Penumbra is hovering near its 50-day moving average within a consolidation base that has a buy point of 310. On the weekly chart on Investor's Business Daily's MarketSurge, the stock shows a blue dot as its relative strength line hits a new high. Penumbra stock is Tuesday's selection for IBD 50 Stocks To Watch.
Penumbra makes medical products to treat conditions such as strokes caused by blood clots that disrupt the flow of blood to the brain. The stock ranks fourth in the medical products group, according to IBD Stock Checkup.
First-quarter results are due on Wednesday after market close. Also, President Donald Trump's orders could call for tariffs on the pharmaceutical industry, a reason to tread cautiously when considering this stock.
Sales growth has been steady during the past eight quarters, ranging between 11% and 29%. Meanwhile, earnings growth has been even stronger. Over the past four quarters, earnings growth has ranged from 27% to 78%.
Analysts polled by FactSet estimate a 13% growth in sales of $315.7 million with earnings per share of 67 cents, which would be a 63% increase from the prior year.
Further, profit is seen rising in both 2025 and 2026, with estimates sitting at a 28% increase in earnings to $3.67 per share in 2025. Estimates for 2026 predict a 35% increase in earnings to $4.95 per share.
The stock also offers an earlier buy point at 288.57 in a double-bottom base.
Penumbra Stock: 802% Gain
Shares had an initial public offering on the New York Stock Exchange on Sept. 18, 2015, at 30 a share. As of Monday's close, the stock had gained 802% since its initial listing.
The stock's all-around score or Composite Rating is 95 out of best-possible 99. Further, its Earnings Per Share Rating stands at 97. Its Relative Strength Rating of 94 means Penumbra has outperformed 94% of all stocks in the IBD database over the past 52 weeks.
Mutual funds own 70% of outstanding shares, with more funds becoming net buyers over the past three quarters. In the IBD mutual fund index, the Allspring Growth Fund (SGRAX) and the T Rowe Price New Horizons Fund (PRNHX) hold shares of Penumbra stock.
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