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Irvine, California-headquartered Edwards Lifesciences Corporation (EW), with a market cap of $40.5 billion, is a global leader in patient-focused medical innovations for structural heart disease and critical care monitoring.
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 devices industry. The company is a global leader in heart valve systems, known for its innovation and strong R&D investment, enhancing its market position and reputation.
Despite the notable strengths, Edwards Lifesciences is trading 29% below its 52-week high of $96.12, which it hit on Mar. 28. EW has declined 21.6% over the past three months, underperforming the iShares U.S. Medical Devices ETF’s (IHI) 5.5% returns over the same time frame.
In the long term, EW is down 10.5% on a YTD basis and has plunged 8.8% over the past 52 weeks. In comparison, the IHI is up 9.6% in 2024 and has rallied 15.4% over the past year.
EW stock has been trading below its 50-day and 200-day moving averages since July, indicating a bearish momentum.
Over the past year, Edwards Lifesciences has struggled due to slower growth in its transcatheter aortic valve replacement (TAVR) segment. Investor sentiments are further dampened by the sale of the company's Critical Care unit.
On Aug. 22, EW stock gained over 1% following Citigroup Inc.’s (C) initiation of a 90-day positive watch on the stock.
Moreover, the stock plunged a whopping 31.3% on Jul.25 following its Q2 earnings report, where revenue came in at $1.4 billion, well below analysts' expectations of $1.7 billion. Investor concerns deepened as the company lowered its TAVR sales forecast.
Edwards Lifesciences competes with major firms like Medtronic plc (MDT) in the medical devices industry. MDT is recognized for its innovative medical solutions, and it has outperformed EW with a 9.7% return in 2024 and an 11% rise over the past year.
Despite its underperformance relative to IHI, analysts are reasonably optimistic about EW's prospects. The stock has a consensus rating of "Moderately Buy" from 26 analysts in coverage. The mean price target of $78.75 reflects a 15.4% premium over current levels.
On the date of publication, Kritika Sarmah 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.
