Shockwave Medical is the IBD Stock Of The Day. Wall Street expects the company to report an eye-popping 1,240% third-quarter earnings growth, and SWAV stock is now actionable.
The company is an expert in intravascular lithotripsy, a method of "cracking" hardened calcium in arteries. Patients with calcifications in their arteries are at a heightened risk of heart attack, stroke and death. Shockwave hopes intravascular lithotripsy will replace an older procedure known as atherectomy, which uses a small drill to remove the small, built-up plaque.
Chief Executive Douglas Godshall told Investor's Business Daily physicians were "thrilled" to find products as safe and predictable as Shockwave's. Atherectomy carries the risk that calcium chunks will break off into the bloodstream, causing problems. Intravascular lithotripsy cracks the calcium inside the vessel walls. That allows the vessels to relax and blood flow to normalize.
SWAV Stock Is Technically Actionable Now
SWAV stock is nearing a buy point at 315 out of a consolidation, MarketSmith.com data shows. But the stock is technically actionable now. Shares are breaking above the 50-day moving average and the trend line in strong volume.
Further, the stock's relative strength line is at a new high. Shares jumped 6% to close at 295.31 on the stock market today.
Analysts are enthusiastic about the company's growth trajectory. When Shockwave reports earnings on Nov. 7, SWAV stock analysts project adjusted per-share profit of 67 cents and $124 million in sales. Earnings would grow 1,240% and sales would soar more than 90%.
That's on the way to expectations for full-year earnings of $2.55 per share and $475.9 million in sales. Earnings would turn around from a 26-cent loss in the prior year and sales would roughly double, according to FactSet.
Godshall credits the massive streak of growth to Food and Drug Administration approval of the company's intravascular lithotripsy device for patients with calcified coronary artery disease. The device, called C2, uses the same technology that breaks up kidney stones on calcified arteries.
Highly Rated Medical Stock
SWAV stock has a nearly perfect Relative Strength Rating of 98. This means shares land in the top 2% of all stocks in terms of 12-month performance, according to IBD Digital.
The Composite Rating is slightly behind at 94, putting shares in the leading 6% of all stocks when it comes to fundamental and technical measures.
SWAV stock is also on the Tech Leaders list.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
