Mazor Robotics Hits 52-Week High: What's Driving The Stock?
Zacks Investment Research | Feb 05, 2018 03:38AM ET
On Feb 2, 2018, shares of Mazor Robotics Ltd. (NASDAQ:MZOR) reached a new 52-week high of $69.37, closing the session a tad lower at $64.72.
The company’s shares have returned a whopping 71.7% compared with the S&P 500 index’s gain of 11.6%, over the last six months. The return is also higher than the broader industry ’s rally of 15.6%. The stock has a market cap of $1.65 billion.
Considering this, one may expect this Israel-based developer of robotic technology to scale new highs in the upcoming quarters. Further, the company delivered average positive earnings surprise of 27.3% in the trailing four quarters. Its positive growth rate of 30.6% for the next year instills optimism.
Estimate revision trends for the current year look impressive. In the last two months, one estimate has moved north, with no movement in the opposite direction.
Factors Driving Mazor Robotics
Let’s find out what are the possible growth propellers.
Highest System Orders Clinched: The company is set to report fourth-quarter 2017 results with record revenues, courtesy of 27 purchase orders of its robotic guidance system compared with 22 systems in the previous quarter.
The orders comprise of 24 Mazor X Systems. Of this, 23 were ordered by Medtronic (NYSE:MDT). This apart, three Renaissance system purchase orders were received from a U.S. customer and distribution partners in Germany and Thailand.
In 2017, the company received purchase orders for 73 systems, of which 64 were for the Mazor X System. Moreover, the company also received orders for 74 Mazor X Sytems, since its launch in the market in 2016.
Mazor X and the Medtronic Alliance: The market is also optimistic about Mazor Robotics’ strategic partnership with Medtronic aiming at attaining the exclusive worldwide distribution of the Mazor X System.
Recently, the company received CE Mark for the Mazor X, which will allow Medtronic to ramp up the European effort and assume exclusive global responsibility for Mazor X commercial activity.
Mazor Robotics is also ramping up their organization to meet future requirements. Along with Medtronic sales team, the company is likely to expand the installed base and drive additional system orders. Over the next five years, the target result is accumulative purchase of hundreds of Mazor X systems with corresponding increase in procedural volume.
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Mazor Core: At the North American Spine Society (NASS) conference, the company recently revealed that spinal surgeries performed by Renaissance Guidance System and powered by the proprietary Mazor Core technology has led to a five-fold reduction in surgical complications.
Mazor Core Technology is the collaboration of four key technologies in Mazor’s systems to provide predictable, efficient and precise surgical procedures. This is implemented in the Renaissance Guidance System and the Mazor X Robotic Guidance System.
Zacks Ranks & Other Stocks to Consider
Mazor Robotics carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the broader medical space are Abiomed (NASDAQ:ABMD) , athenahealth. (NASDAQ:ATHN) and Cardinal Health (NYSE:CAH) . Each of these stocks sport a Zacks Rank #1 (Strong Buy). You can see
Abiomed has an expected long-term growth rate of 31.5%. The stock has gained 61.8% over the last six months, surpassing the broader industry’s performance.
athenahealth has a projected lomg-term growth rate of 22.3%. The stock has gained 11.8% over the last three months, above the industry’s gain.
Cardinal Health has an expected long-term growth rate of 8.5%. In the last month, the stock gained 3.4%, higher than the industry’s rally.
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