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Zynex, Inc. (ZYXI) provides medical devices to treat chronic and acute pain; and activate and exercise muscles for rehabilitative purposes. Despite a cyclical slowdown, the company posted a 35.7% year-over-year increase in its total net revenue in the first quarter.
For the second quarter, the company expects its revenue to be between $43.5 million and $45.5 million, indicating an increase of approximately 21% from the prior-year quarter. Its second-quarter EPS is estimated to range between $0.03 and $0.07. For 2023, ZYXI expects its revenue to come in between $180 million and $200 million and EPS to be between $0.40 and $0.50.
Let’s look at the trends of some of its key financial metrics to determine whether the stock is a wise investment now.
Analysis of ZYXI’s Net Income Growth, Revenue, Gross Margin, and Price Target
The reported net income of ZYXI has experienced fluctuations in the past two years, with a decline from $10.93 million on June 30, 2020, to $5.43 million on March 31, 2021. However, there was a steady upward trend beginning in 2021, with the most recent value on March 31, 2023, being $17.24 million, a 58% growth rate compared to the first value.
![](https://storage.googleapis.com/sjn-charts/visualized-metrics/1684340014.93163.png)
ZYXI's revenue has experienced a steady upward trend since June 2020, with the most recent annualized rate of increase for the period ending March 2023 at 15.71%. The revenue value reached $169.25 million on March 31, 2023, representing a growth of $108.81 million, or 181.60%, from the starting value of $60.47 million on June 30, 2020.
![](https://storage.googleapis.com/sjn-charts/visualized-metrics/1684340041.3965.png)
The gross margin of ZYXI experienced a downward trend, decreasing from 79.3% in June 2020 to 77.7% in June 2021. However, from June 2021 onwards, the company experienced a positive regrowth of its gross margin, with an increase from 77.7% to 80.1% in June 2022.
This upward trend continued until the last reported value of 79.7% in March 2023. The overall growth rate was 1.6%, indicating an overall positive trend.
![](https://storage.googleapis.com/sjn-charts/visualized-metrics/1684340054.49442.png)
The analyst price target for ZYXI has generally fluctuated around $20 since November 12, 2021, but has recently shown an increasing trend and a growth rate of 15.5%. The analyst price target for ZYXI is currently $21 as of May 17, 2023.
![](https://storage.googleapis.com/sjn-charts/visualized-metrics/1684340068.25563.png)
ZYXI’s Share Price Shows Downtrend
The trend for ZYXI share prices is generally downward from November 2022 to May 2023. The price has gradually decreased from $14.21 on November 18, 2022, to $9.54 on May 17, 2023. The growth rate of the share prices over this period is approximately -9.3%. Here is a chart of ZYXI's price over the past 180 days.
![](https://storage.googleapis.com/sjn-charts/visualized-metrics/1684340095.85469.png)
ZYXI's POWR Ratings Reveal Stellar Quality
The overall POWR Ratings grade of ZYXI is currently B, translating to Buy. It has fluctuated between a low of C and a high of A since November 2022, with its highest rank in the A-rated seven-stock Medical - Consumer Goods industry at #3.
The POWR Ratings for ZYXI reveal the highest ratings are for Quality, with a score of 99 across all dates, indicating a strong level of excellence. The second highest rating is for Momentum, which has had an increasing trend with a score of 36 in November 2022, 42 in December 2022, 48 in January 2023, and 58 in May 2023.
Finally, Value has also had a steady trend with a score of 75 on all dates apart from January 2023, where it dropped to 61.
![](https://storage.googleapis.com/sjn-charts/visualized-metrics/1684340126.3803.png)
How Does ZYXI Stack Up Against Its Peers?
Other stocks in the Medical - Consumer Goods sector that may be worth considering are Nature's Sunshine Products, Inc. (NATR), LifeVantage Corporation (LFVN), and USANA Health Sciences, Inc. (USNA)-- they have better POWR Ratings.
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ZYXI shares were trading at $9.48 per share on Wednesday afternoon, up $0.01 (+0.11%). Year-to-date, ZYXI has declined -31.85%, versus a 8.29% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
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Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
Is Zynex (ZYXI) the Medical Stock to Buy? StockNews.com