Based in Wayne, PA, Teleflex Inc. TFX recently announced the launch of LMA Gastro Airway with Cuff Pilot Technology, the first laryngeal mask that combines a pharyngeal chamber and dual gastric drainage channels.
The company has also announced the receipt of 510(k) approval from the U.S. FDA for its Arrow VPS Rhythm device for commercial use.
Since the announcements, Teleflex witnessed a 1.9% rally in its share price to close at $167.88 on Jan 10. Meanwhile, over the last one year, the stock represents a solid return of almost 29.8%, better than the Zacks categorized Medical Instruments sub-industry’s return of roughly 4.5%.
Meanwhile, year to date, shares of the company rose 4.2%, higher than the S&P 500’s return of 1.5% over the same timeframe.
We should also note that Teleflex has a forward PE ratio (price relative to this year’s earnings) of 20.72. Thus, the company is poised to gain further in the near future.
The LMA Gastro Airway is the latest advancement under the company’s flagship LMA Brand. Notably, the LMA platform has developed the original laryngeal mask airway. The new LMA Gastro Airway strengthens the brand name as it offers airway control during ‘endoscopic procedures’.
On the other hand, the FDA go-ahead fortifies the company’s position in the catheter tip placement space by providing unique therapeutic and budgetary solutions for patients. Notably, the Arrow VPS Rhythm Device is available with an Optional TipTracker Technology and complements the company’s existing Arrow VPS G4 device.
Teleflex boasts compelling fundamentals with revenues and adjusted earnings multiplying at a CAGR of 5.3% and 13.5%, respectively, over the past three years.
Of late, the company has been gaining traction in the niche markets, courtesy of a plethora of regulatory approvals. The company received FDA clearances for its Arrow Midline with Chlorag+ard Technology, Arrow JACC and TightTrack tunneler platforms as well.
On the flip side, the estimate revision trend for the current year has been unfavorable as two estimates moved south over the last two months, compared to no movement in the opposite direction. Thus, investors at the moment are waiting for a turn in estimates before adding the stock.
Zacks Rank & Key Picks
Teleflex has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader medical sector include Glaukos Corporation GKOS, Dextera Surgical Inc. DXTR and Penumbra Inc. PEN. Notably, Glaukos Corporation and Penumbra sport a Zacks Rank #1 (Strong Buy) while Dextera carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Glaukos Corporation has a long-term expected earnings growth rate of approximately 25%. Notably, the stock represents an impressive one-year return of 52.1%.
Dextera Surgical has posted a positive earnings surprise of 8.3% in the last reported quarter. Additionally, a long-term expected earnings growth rate of 25% raises investor confidence.
Penumbra has a long-term expected earnings growth rate of 20%. Notably, the stock represents an impressive one-year return of almost 29.7%.
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