/Edwards%20Lifesciences%20Corp%20logo%20on%20phone-%20by%20IgorGolovniov%20via%20Shutterstock.jpg)
Valued at a market cap of $45.7 billion, Edwards Lifesciences Corporation (EW) provides products and technologies to treat advanced cardiovascular diseases. The Irvine, California-based company is known for its patient-centric approach and close collaboration with physicians.
This healthcare company has underperformed the broader market over the past 52 weeks. Shares of EW have gained 10.9% over this time frame, while the broader S&P 500 Index ($SPX) has soared 14%. Moreover, on a YTD basis, the stock is down 7.7%, compared to SPX’s 1.3% return.
However, zooming in further, EW has outpaced the iShares U.S. Medical Devices ETF (IHI), which declined 8.9% over the past 52 weeks and 6.1% on a YTD basis.
On Oct. 30, EW delivered its Q3 results, and its shares tumbled 1.2% in the following trading session. Due to strength across all product groups, the company reported net sales of $1.6 billion, up 14.7% year-over-year. Meanwhile, its adjusted EPS remained stable at $0.67 compared to the prior-year period but exceeded consensus expectations by a solid margin of 13.6%.
For the current fiscal year, ending in December, analysts expect EW’s EPS to grow 6.6% year over year to $2.59. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters.
Among the 31 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 18 “Strong Buy,” two “Moderate Buy,” and 11 "Hold” ratings.
The configuration is more bullish than a month ago, with 17 analysts suggesting a “Strong Buy” rating.
On Feb. 4, UBS Group AG (UBS) analyst Danielle Antalffy maintained a “Neutral” rating on EW but lowered its price target to $94, indicating a 19.4% potential upside from the current levels.
The mean price target of $96.71 represents a 22.9% premium from EW’s current price levels, while the Street-high price target of $110 suggests a 39.8% potential upside from the current levels.
