Organ transplants are life critical and require a lot of care between the time organs are removed from the donor and placed in recipients. This critical medical need has driven sales and the stock price up for TransMedics Group. As Thursday's selection for IBD 50 Stocks To Watch, TransMedics provides organ transplant products and services for end-stage organ failure.
The stock has risen rapidly past a 92.63 entry point in a cup without handle and now sits in a buy zone, according to IBD MarketSurge. Shares have rallied for six days straight and were trading slightly lower on Thursday in what appears to be a normal pullback. An all-time high of 99.63 is not far away either.
Meanwhile, the S&P 500 has been coming off recent highs.
The thinly traded stock is rallying amid an announcement of an employee stock option plan to purchase common and restricted shares.
TransMedics Fourth-Quarter Results
Sales growth has been strong over the past eight quarters while the company also turned profitable in the fourth quarter with 12 cents per share. Sales grew 159% to $81.2 million.
And though its EPS Rating languishes at 33, TransMedics' Relative Strength Rating stands at 92. That means the stock is outperforming 92% of stocks in the Investor's Business Daily database. The Composite Rating is an adequate 80. Its chart tools also show that shares have also been outperforming the S&P 500 as it rallies.
TransMedics provides products and services for lung, heart, and liver transplants. Its products are approved by the Food and Drug Administration. They're designed to help monitor and keep donor organs in a metabolically active state until doctors are able to assess them for transplanting.
The stock has an Accumulation/Distribution Rating of B+. The Lord Abbett Developing Growth Fund (LAGWX) and the Invesco Discovery Fund (OPOCX) hold shares of TransMedics.
Among exchange traded funds, State Street's SPDR S&P Health Care Equipment ETF and the iShares U.S. Medical Devices ETF hold shares of TransMedics.
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