Edwards Lifesciences (EW) closed the most recent trading day at $118.26, moving -1.83% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.08%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 0.42%.
Coming into today, shares of the medical device maker had gained 0.74% in the past month. In that same time, the Medical sector lost 4.1%, while the S&P 500 gained 0.22%.
Investors will be hoping for strength from Edwards Lifesciences as it approaches its next earnings release. In that report, analysts expect Edwards Lifesciences to post earnings of $0.54 per share. This would mark year-over-year growth of 8%. Our most recent consensus estimate is calling for quarterly revenue of $1.35 billion, up 12.96% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Edwards Lifesciences. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% higher. Edwards Lifesciences is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Edwards Lifesciences currently has a Forward P/E ratio of 47.53. This represents a premium compared to its industry’s average Forward P/E of 44.02.
Meanwhile, EW’s PEG ratio is currently 3.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Medical – Instruments was holding an average PEG ratio of 2.52 at yesterday’s closing price.
The Medical – Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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