NuVasive (NUVA) At 52-Week High: What's Driving The Stock?

Headquartered in San Diego, CA, share price of NuVasive, Inc. (NASDAQ:NUVA) scaled a new 52-week high of $81.06 on Jun 9, eventually closing a bit lower at $79.13. The company has gained 17.3% over the past six months, ahead of the S&P 500’s 7.9% gain. The stock has a market cap of more than $4 billion.

Comparison with Broader Industry

Over the last month, the company’s share price has outperformed the Zacks categorized Medical - Products sub-industry. The stock has rallied 11.0% over this period, outshining the sub-industry’s gain of 4.3%. The company’s five-year historical growth rate is also favorable at 17.8%, as compared with 2.8% of the S&P 500 index and 3.4% of the broader industry.

Positive Earnings Surprise

This Zacks Rank #3 (Hold) company posted a positive earnings surprise of 2.70% in the last quarter. The four-quarter average earnings beat is 4.34%.

NuVasive, Inc. Price and Consensus

NuVasive, Inc. Price and Consensus | NuVasive, Inc. Quote

Growth Catalysts

The market is upbeat about NuVasive’s focus on product development, mainly core implant offerings and a few launches. In this regard, the company launched two interbody devices – MLX and TLX – used in lumbar fusion procedures. Its new UNYTE system and radiation-reducing X-ray technology called LessRay underwent successful base testing during the last reported first quarter of 2017.

Also, NuVasive announced the launch of the RELINE Trauma portfolio to address the estimated $100 million U.S. spine trauma fixation market, currently growing at 5.6% annually.

We are also encouraged by NuVasive’s efforts to enhance the portfolio of its XLIF procedure. The company has of late released added some new features to its Modulus XLIF, a fully porous titanium implant created in a 3D manufacturing process and designed to match the porosity and stiffness of bone.

Further, NuVasive announced U.S. FDA 510(k) clearance of the CoRoent Small Interbody System indicated for intervertebral body fusion at multiple contiguous levels in cervical spine. This marks the first U.S. clearance for a cervical cage to be used at up to four contiguous levels.

Recently, the company’s PRECICE system and PRECICE UNYTE platform from its NuVasive Specialized Orthopedics (NSO) were published in the Journal of Orthopaedic Trauma (JOT). The Jun 2017 issue demonstrated a lower complication rate, more patient comfort and faster healing ability of the PRECICE suite compared to conventional treatments.

All these above factors played pivotal role in driving the company’s share price to a new 52-week high.

Zacks Rank & Key Picks

A few better-ranked medical stocks are Align Technology, Inc. (NASDAQ:ALGN) , Inogen, Inc. (NASDAQ:INGN) and Accelerate Diagnostics, Inc. (NASDAQ:AXDX) . Notably, Align Technologyand Inogen sport a Zacks Rank #1 (Strong Buy), while Accelerate Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock added roughly 37.9% over the last three months.

Inogen has a long-term expected earnings growth rate of 17.5%. The stock has a solid one-year return of around 84.7%.

Accelerate Diagnostics has an expected long-term adjusted earnings growth of 30%. The stock added roughly 15.9% over the last three months.

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