Have you ever been being attentive to shares of AxoGen (AXGN)? Shares have been on the transfer with the fill up 27.6% over the previous month. The inventory hit a brand new 52-week excessive of $17.23 within the earlier session. AxoGen has gained 151.7% because the begin of the yr in comparison with the -4% transfer for the Zacks Medical sector and the 4.5% return for the Zacks Medical – Devices business.
What’s Driving the Outperformance?
The inventory has a formidable report of constructive earnings surprises, because it hasn’t missed our earnings consensus estimate in any of the final 4 quarters. In its final earnings report on November 7, 2024, AxoGen reported EPS of $0.07 versus consensus estimate of $0 whereas it beat the consensus income estimate by 3.5%.
For the present fiscal yr, AxoGen is predicted to submit earnings of $0.09 per share on $185.43 million in revenues. This represents a 152.94% change in EPS on a 16.62% change in revenues. For the subsequent fiscal yr, the corporate is predicted to earn $0.31 per share on $208.47 million in revenues. This represents a year-over-year change of 251.85% and 12.42%, respectively.
Valuation Metrics
AxoGen could also be at a 52-week excessive proper now, however what may the long run maintain for the inventory? A key facet of this query is looking at valuation metrics with a purpose to decide if the corporate is due for a pullback from this stage.
On this entrance, we are able to take a look at the Zacks Type Scores, as these give buyers a wide range of methods to comb by shares (past wanting on the Zacks Rank of a safety). These types are represented by grades operating from A to F within the classes of Worth, Progress, and Momentum, whereas there’s a mixed VGM Rating as nicely. The concept behind the fashion scores is to assist buyers decide essentially the most acceptable Zacks Rank shares based mostly on their particular person funding fashion.
AxoGen has a Worth Rating of D. The inventory’s Progress and Momentum Scores are A and C, respectively, giving the corporate a VGM Rating of B.
By way of its worth breakdown, the inventory presently trades at 198.4X present fiscal yr EPS estimates, which is a premium to the peer business common of 28.5X. On a trailing money circulation foundation, the inventory presently trades at 5X versus its peer group’s common of 17X. This is not sufficient to place the corporate within the high echelon of all shares we cowl from a worth perspective.
Zacks Rank
We additionally want to take a look at the Zacks Rank for the inventory, as this supersedes any development on the fashion rating entrance. Luckily, AxoGen presently has a Zacks Rank of #2 (Purchase) because of favorable earnings estimate revisions from masking analysts.
Since we suggest that buyers choose shares carrying Zacks Rank of 1 (Sturdy Purchase) or 2 (Purchase) and Type Scores of A or B, it appears as if AxoGen passes the check. Thus, it appears as if AxoGen shares may nonetheless be poised for extra positive aspects forward.
How Does AXGN Stack As much as the Competitors?
Shares of AXGN have been hovering, and the corporate nonetheless seems to be an honest selection, however what about the remainder of the business? One business peer that appears good is Fresenius Medical Care AG & Co. KGaA (FMS). FMS has a Zacks Rank of # 2 (Purchase) and a Worth Rating of A, a Progress Rating of C, and a Momentum Rating of A.
Earnings have been robust final quarter. Fresenius Medical Care AG & Co. KGaA beat our consensus estimate by 7.14%, and for the present fiscal yr, FMS is predicted to submit earnings of $1.94 per share on income of $20.88 billion.
Shares of Fresenius Medical Care AG & Co. KGaA have gained 0.5% over the previous month, and presently commerce at a ahead P/E of 14.66X and a P/CF of 4.9X.
The Medical – Devices business is within the high 22% of all of the industries we have now in our universe, so it appears like there are some good tailwinds for AXGN and FMS, even past their very own strong basic scenario.
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AxoGen, Inc. (AXGN) : Free Stock Analysis Report
Fresenius Medical Care AG & Co. KGaA (FMS) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
