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Here’s Why Investors Should Hold AngioDynamics Stock Now


AngioDynamics Inc. ANGO is gaining prominence in the MedTech space, courtesy of its flagship platform — the NanoKnife System. Also, it has a market capitalization of approximately $768.8 million. However, the company is witnessing temporary sluggishness in the Venous Insufficiency business and PICC product lines.

In a year’s time, this Zacks Rank #3 (Hold) stock has gained 21.3% compared with the industry’s 17.3% rally.

Here we take a quick look at AngioDynamics’ major headwinds and discuss the factors that ensure near-term recovery.

What’s Deterring the Stock?

AngioDynamics’ weak Venous Insufficiency business and decline in PICC product lines negatively impacted its performance in the fiscal first quarter. Additionally, the company’s U.S. sales took a hit in the quarter. In fact, management expects sluggish growth at Venous Insufficiency business to persist in the fiscal second quarter as well.

Why Should You Still Retain the Stock?

AngioDynamics’ NanoKnife system is acting as a key catalyst to its Oncology business. The product has previously received FDA clearance for the surgical ablation of the soft tissue.

Currently, the company is experiencing solid demand for its coveted NanoKnife system to treat tumors. AngioDynamics is already looking to further broaden its commercial opportunities. Apart from Germany and Denmark, the company is looking forward to achieve the same in Europe and the United Kingdom.

In the first quarter of fiscal 2019, NanoKnife revenues grew 7% year over year on increasing global adoption of the technology.

Solid Estimate Revisions

The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at 21 cents, up 31.3% year over year. The consensus mark for the revenues stands at $88.9 million, reflecting a 2.5% increase year over year.

For fiscal 2019, the Zacks Consensus Estimate for revenues is pegged at $357.1 million, mirroring an increase of 3.7%. For adjusted earnings, the same is pinned at 85 cents, up 14.9% year over year.

AngioDynamics, Inc. Price and Consensus

Stocks to Consider

A few better-ranked stocks in the broader medical space are Quidel Corporation QDEL, STAAR Surgical Company STAA and Illumina, Inc. ILMN.

Quidel Corporation has long-term expected earnings growth rate of 25% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

With a Zacks Rank #1, STAAR Surgical delivered average four-quarter positive earnings surprise of 400%.

Illumina’s long-term earnings growth rate is projected at 23.4%. The stock carries a Zacks Rank #2 (Buy).

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