Yahoo Finance Here's How Much You'd Have If You Invested $1000 in Edwards Lifesciences a Decade Ago
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.
What if you'd invested in Edwards Lifesciences (EW) ten years ago? It may not have been easy to hold on to EW for all that time, but if you did, how much would your investment be worth today?
Edwards Lifesciences' Business In-Depth
With that in mind, let's take a look at Edwards Lifesciences' main business drivers.
Edwards Lifesciences Corporation, headquartered in Irvine, CA, deals in products and technologies aimed at treating advanced cardiovascular diseases, especially structural heart disease in critically ill patients. The company is the world’s leading manufacturer of tissue heart valves and repair products used to replace or repair a patient's diseased or defective heart valve. Edwards is also a leading player in hemodynamic monitoring systems used to measure a patient's cardiovascular function in the hospital setting.
The company’s products and technologies are categorized into four main areas: Transcatheter Aortic Valve Replacement (TAVR), Transcatheter Mitral and Tricuspid Therapies (TMTT), Surgical Structural Heart, and Critical Care.
TAVR (65.4% of total revenues in 2021, underlying growth rate was 18.4% from 2020): This segment includes the SAPIEN family of valves used to treat heart valve diseases using catheter-based approaches for patients who have severe symptomatic aortic stenosis and certain patients with congenital heart disease.
TMTT (1.6%, up 99.7%): This segment consists of the PASCAL transcatheter valve repair system and the Cardioband systems for mitral and tricuspid valve repair, which are commercially available in Europe. The PASCAL system provides a differentiated, minimally-invasive therapy to address the needs of patients with mitral regurgitation through leaflet approximation, while the Cardioband system enables clinicians to restore a patient’s mitral or tricuspid valve to a more functional state by reducing the annulus and lowering regurgitation.
Surgical Structural Heart (16.9%; up 14.8%): This segment primarily comprises tissue heart valves and heart valve repair products for the surgical repair or replacement of a patient's heart valve. The portfolio also includes a diverse line of products used during minimally invasive surgical procedures, and cannulae, embolic protection devices and other products used during cardiopulmonary bypass.
Critical Care (15.9%, up 13.7%): Critical Care portfolio includes pulmonary artery catheters, disposable pressure transducers and advanced monitoring systems. The portfolio also includes a line of balloon catheter-based products, surgical clips and inserts.
Bottom Line
While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Edwards Lifesciences ten years ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in January 2013 would be worth $5,170.47, or a 417.05% gain, as of January 18, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 169.49% and gold's return of 8.72% over the same time frame.
Analysts are forecasting more upside for EW too. Edwards Lifesciences exited the third-quarter 2022, with both earnings and revenues missing the respective Zacks Consensus Estimate. However, the company registered year-over-year growth on both fronts on strong underlying growth across all product groups. Yet, a slower-than-expected recovery of the U.S. hospital staffing trend and COVID-19 restrictions in Japan marred the growth. Adjusted EPS grew despite aggressive investment in R&D and commercial infrastructure to support new therapies. The company’s long-term growth strategy and strong solvency position look encouraging. In the past year, Edwards Lifesciences has outperformed its industry. Yet, increasing operating costs are worrying. The choppy market conditions due to the continued foreign exchange impact and COVID-19-related hospital staffing issues are concerning.
The stock has jumped 7.41% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2022; the consensus estimate has moved up as well.
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Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report
