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Edwards Lifesciences Corporation (EW), headquartered in Irvine, California, is a global leader in patient-focused medical innovations for structural heart disease and critical care monitoring. With a market cap of $53.34 billion, Edwards Lifesciences stands as a pivotal player in the medical technology industry, dedicated to improving and extending patients' lives. Competing with other prominent firms in the medical technology sector, Edwards Lifesciences' main rivals include Medtronic plc (MDT), which is known for its extensive range of innovative medical therapies and solutions.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Edwards Lifesciences fits this criterion perfectly, signifying its substantial size, stability, and influence in the medical technology industry. The company's global presence and expertise make it a trusted partner for healthcare providers and patients seeking advanced cardiovascular disease solutions.
EW shares are trading 7.9% below their 52-week high of $96.12, which they hit on Mar. 28. EW has declined 4.7% over the past three months, underperforming the Health Care Select Sector SPDR Fund (XLV) 's marginal returns over the same time frame.
In the long term, EW is up 16.1% YTD. However, the shares have declined 3.7% over the past 52 weeks. In comparison, the XLV gained 7% in 2024 and rallied 10.4% over the past year.
However, EW has been trading above its 200-day moving average since late January and 50-day moving average recently.
Edwards Lifesciences reported Q1 earnings on Apr. 25, beating Wall Street’s revenue and EPS expectations. The stock declined marginally on the earnings release day. The company reported earnings of $351.9 million, with net income of $0.58 per share and adjusted earnings of $0.66 per share, surpassing Wall Street expectations of $0.64 per share. The company posted revenue of $1.6 billion, exceeding the anticipated $1.58 billion.
For the current quarter ending in June, Edwards Lifesciences projects earnings per share between $0.67 and $0.71, with revenue ranging from $1.62 billion to $1.7 billion. For the full year, the company forecasts earnings per share between $2.70 and $2.80, with revenue between $6.3 billion and $6.6 billion.
Highlighting the contrast in performance, rival MDT has underperformed both EW and XLV, gaining 3.2% on a YTD basis.
Despite its underperformance relative to XLV, analysts are optimistic about EW's prospects. The stock has a consensus rating of "Moderately Buy" from 25 analysts in coverage. The mean price target of $95.64 reflects an 8% premium over current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
