Today’s Bull of the Day is an example of how you can use the time-tested performance of the Zacks Rank combined with the recent addition of the Zacks Style Score in order to find your next great stock pick. You already know that you should be looking for Zacks Rank #1 (Strong Buy) and Zacks Rank #2 (Buy) stocks to add to your portfolio. But depending on what style of investor you are, you can use the Style Score to find the stocks that will suit your investment profile. Whether you are growth, value or momentum oriented we have a solution for you.
Merit Medical Systems (MMSI – Snapshot Report) is a Zacks Rank #1 (Strong Buy) that has a Zacks Momentum Style Score of “A.” The momentum metrics have to do with recent earnings estimate revisions, just like the Zacks Rank, but also changes in volume as well as relative industry strength.
Merit Medical was formed for the purpose of producing single-use medical products of high quality and superior value primarily for use in diagnosis and treatment of cardiovascular disease. The company’s products are designed to provide physicians and other health care professionals with devices that enable them to perform interventional and diagnostic procedures safely and effectively.
Analysts have been very bullish on the stock as of late. Over the last seven days, two analysts have increased their earnings estimates for the current year and next year. The revisions have increased current year consensus from 79 cents to 87 cents and pushed up next year’s numbers from 94 cents to 98 cents.
The most recent earnings report saw earnings for Q2 come in at 18 cents per share, 3 cents above our Zacks Consensus Estimate. That marked the third consecutive quarter of surprises to the upside. Q4 saw a 6 cent beat at 26 cents EPS and Q3 came in at 25 cents versus expectations for only 16 cents.
Recent market weakness has helped Merit sell off from a fresh 52-week high at $21.59 a few days ago to under $20 during today’s session. Currently the stock is still trading above its 21 day moving average at $19.35, making the case for the bull trend still being intact. The CCI has pulled back from an extreme overbought condition above 400 to the 71.53 level it sits at today.