Analysts for this medical device maker are calling for double-digit growth: Current quarter: 41.20%; Next quarter: 30.40%; Current year: 37.60%; and Next year: 53.80%.
Abiomed (ABMD)
From Cabot Growth Investor
Abiomed (ABMD) isn’t as hot as some stocks, but it’s been making good progress, registering new highs earlier this week. Adoption of the firm’s Impella heart pump remains rapid, thanks mainly to its vastly improved clinical outcomes, including a near 20 percentage point boost in survival rates following cardiogenic shock and a 29% decrease in bad outcomes like death or stroke in high-risk angioplasty procedures.
The company estimates it has just 6% of the market today, though it’s aiming for 20% to 40% share within a few years; if that happens, earnings would go through the roof.
The stock could be in for a test of its 50-day line, which is down just below 115. Overall, though, the stock remains in an uptrend so we think this dip is buyable. BUY.
Michael Cintolo, Cabot Growth Investor, www.cabot.net, 978-745-5532, August 17 and 24, 2016