Edwards Lifesciences Crafts 52-Week High - Analyst Blog

Shares of Edwards Lifesciences Corp. (EW) hit a new 52-week high of $86.52 on May 13, eventually closing at $86.11. The closing share price represents an extraordinary one-year return of 20.3% and a year-to-date return of 30.6%. Average volume of shares traded over the last three months was 1,237K.

This Zacks Rank #3 (Hold) company has a market cap of $9.08 billion with long-term earnings growth expectations of 15.2%.

Growth Drivers

Edwards Lifesciences delivered mixed first-quarter 2014 results with a bottom-line beat and a top-line miss.

However, for all good reasons, the company has managed to be in the news since the beginning of 2014. Edwards Lifesciences kick-started the year with the receipt of CE mark for its SAPIEN 3 in January and SAPIEN XT in February followed by the INTUITY Elite Valve System winning the same in April.The company is also positive on the expected U.S. Food and Drug Administration (FDA) sanction of the Sapien XT valve by the second quarter of this year.

In addition, enrollment of 1,000 intermediate risk patients in the U.S. SAPIEN 3 trial is on track and is expected to be completed by the end of this year. Till date, the company has launched many new products, demonstrated strong clinical data and made significant progress on several key developments indicating sustainable future growth.

Outside the U.S., Transcatheter Heart Valves (THV) sales grew 33% in the last reported quarter, driven by exceptionally strong growth in Europe and the ongoing rollout of SAPIEN XT in Japan. Edwards expects the positive procedural growth trends in Europe to further strengthen this year.

With the favorable court ruling against Medtronic Inc. (MDT) announced in April 2014 and next-generation transcatheter valve SAPIEN XT in the company's pipeline, Edwards Lifesciences is well positioned to continue dominating and consolidating its foothold in the U.S. transcatheter aortic heart valve market.

Other Stocks to Consider

Better-ranked medical instruments stocks that are worth a look include Masimo Corporation (MASI) and Accuray Incorporated (ARAY). All of these three stocks carry a Zacks Rank #2 (Buy).

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