Author: Zacks Equity Research

SRDX – Why You Should Add Surmodics (SRDX) to Your Portfolio Now

Surmodics, Inc. (SRDX Free Report) is gaining on regulatory clearances and acquisitions. Consistent R&D efforts have also been contributing to growth for a while now.

The company, with a market capitalization of $766.6 million, is a leading provider of medical device and In Vitro Diagnostics (IVD) technologies to the healthcare industry. The company’s earnings are expected to improve 10% over the next five years. However, this currently Zacks Rank #2 (Buy) company has a trailing four-quarter earnings miss of 369.2%, on average.

In the past three months, the stock has gained 34.4% compared with 3.3% growth of its industry.

Let’s delve deeper into the factors working in favor of the company.

R&D Update: Surmodics’ solid efforts to improve R&D are a consistent key driver. Its whole product solutions pipeline and Sirolimus-based below-the-knee DCB program deserve mention here. The company continues to make significant progress when it comes to its other radial access therapeutic devices including the 0.18 transradial PTA balloon catheter.

In November 2020, the company released 6-month data from the AVESS first-in-human (FIH) study of the company’s Avess AV Fistula DCB. In January 2021, it completed enrollment in the SWING first-in-human clinical trial on Sundance sirolimus DCB, ahead of schedule. SWING enrolled 35 patients across eight sites in Europe, Australia and New Zealand.

Regulatory Approvals: In September 2020, the company received the FDA 510(k) clearance for its Pounce Thrombus Retrieval System, which enables non-surgical removal of thrombi and emboli from the peripheral arterial vasculature. This approval will provide a boost to Surmodics’ Medical Devices segment. With regard to the .018” balloon dilation catheter, the company is making a steady progress through the fiscal first quarter and expects to file for its FDA 510(k) approval in the third quarter of fiscal 2021. It is also on track to attain the PMA for SurVeil by the end of calendar 2021.

Acquisitions and Partnerships: Surmodics made several acquisitions over the last few years, which not only diversified its revenue base but also expanded its customer base.With regard to the company’s product portfolio of specialty catheters, its hydrophilic PTA 0.014″ and 0.018″ balloon catheters, which expanded its partnership with Cook Medical, are now commercially launched in the United States.

This deal is expected to bolster Surmodics’ capability to support key projects and strengthen its technical and business management teams.

Estimate Trend

For fiscal 2021, the Zacks Consensus Estimate for revenues is pegged at $103.5 million, indicating a rise of 9.2% from the prior fiscal year’s reported number. The same for earnings stands at 36 cents per share, suggesting growth of 176.9% from the previous fiscal year’s reported figure.

Other Key Picks

Some other top-ranked stocks from the broader medical space are Align Technology (ALGN Free Report) , Abbott Laboratories (ABT Free Report) and Hologic (HOLX Free Report) . While Align Technology currently sports a Zacks Rank #1 (Strong Buy), the other two presently carry a Zacks Rank of 2 . You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has a projected long-term earnings growth rate of 19%.

Abbott has a projected long-term earnings growth rate of 14.1%.

Hologic has an estimated long-term earnings growth rate of 15.4%.

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MVBF – Can MVB Financial (MVBF) Run Higher on Rising Earnings Estimates?

Investors might want to bet on MVB Financial (MVBF Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.

Analysts’ growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool — the Zacks Rank.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For MVB Financial, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $0.76 per share, which is a change of +850% from the year-ago reported number.

The Zacks Consensus Estimate for MVB Financial has increased 111.11% over the last 30 days, as one estimate has gone higher compared to no negative revisions.

Current-Year Estimate Revisions

The company is expected to earn $2.28 per share for the full year, which represents a change of -25.49% from the prior-year number.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for MVB Financial. Over the past month, one estimate has moved higher compared to no negative revisions, helping the consensus estimate increase 101.77%.

Favorable Zacks Rank

The promising estimate revisions have helped MVB Financial earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

MVB Financial shares have added 50.2% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

FNF – Why FNF Group (FNF) Might be Well Poised for a Surge

FNF Group (FNF Free Report) could be a solid addition to your portfolio given a notable revision in the company’s earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

Analysts’ growing optimism on the earnings prospects of this provider of title insurance and mortgage services is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool — the Zacks Rank — is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For FNF Group, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $1.21 per share, which is a change of +65.75% from the year-ago reported number.

Over the last 30 days, one estimate has moved higher for FNF Group compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 32.97%.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $4.83 per share, representing a year-over-year change of -9.55%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for FNF Group. Over the past month, two estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 7.57%.

Favorable Zacks Rank

Thanks to promising estimate revisions, FNF Group currently carries a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

FNF Group shares have added 5.4% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.

PXD – Why Pioneer Natural Resources (PXD) Might be Well Poised for a Surge

Pioneer Natural Resources (PXD Free Report) could be a solid addition to your portfolio given a notable revision in the company’s earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.

Analysts’ growing optimism on the earnings prospects of this independent oil and gas company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool — the Zacks Rank — is principally built on this insight.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Pioneer Natural Resources, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.

The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:

12 Month EPS

Current-Quarter Estimate Revisions

For the current quarter, the company is expected to earn $1.75 per share, which is a change of +52.17% from the year-ago reported number.

Over the last 30 days, four estimates have moved higher for Pioneer Natural Resources while two have gone lower. As a result, the Zacks Consensus Estimate has increased 7.86%.

Current-Year Estimate Revisions

For the full year, the company is expected to earn $8.67 per share, representing a year-over-year change of +428.66%.

In terms of estimate revisions, the trend for the current year also appears quite encouraging for Pioneer Natural Resources. Over the past month, eight estimates have moved higher compared to one negative revision, helping the consensus estimate increase 23.95%.

Favorable Zacks Rank

Thanks to promising estimate revisions, Pioneer Natural Resources currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

Pioneer Natural Resources shares have added 25.2% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.