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With a market cap of $40.7 billion, Edwards Lifesciences Corporation (EW) provides products and technologies to treat advanced cardiovascular diseases in the United States, Europe, Japan, and internationally. Founded in 1958, the Irvine, California-based company distributes its products through a direct sales force and independent distributors.
Companies valued at more than $10 billion or more are generally considered “large-cap stocks”, and EW fits this criterion perfectly.
EW stock has faced some struggles over the past year and has fallen 27.9% from its 52-week high of $96.12, recorded on Mar. 28. 2024. However, the stock has declined 5.5% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) fall of 10.9% over the same time frame.
Over the past six months, shares of EW surged 1.1% while NASX surged marginally. However, EW has declined 25.8% over the past 52 weeks compared to NASX's 10.1% return.
EW has dipped below its 200-day moving average since late-February and has been hovering under its 50-day moving average since early-March, indicating a bearish trend.
Shares of EW surged 6.9% following its Q4 earnings release on Feb. 12. The company reported a 9% increase in its sales, which amounted to $1.4 billion. Moreover, its EPS came in at $0.59, surpassing the Wall Street estimates by 7.3%. The Transcatheter Aortic Valve Replacement segment contributed significantly, generating $1.04 billion in global sales, marking a 6% increase from the previous year.
Looking ahead, the company projects first-quarter 2025 sales between $1.35 and $1.43 billion and adjusted EPS ranging from $0.58 to $0.64.
EW’s rival, GE HealthCare Technologies Inc. (GEHC), has also showcased declines over the past year, with the stock dipping 5.7% over the past six months and 7.2% over the past 52 weeks.
Analysts are moderately optimistic about the stock's prospects. The stock has a consensus rating of “Moderate Buy” from the 28 analysts covering it, and the mean price target of $79.35 represents an upside of 14.5% from the current market prices.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
