Edwards Lifesciences (EW) shares move -0.68%: What you need to know

Edwards Lifesciences (EW) closed at $93 in the last trading session, marking a -0.68% move from the previous day. That move was narrower than the S&P 500’s 2.91% daily loss. Meanwhile, the Dow lost 2.73% and the Nasdaq, a technology-heavy index, lost 0.25%.

Prior to today’s trading, shares of the medical device maker had gained 0.21% in the past month. This lagged the medical sector’s gain of 2.04% and the S&P 500’s gain of 0.84% ​​during this period.

Edwards Lifesciences will look to show strength as it approaches its next earnings release. In this report, analysts expect Edwards Lifesciences to post earnings of $0.64 per share. This would mark no growth compared to the period a year ago. Meanwhile, Zacks’ consensus estimate for revenue calls for net sales of $1.4 billion, up 1.92% from the year-ago period.

Looking to the full year, our Zacks consensus estimates suggest analysts are expecting earnings of $2.57 per share and revenue of $5.72 billion. These totals would mark changes of +15.77% and +9.29%, respectively, from last year.

Investors should also note any recent changes to Edwards Lifesciences analyst estimates. Recent revisions tend to reflect the latest short-term trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business outlook.

Research indicates that these revisions to estimates are directly correlated to near-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven track record of outperformance, with #1 stocks returning an average of +25% per year since 1988. In the past 30 days, our consensus EPS projection has increased by 0.13%. Edwards Lifesciences currently has a Zacks rank of #3 (Hold).

Investors should also note Edwards Lifesciences’ current valuation metrics, including its Forward P/E ratio of 36.49. For comparison, its industry has an average Forward P/E of 28.79, meaning Edwards Lifesciences is trading at a premium to the group.

It should also be noted that EW currently has a PEG ratio of 2.63. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. The Medical – Instruments sector currently had an average PEG ratio of 1.99 at yesterday’s close.

The Medical – Instruments industry is part of the Medical sector. This group has a Zacks Industry ranking of 170, which places it in the bottom 33% of all 250+ industries.

The Zacks Industry Rankings are ranked from best to worst in terms of the average Zacks Ranking of individual companies in each of these industries. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.