Edwards Lifesciences Gets ‘Buy’ Ratings from 77% of Analysts
Edwards Lifesciences (EW) is one of the leading players in the artificial valve market. EW stock witnessed a declining trend toward the end of 2016 after the company posted disappointing 2Q16 results. However, it has been recovering recently and returned ~26.5% YTD (year-to-date).
Let’s look at the analysts’ recommendations and target prices for Edwards Lifesciences over the next year.
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Based on the recommendations of 22 brokerage companies in a Reuters survey, Edwards Lifesciences (EW) is rated as a “buy” by ~77.3% of analysts covering the stock. About 18.2% of the brokerage companies issued “hold” recommendations for the company. Only one of the analysts issued a “sell” recommendation for EW stock.
You can look at the recommendation summary for Edwards Lifesciences (EW) over the next one-year period in the chart above. The consensus 12-month target price for the stock is $122.40, which amounts to an ~3.3% return potential. This is up from Edwards Lifesciences’ price of $118.50 on June 22, 2017.
On June 22, according to analysts’ recommendations, the lowest one-year target price for Edwards Lifesciences was $86.00, and the highest one-year target price was $195.00. These targets imply the lowest return potential of approximately -28%, whereas the maximum return potential would be ~65% after one year.
Among Edwards Lifesciences’ peers Boston Scientific (BSX), Medtronic (MDT), and Abbott Laboratories (ABT) have average broker target prices of ~$29.70, $918.00, and $48.90, respectively. These figures imply potential returns of 6.8%, 3.1%, and -0.6%, respectively, over the next 12 months.
ETFs with exposure to Edwards Lifesciences
For exposure to Edward Lifesciences, investors can consider investing in healthcare sector ETFs such as the Health Care Select Sector SPDR ETF (XLV). EW accounts for ~0.84% of XLV’s total holdings.
For highly focused exposure to the company, investors can consider investing in the iShares US Medical Devices ETF (IHI), which has 3.6% of its total holdings in Edwards Lifesciences. IHI tracks the Dow Jones US Select Medical Equipment Index and is one of the largest US medical device ETFs.
Investors looking to diversify sector-specific risks can invest in the Vanguard Mid-Cap Growth ETF (VOT). VOT holds ~1.5% of its total portfolio in EW.