medical space are Baxter International Inc. (BAX - Free Report) , Amedisys, Inc. (AMED - Free Report) and CONMED Corporation (CNMD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Baxter has a long-term earnings growth rate of 12.8%.

Amedisys has a long-term earnings growth rate of 16.3%.

CONMED has a long-term earnings growth rate 14.9%.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Published in