Recently, Zacks Investment Research upgraded Edwards Lifesciences Corp. (EW) to a Zacks Rank #2 (Buy).

Why the Upgrade?

Shares of this medical device major has rallied upward ever since it reported financial results for the second quarter of 2014 and subsequently hit a new 52-week high of $101.88 on Sep 15.

The company delivered impressive second-quarter 2014 results with both top- and bottom-line beats.

As expected, through the entire second quarter, Edwards remained in the headlines. It released positive results for the SAPIEN 3 transcatheter valve, launched SAPIEN XT in the U.S. and received the FDA approval for its ClearSight noninvasive monitoring system. More recently, last week, the company disclosed positive five-year data from the PARTNER trial, reflecting benefits of using Sapien valves in patients unable to undergo an open heart surgery.

We are encouraged by Edwards’ focus on building its pipeline that should further strengthen its foothold across all its operating businesses. In Transcatheter Heart Valves (:THV), 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 2014. The company also reported completion of enrollment in the high-risk and inoperable patient arm, the FDA approval for which is expected in 2016.

Edwards is also gaining experience with Centera, the commercial launch of which is expected in Europe this year. Further, at the EuroPCR meeting in May, the company presented data on its early experience with Sapien 3 which demonstrated a notable reduction in PV Leak – an important complication. Successful commercialization of these products should drive the company’s top line in the long term.

The company’s strong performance propelled a rise in the Zacks Consensus Estimate for earnings in 2014 and 2015 over the last 60 days. The number increased 4.8% to $3.29 in 2014 as 10 of 12 estimates moved up while the same rose 4.7% to $3.82 for 2015, as 8 of 12 estimates moved north. The expected long-term growth rate for the stock is 15.2%.

Other Stocks to Consider

Edwards Lifesciences currently has $10.71 billion worth of market capitalization. Other stocks that are worth a look in the industry are Hologic Inc. (HOLX), Hansen Medical, Inc. (HNSN) and Bacterin International Holdings, Inc. (BONE). All three stocks carry a similar Zacks Rank #2.

Read the Full Research Report on HOLX
Read the Full Research Report on EW
Read the Full Research Report on HNSN
Read the Full Research Report on BONE


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