Edwards Lifesciences stock trading at $67, 50% lower than peak, but potential 15% upside

From Nasdaq: 2024-09-25 02:56:28

Edwards Lifesciences (NYSE: EW) stock is trading at $67 per share, 50% lower than its peak of $131 in Dec 2021, while Medtronic stock (NYSE: MDT) is only down 7%. EW’s Q3 outlook has weighed it down, currently 30% below pre-Fed rate increase levels. Analysts see a 15% upside from the current price of $67.

Despite the volatility, Edwards Lifesciences High Quality Portfolio stocks have consistently outperformed the S&P 500. The HQ Portfolio offers better returns with less risk, providing a smoother ride in the market. Looking ahead, uncertainties around macroeconomic conditions may impact EW stock performance in the next 12 months.

Edwards Lifesciences revenue grew from $5.2 billion in 2021 to $6.2 billion in 2023, with an operating margin decline of 30.3% to 28.8%. The company is undergoing major restructuring with acquisitions of JenaValve Technology and Endotronix and the divestment of its Critical Care business for $4.2 billion in cash.

EW faces risks in its TAVR sales growth slowdown, as well as uncertainties around the ongoing inflation shock. With total debt at $700 million and $2.0 billion in cash, along with strong cash flows, Edwards Lifesciences is well-positioned to meet its obligations. The company’s net debt-negative status provides financial security in turbulent times.

Overall, Edwards Lifesciences stock shows potential for growth once recession fears subside and inflation is controlled. The company’s focus on its cardiovascular business post-restructuring, along with its strong financial position, sets the stage for potential gains in the future. Peers in the industry also exhibit mixed performance, with the S&P 500 showing a 20% YTD return in 2024, compared to EW’s -11%.



Read more at Nasdaq: Will Edwards Lifesciences Stock Surge 2x To Its Pre-Inflation Shock Highs?