Is Edwards Lifesciences Corporation (EW) A Good Stock To Buy Now?

Is EW a bully banal to buy? We came crossed a bullish thesis on Edwards Lifesciences Corporation Torre Financial Newsletter’s Substack by Federico Torre. In this article, we volition summarize the bulls’ thesis on EW. Edwards Lifesciences Corporation's share was trading astatine $83.92 as of March 16th. EW’s trailing and forward P/E were 46.17 and 28.49 respectively according to Yahoo Finance.

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Edwards Lifesciences Corporation provides products and technologies to dainty precocious cardiovascular diseases successful the United States and internationally. EW has completed its modulation into a pure-play structural bosom illness leader, sharpening its absorption connected high-growth, high-margin segments pursuing the divestiture of its Critical Care concern to Becton, Dickinson and Company for $4.2 cardinal successful cash.

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This strategical move, portion removing astir 20% of its 2023 EBITDA base, has been efficaciously offset by the accelerated enlargement of its Transcatheter Mitral and Tricuspid Therapies (TMTT) segment, which is increasing implicit 50% year-over-year and emerging arsenic a cardinal operator of aboriginal growth.

At the aforesaid time, its halfway Transcatheter Aortic Valve Replacement (TAVR) franchise, generating implicit $4.5 cardinal successful yearly gross with 12%+ growth, continues to supply a unchangeable and scalable foundation, with further upside from expanded indications specified arsenic asymptomatic and mean aortic stenosis patients.

Trading astatine astir $78 pursuing a pullback from caller highs of $87, Edwards Lifesciences presents an charismatic introduction constituent supported by beardown fundamentals, including 78% gross margins, a coagulated equilibrium expanse with $3.8 cardinal successful cash, and improving escaped currency travel generation. The company’s valuation of ~21.3x EV/NTM EBITDA remains beneath its humanities mean of 26x, suggesting country for aggregate enlargement alongside expected EBITDA maturation of 10–11% CAGR.

With ongoing stock repurchases, disciplined superior allocation, and a semipermanent maturation outlook driven by demographic tailwinds and innovation successful transcatheter therapies, Edwards Lifesciences is good positioned for sustained double-digit net growth. In a favorable scenario, a operation of net enlargement and aggregate re-rating could thrust compelling double-digit annualized returns from existent levels.