NuVasive (NUVA) To Expand San Diego Global Headquarters

In its efforts to strengthen global presence, NuVasive, Inc. (NASDAQ:NUVA) is planning to renovate and extend the San Diego global headquarters.

The leading medical device company also aims to add a highly sophisticated innovation center of excellence to the facility. NuVasive further plans to add a world class surgeon education lab apart from expanding the work space. The company intends to introduce and educate surgeons from all over the globe on the company’s highly sophisticated spine technology and procedures at the innovation center of excellence.

NuVasive, a pioneer in applying procedurally-integrated solutions for minimally disruptive spine surgeries, has been steadily strengthening its global position. In 2014, the company opened a center of excellence in Amsterdam. This was followed by the building of a new 180,000-sq ft medical device facility in West Carrollton, OH. Moreover, the company owns a 100,000-sq ft facility which is used as its central distribution hub in Memphis, TN.

NuVasive has been riding on strength in its international business. Interestingly, the company witnessed year-over-year improvement on the top-line front in the second quarter of 2017 on account of robust growth in the international business. We encouragingly note that the quarter marked the third consecutive quarter of more than 20% growth in the international business. Thus, the company’s effort to solidify its global footprint seems to be strategically aligned.

Per a report from BECKER’s SPINE REVIEW, the global minimally invasive spine surgery market is expected to witness a CAGR of 7.6% between 2017 and 2021. Given the current market potential, we believe that the company is on the right track to gain traction.

We believe an ageing population, unhealthy lifestyle and rising awareness and expenditure in healthcare will continue to drive growth in the minimally invasive spine surgery market. However, this market is dominated by many well-established players like Stryker Corporation (NYSE:SYK) and Zimmer Biomet Holdings, Inc. (NYSE:ZBH) . Notably, Stryker provides a range of products with ES2 Spinal systems, MANTIS implants, LITe Decompression tubes and many more in its minimally invasive spine surgical solutions portfolio. Moreover, Zimmer Biomet’s range of thoracolumbar products forms a comprehensive portfolio for minimally-invasive spine surgery.

However, over the past three months, NuVasive’s share price has underperformed the industry. The stock has declined 18.2%, in contrast to the broader industry’s gain of 0.5%. The company has also underperformed the 1.2% gain of the S&P 500 market over the same time frame.

Zacks Rank & Key Pick

NuVasive carries a Zacks Rank #3 (Hold). A better-ranked medical stock is Edwards Lifesciences Corporation (NYSE:EW) , with a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has rallied roughly 19% over the last six months.

4 Surprising Tech Stocks to Keep an Eye On

Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really takes off.

See Stocks Now>>