AngioDynamics Stock Plunges 13.8% in Three Months: What's Next?

Core Viewpoint - AngioDynamics, Inc. (ANGO) has faced a significant decline in stock performance, dropping 13.8% over the past three months, contrasting with the industry's slight gain of 0.3% and the S&P 500's growth of 6.9% [1][4][6] Financial Performance - In the first quarter of fiscal 2025, AngioDynamics reported overall net sales growth, but Med Device net sales experienced a decline due to inflationary pressures on raw materials, labor shortages, and freight costs, negatively impacting gross profit [3][8] - The company anticipates fiscal 2025 revenues between $282 million and$288 million, reflecting a growth of 4.2% to 6.4% from fiscal 2024, although the Zacks Consensus Estimate indicates a 6.5% decline compared to the previous fiscal year [7][18] Recent Developments - AngioDynamics announced the grant of Category I CPT for Irreversible Electroporation (IRE), which is expected to enhance reimbursement for healthcare providers and improve patient access to the NanoKnife System [2] - The company launched the Auryon 1.7mm catheter and is executing a full commercial launch of AlphaVac for pulmonary embolism in the U.S. and CE-marked countries [10] - AngioDynamics received European CE mark approval for the Auryon Atherectomy System, allowing it to market the system for treating Peripheral Artery Disease in Europe [14] Market Position and Strategy - The company is focusing on expanding cancer treatment options and improving patient quality of life, with strong market acceptance of its NanoKnife system for tumor treatment [8][9] - AngioDynamics is investing in three key technologies: AngioVac, Auryon, and NanoKnife, while also working to enhance the profitability of its other products [9] - The majority of growth in the first quarter was driven by the U.S. market, with expectations for continued growth from AlphaVac in the near term [12] Stock Valuation - AngioDynamics' forward 12-month price-to-sales (P/S) ratio is 0.9X, significantly lower than the industry average of 4.5X and its five-year median of 1.5X, indicating potential for growth [15][19]