Medical equipment stocks are attracting the attention of many investors with the support of the aging population, higher disease rates and r...
Strong fourth-quarter earnings this week from industry names such as Align Technology, Inc. (ALGN) and Stryker Corporation (SYK) have caused several stocks in space to reach 52 weeks of continuation patterns such as flags and flags. It peaks
Let's take a closer look at the main technical levels of the three medical equipment stocks on the verge of a 12-month failure.
Abbott Laboratories (ABT)
With a market capitalization of $ 128.18 billion, Abbott Laboratories (ABT) manufactures, manufactures and markets medical equipment, nutritional health care products, diagnostic equipment, and general medicine. Sales of the company's fourth-quarter medical equipment (Q4) led to organic growth, with revenues from diabetes care, structural heart and electrophysiology gaining 32.4%, 15.2% and 18.7%, respectively. Overall, the sector grew 9 percent in the quarter to $ 2.92 billion. Abbot offers 1.79% dividend and is down 0.46% year-on-year (YTD) as of February 1, 2019. Analysts hit 12-month stock with $ 79.55 - 9% higher than the closing price of $ 72.98 on Thursday.
Abbott stock prices have been trading in the range of 10 units since October. Although still fluctuating in the trading range, stocks have recently broken above a bearish pattern similar to the flag pattern, indicating that it wants to test its 52-week high at $ 74.57. If the price cannot cross this level, look for a return to the long-term uptrend that supports $ 67.
Edwards Lifesciences Corporation (EW)
California-based Edwards Lifesciences Corporation (EW) manufactures and sells medical devices and equipment to treat structural heart disease. Its principal products include surgical tissue heart valves, catheters and retractors, and monitoring equipment. The company generates roughly half of its revenue outside the United States. Edwards Lifesciences' Q4 net sales climbed 10% to $977.7 million, surpassing the Street's expectations of $976 million, although its outlook for the first quarter (Q1) fell shy of analysts' expectations. As of Feb. 1, 2019, the company's stock is up over 10% YTD, outperforming the medical devices industry average by 3.27% over the same period.
Edwards Lifesciences' chart shows a weak but steady uptrend over the past 12 months. The stock pushed slightly above a tight pennant pattern in Thursday trade that indicates an imminent run to the 2018 high at $175. Also, a relative strength index (RSI) reading below 70.0 gives the price plenty of room to move higher. Should price falter, bears may send the stock back toward $147.50, where it finds support from a long term trendline and the 200-day simple moving average (SMA).
Boston Scientific Corporation (BSX)
Boston Scientific Corporation (BSX) produces minimally invasive medical devices for blood clot filtration, cardiac rhythm management and structural heart disease as well as other specialty areas. The company, which has beaten earnings estimates in three out of the past four quarters, reports its Q4 results on Feb. 6, and it expects total year-over-year revenue growth of 6.3%, in line with consensus estimates. Full-year 2019 mean revenue growth is projected to be 14.4%. Boston Scientific stock, with a market cap of $52.79 billion, has returned nearly 8% this year as of Feb. 1, 2019.
After a moderate uptrend for the first nine months of 2018, Boston Scientific's share price slowly retraced back toward the 200-day SMA before starting its current leg higher in late December. The stock broke out from a pennant during yesterday's trading session and looks like it may test the 52-week high at $39.44 set in October last year. A stall here could see the price fall back to the $34 level, where it finds support from the 200-day SMA and a horizontal line connecting previous price action.
