Here's Why You Should Retain Edward Lifesciences (EW) for Now

Core Insights - Edwards Lifesciences Corporation is positioned for growth due to its differentiated portfolio of advanced therapies, particularly the SAPIEN 3 Ultra RESILIA platform, which leads in the U.S. and Japan [1] - The stock has gained 30.2% over the past six months, outperforming the industry and S&P 500 [2] - The company faces challenges from stiff competition and foreign exchange headwinds [1][7] Upsides - The Surgical Structural Heart segment is expected to maintain leadership in the global TAVR market by expanding patient access through current valve platforms [3] - The MOMENTIS clinical study is projected to complete U.S. and Canada enrollment by Q2 2024, a year ahead of schedule, with global enrollment continuing into 2025 [4] - TAVR sales have shown strong growth, with first-quarter 2024 sales exceeding $1 billion, marking an 8% year-over-year increase [5] Financial Position - The company has a solid balance sheet, exiting Q1 2024 with cash and cash equivalents of $1.69 billion, up from $1.64 billion in Q4 2023, and no near-term debt [6] - Long-term debt slightly increased to $597.2 million at the end of Q1 2024 [6] Downsides - Foreign exchange impacts are significant, with 42% of revenues coming from international markets, affecting gross margins [7] - The competitive landscape includes major players like Medtronic, Abbott Laboratories, and Boston Scientific, posing challenges in the TAVR market [9] Estimate Trends - The Zacks Consensus Estimate for 2024 EPS has increased from $2.76 to $2.77, with revenues expected to rise by 9.3% to $6.56 billion [10]