Edwards Lifesciences (EW) Dips More Than Broader Markets: What You Should Know

In the latest trading session, Edwards Lifesciences (EW) closed at $102.25, marking a -1.16% move from the previous day. This change lagged the S&P 500's daily loss of 0.74%.

Heading into today, shares of the medical device maker had lost 5.09% over the past month, lagging the Medical sector's loss of 2.46% and the S&P 500's loss of 4.6% in that time.

Investors will be hoping for strength from Edwards Lifesciences as it approaches its next earnings release. The company is expected to report EPS of $0.58, up 7.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.31 billion, up 7.57% from the year-ago period.

EW's full-year Zacks Consensus Estimates are calling for earnings of $2.56 per share and revenue of $5.72 billion. These results would represent year-over-year changes of +15.32% and +9.41%, respectively.

Investors should also note any recent changes to analyst estimates for Edwards Lifesciences. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. Edwards Lifesciences currently has a Zacks Rank of #3 (Hold).

Investors should also note Edwards Lifesciences's current valuation metrics, including its Forward P/E ratio of 40.34. Its industry sports an average Forward P/E of 31.08, so we one might conclude that Edwards Lifesciences is trading at a premium comparatively.

Meanwhile, EW's PEG ratio is currently 2.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.9 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 176, which puts it in the bottom 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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