Reasons to Add Penumbra Stock to Your Portfolio Now

Robust improvement of Penumbra, Inc.’s PEN Thrombectomy business is poised to help the company grow in the upcoming quarters. PEN expects impressive growth as it plans to expand globally in the coming years. A robust solvency position also bodes well for the stock. Meanwhile, unfavorable foreign exchange remains a concern for Penumbra.  In the past six months, shares of this Zacks Rank #2 (Buy) company have rallied 32.4% compared with the industry’s 0.3% growth and the S&P 500 composite’s 6.8% gain.The global healthcare provider has a market capitalization of $9.29 billion. PEN beat on earnings in three of the trailing four quarters and missed in one, the average surprise being 10.54%.Tailwinds for PenumbraRobust Thrombectomy Business Growth: Penumbra is demonstrating strong growth within the company’s Thrombectomy business, banking on the rapid increase in sales of the company’s vascular thrombectomy products in the United States as well as its CAVT line of products. In the third quarter of 2024, the company delivered 21.2% year-over-year growth in thrombectomy in the United States, driven by continued adoption and further market penetration of the current CAVT Portfolio, Lightning Flash 2.0 and Lightning Bolt 7. The U.S. VTE franchise delivered revenue growth of 32% year over year.Global Expansion Continues: Penumbra derives a significant portion of its revenues internationally. The company expects to materially increase revenues and profitability in its international business in the next three years and beyond. Internationally, the company projects early success with the launch of its first-generation computer-aided products in Europe. In addition, PEN’s international teams and partners envision enormous potential to further expand its leadership in stroke intervention outside the United States with SENDit and Thunderbolt over the coming years. Per the latest update, 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 its transformative technology to European markets. Stable Solvency Structure: Penumbra exited the third quarter of 2024 with cash and cash equivalents of $291 million. Meanwhile, total debt was $22 million, much lower than the corresponding cash and cash equivalent level. Also, it has no short-term-payable debt on its balance sheet. This is good news in terms of the company’s solvency position, particularly during global inflation and supply delays. Image Source: Zacks Investment ResearchHeadwinds for PenumbraForeign Exchange Impacts Sales: A significant portion of Penumbra’s sales and costs is exposed to changes in foreign exchange rates. The company’s operations use multiple foreign currencies, including the euro and Japanese yen. Changes in those currencies relative to the U.S. dollar will impact its sales, cost of sales and expenses, and consequently, net income.PEN Stock Estimate TrendsIn the past 30 days, the Zacks Consensus Estimate for Penumbra’s 2025 earnings has remained unchanged at $3.86. The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $1.37 billion, indicating a 14.9% rise from the year-ago reported number. Other Top MedTech StocksSome other top-ranked stocks in the broader medical space are Veracyte VCYT, Omnicell OMCL and ResMed RMD.Veracyte's estimated 2025 earnings growth rate is 65.8%, compared with the industry’s 21.9%. Its shares have risen 49.2% in the past year, compared with the industry’s 5.5% growth. VCYT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 520.58%. VCYT carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Omnicell, carrying a Zacks Rank #2 at present, has an earnings yield of 3.7% compared with the industry’s 9.5%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 121.74%. OMCL’s shares have risen 15.2% against the industry’s 16.8% decline in the past year.ResMed, carrying a Zacks Rank 2 at present, has an estimated earnings growth rate of 8.9% for fiscal 2025. Its shares have surged 33.4% compared with the industry’s 11.1% growth in the past year. RMD’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.41%. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Omnicell, Inc. (OMCL): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis Report Penumbra, Inc. (PEN): Free Stock Analysis Report Veracyte, Inc. (VCYT): 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