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Edwards Lifesciences Corporation (EW), headquartered in Irvine, California, offers products and technologies for structural heart disease and critical care monitoring. Valued at $41.9 billion by market cap, the company offers products such as tissue replacement heart valves, heart valve repair, hemodynamic monitoring devices, angioscopy equipment, oxygenators, and pharmaceuticals.
Shares of this leading global structural heart innovation company have underperformed the broader market over the past year. EW has declined 16.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. In 2025, EW stock is down 4.2%, compared to SPX’s 3.2% rise on a YTD basis.
Narrowing the focus, EW’s underperformance is also apparent compared to iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has gained about 13.1% over the past year. Moreover, the ETF’s 9.9% gains on a YTD basis outshine the stock’s losses over the same time frame.
EW's weak performance is due to its decision to sell off its critical care unit.
On Feb. 11,EW shares closed down marginally after reporting its Q4 results. Its adjusted EPS increased 7.3% year over year to $0.59. The company’s revenue stood at $1.4 billion, up 9.4% year over year.
For fiscal 2025, ending in December, analysts expect EW’s EPS to grow marginally to $2.45 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.
Among the 28 analysts covering EW stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and 16 “Holds.”
This configuration is more bullish than a month ago, with 10 analysts suggesting a “Strong Buy.”
On Jan. 16, Wolfe Research downgraded to an “Underperform” rating on EW with a price target of $60.
The mean price target of $79 represents an 11.4% premium to EW’s current price levels. The Street-high price target of $90 suggests an upside potential of 26.9%.
