Merit Medical Systems, Inc. (MMSI) Hits Fresh High: Is There Still Room to Run?

Company Performance - Merit Medical (MMSI) shares have increased by 8.8% over the past month and reached a new 52-week high of $102.88, with a year-to-date gain of 34.2% compared to 4% for the Zacks Medical sector and 4.3% for the Zacks Medical - Dental Supplies industry [1] - The company has consistently exceeded earnings expectations, reporting EPS of $0.86 against a consensus estimate of $0.80 in its last earnings report on October 30, 2024, and beating revenue estimates by 1.44% [2] - For the current fiscal year, Merit Medical is projected to achieve earnings of $3.35 per share on revenues of $1.35 billion, reflecting an 11.3% increase in EPS and a 7.15% increase in revenues [3] Valuation Metrics - Merit Medical has a Value Score of C, a Growth Score of B, and a Momentum Score of C, resulting in a VGM Score of B [6] - The stock trades at 30.4X current fiscal year EPS estimates, which is above the peer industry average of 18.9X, and at 21.1X trailing cash flow compared to the peer group's average of 17.1X [7] - The PEG ratio stands at 2.54, indicating that the company is not in the top tier from a value perspective [7] Zacks Rank - Merit Medical holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, meeting the criteria for investors looking for stocks with strong potential [8] Industry Comparison - The Medical - Dental Supplies industry is positioned in the top 30% of all industries, suggesting favorable conditions for both Merit Medical and its peer, Cardinal Health, Inc. (CAH) [11] - Cardinal Health has a Zacks Rank of 2 (Buy) and is expected to post earnings of $7.74 per share on revenues of $217.08 billion for the current fiscal year, with shares gaining 3.9% over the past month [10]