Is Penumbra Stock a Smart Buy for Your Portfolio Right Now?

Penumbra, Inc.’s PEN robust portfolio expansion efforts are poised to help it grow in the upcoming quarters. The company expects impressive growth as it expands globally throughout the rest of 2024 and beyond. A robust solvency position also bodes well for the stock. Meanwhile, macroeconomic volatilities and fiercely competitive space remain a concern for Penumbra.  In the past year, shares of this Zacks Rank #2 (Buy) company have rallied 7.1% compared with the industry’s 14.5% growth and the S&P 500 composite’s gain of 32.4%.The global healthcare provider company has a market capitalization of $9.37 billion. PEN surpassed earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 10.54%.Find the latest earnings estimates and surprises on Zacks Earnings Calendar.Tailwinds for PenumbraStrong Portfolio Expansion: The company’s consistent revenue growth momentum is driven by extraordinary outcomes from treatment with Lightning Flash, Lightning Bolt 7 and RED 72 with SENDit technology. In the third quarter, Penumbra received FDA clearance for two new CAVT products, Lightning Bolt 6X and Lightning Bolt 12, which further enhance and build out an increasingly comprehensive CAVT portfolio.In 2024 and beyond, the company plans to strongly focus on Flash and Bolt innovations. Last month, Penumbra released new late-breaking data on CAVT for patients with intermediate-risk pulmonary embolism (PE). Combined with Flash and Bolt 7, PEN expects its CAVT portfolio to drive market share and growth in Deep vein thrombosis (DVT), PE and arterial. It is also advancing with the THUNDER study and is in the process of bringing Thunderbolt to the market. The company now holds nearly 60% market share in the U.S. stroke market and expects to gain more share through 2024 ahead of a Thunderbolt launch.Image Source: Zacks Investment ResearchGlobal Expansion Continues: Penumbra expects to materially increase revenues and profitability in the company’s international business in the next three years and beyond.  During this period, the company expects to bring its franchise products like RED catheters and CAT RX together with all its most advanced products, Lightning Flash, Lightning Bolt 7 and Thunderbolt, to Penumbra global teams. Internationally, the company projects early success with the launch of its first-generation computer-aided products in Europe.Penumbra has plans to expand access to its most advanced thrombectomy products to its international vascular teams over the next few years. In the third quarter of 2024, the company received the CE Mark for Lightning Flash 2.0 and Lightning Bolt 7 in mid-September 2024 and is in the early phases of introducing the company’s transformative technology to European markets. These are expected to have a pronounced impact on the company’s international growth in 2025.Stable Solvency Structure: Penumbra exited the third quarter of 2024 with cash and cash equivalents of $291 million compared with $340 million and no short-term payable debt on its balance sheet. This is good news in terms of the company’s solvency position, particularly during the global inflationary situation and supply delays. Total debt-to-capital was low at 2% compared with the industry’s 30.9%.Downsides for PENMacroeconomic Concerns: Outside the United States, Penumbra sells its products to healthcare providers through direct sales organizations and distributors in select international markets. Like other industry players, Penumbra’s business is currently impacted by worldwide geopolitical complications, leading to a widespread impact on global supply chains and labor markets. These have resulted in cost escalation and raw material supply constraints, as well as an increase in employee turnover rates in certain jurisdictions. All these factors are putting significant pressure on Penumbra’s profitability.Tough Competitive Landscape: Penumbra competes with several manufacturers and distributors of neuro and vascular medical devices, most of them being large, well-capitalized companies with longer operating histories and greater resources than Penumbra. As a consequence, they are able to spend more on product development, marketing, sales and other product initiatives than Penumbra. The company also competes with many smaller medical device companies with single products or a limited range of products.PEN Stock Estimate TrendsIn the past 30 days, the Zacks Consensus Estimate for Penumbra’s 2024 earnings has jumped 5.2% to $2.81.The Zacks Consensus Estimate for the company’s 2024 revenues is pegged at $1.19 billion, indicating a 12.6% rise from the year-ago reported number. Other Top MedTech StocksSome other top-ranked stocks in the broader medical space are Haemonetics HAE, Boston Scientific BSX and Globus Medical GMED.Haemonetics has an earnings yield of 5.41% compared with the industry’s 1.75%. Haemonetics’ earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 2.82%. Its shares have risen 8.9% compared with the industry’s 21.2% growth in the past year.HAE carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Boston Scientific, carrying a Zacks Rank #2 at present, has a long-term estimated earnings growth rate of 13.8%. Shares of the company have surged 63.4% compared with the industry’s 23.1% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.29%.Globus Medical, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 28.5% for 2024 compared with the industry’s 15.4%. Shares of the company have risen 81.2% compared with the industry’s 14.5% growth over the past year. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report Haemonetics Corporation (HAE): Free Stock Analysis Report Globus Medical, Inc. (GMED): Free Stock Analysis Report Penumbra, Inc. (PEN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks