Achieved record performance in Q4 2025, validating management's view that Q3 seasonality was transient and that the U.S. transplant market would recover in the final quarter. Demonstrated market expansion rather than just share-taking, with data showing U.S. liver, heart, and lung volumes grew 25% since 2022 with OCS NOP, but would have declined 1% without it. Attributed strong liver performance to clinical leadership and execution excellence, with OCS Liver now representing 36% of the total U.S. live ...

Core Insights - Glaukos reported a quarterly loss of $0.28 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.22, representing an earnings surprise of -26.47% [1] - The company achieved revenues of $143.12 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 0.13% and showing a year-over-year increase from $105.5 million [2] - The stock has underperformed the market, losing about 3.1% since the beginning of the year compared to the S&P 500's decline of 0.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.18 on revenues of $131.98 million, and for the current fiscal year, it is -$0.33 on revenues of $610.61 million [7] - The estimate revisions trend for Glaukos was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical - Instruments industry, to which Glaukos belongs, is currently ranked in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, TransMedics, is expected to report quarterly earnings of $0.41 per share, reflecting a year-over-year change of +115.8%, with revenues projected to be $155.91 million, up 28.2% from the previous year [9][10]

分组1 - DexCom reported quarterly earnings of $0.68 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and showing an increase from $0.45 per share a year ago, representing an earnings surprise of +4.62% [1] - The company achieved revenues of $1.26 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.64% and up from $1.11 billion year-over-year [2] - DexCom has outperformed the market with a 2.7% increase in shares since the beginning of the year, compared to the S&P 500's gain of 1.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.48 on revenues of $1.18 billion, and for the current fiscal year, it is $2.47 on revenues of $5.22 billion [7] - The Medical - Instruments industry, to which DexCom belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]

Core Thesis - TransMedics Group, Inc. (TMDX) is positioned favorably in the organ transplantation market with its innovative Organ Care System, which enhances organ viability and expands the transplantable organ pool [2][3]. Company Overview - TransMedics is a U.S.-based medtech company that has shifted from selling hardware to a recurring-revenue model, retaining ownership of its Organ Care System consoles and generating revenue from high-margin consumables and clinical services [2]. - The company has developed a comprehensive approach that includes training and certification for hospital staff, creating significant switching costs and integrating deeply into transplant workflows [3]. Technology and Market Position - The Organ Care System technology is recognized as superior to competitors, with FDA approvals for heart, lung, and liver transplants, and kidney applications anticipated by 2027 [3]. - By extending preservation times and minimizing cold ischemia, TransMedics addresses inefficiencies in organ donation, potentially increasing the overall transplant market [3]. Financial Performance - TransMedics achieved profitability in 2024, with Q3 2025 revenue reported at $144 million and gross margins nearing 60% [4]. - The company holds approximately 19% market share in U.S. heart, lung, and liver transplants, with opportunities for increased penetration and entry into kidney transplants [4]. Growth Potential - Management targets operating margins of 30% and aims for significantly higher transplant volumes, indicating a strong multi-year growth outlook [5]. - Potential international expansion and entry into kidney transplants could further enlarge the addressable market, although challenges exist in Europe due to existing protocols and lower-cost alternatives [4][5]. Stock Performance - TMDX's stock price has increased by approximately 45.04% since previous bullish coverage, driven by improving profitability and adoption momentum [6].

Group 1 - TransMedics Group (TMDX) is highlighted as a focus on the IBD 50 Growth Stocks To Watch list, indicating strong market interest and potential for growth [1] - The company specializes in preserving organs for transplant, achieving utilization rates of at least 96% for organ transplants using its technology, which underscores its effectiveness in the medical technology sector [1] - TransMedics Group has received a Relative Strength Rating upgrade, indicating improved price strength and market performance, with ratings over 90, suggesting strong investor confidence [1] Group 2 - Analysts predict that earnings for TransMedics Group are expected to surge again, indicating positive financial outlook and potential for increased stock value [1] - The company is nearing a buy point, which suggests that it may be an opportune time for investors to consider purchasing shares [1] - The stock has shown improved relative strength, hitting benchmarks above 80, which is a positive indicator for potential investors [1]

Core Insights - Sustained outperformance in MedTech requires structural demand drivers, improving execution, and clear earnings visibility rather than just short-term market rallies [2][6] - A select group of MedTech stocks, including TransMedics (TMDX), KORU Medical Systems (KRMD), and Cardinal Health (CAH), have significantly outperformed the S&P 500, which rose 19.3% over the past year [3][8] TransMedics (TMDX) - TMDX shares increased by 89.8% over the past year, driven by the adoption of its Organ Care System (OCS) and the expansion of its National OCS Program (NOP) [7][10] - The company reported revenues of $143.8 million in Q3 2025, reflecting a 32% year-over-year growth, with service revenues rising 35% [9][10] - The Zacks Consensus Estimate for 2026 sales is $723.8 million, indicating approximately 20.5% growth, with plans for European expansion [10][11] KORU Medical Systems (KRMD) - KRMD achieved a 45.5% stock growth over the past year, with Q3 2025 revenues of $10.4 million, marking a 27% year-over-year increase [13][15] - Core SCIg revenues grew about 30%, supported by international expansion and market share gains, despite a dip in U.S. revenues due to inventory adjustments [14][15] - The Zacks Consensus Estimate for 2026 sales is $49 million, implying 20.2% growth, with ongoing advancements in non-Ig drug collaborations [15][16] Cardinal Health (CAH) - CAH stock surged by 35.3% over the past year, with Q1 fiscal 2026 revenues of $64 billion, up 22% year-over-year, and earnings per share of $2.55, representing 36% growth [18][20] - The Pharmaceutical and Specialty Solutions segment led performance, with 23% revenue growth and 26% profit growth [19][20] - Management raised full-year fiscal 2026 earnings per share guidance to $9.65-$9.85, indicating 17-20% growth, while also returning $500 million to shareholders [20][21]

Core Viewpoint - Investors are increasingly focusing on heavily shorted stocks, either to capitalize on further declines in value or to benefit from potential short squeezes [1][3]. Group 1: Characteristics of Heavily Shorted Stocks - A stock is considered "heavily shorted" when a significant number of traders and institutional investors believe it is fundamentally overvalued, leading to expectations of a price decline [2]. - High short interest often indicates a strong conviction among professional traders that the company faces serious risks, while retail traders may see it as an opportunity for rapid gains through a short squeeze [3]. Group 2: Short Squeeze Dynamics - A short squeeze occurs when a stock's price unexpectedly rises, forcing short sellers to buy back shares to cover their positions, which creates a spike in demand and further drives up the price [4]. - The volatility associated with a short squeeze can result in returns that significantly exceed typical stock movements within a short time frame [4]. Group 3: Most Heavily Shorted Stocks - As of December 29, the following stocks are the most heavily shorted, with market caps above $2 billion and free floats above 5 million: - Lucid Group, Inc. (NASDAQ:LCID) - 54.51% - Choice Hotels International, Inc. (NYSE:CHH) - 50.20% - Avis Budget Group, Inc. (NASDAQ:CAR) - 48.80% - Revolve Group, Inc. (NYSE:RVLV) - 43.14% - Medical Properties Trust, Inc. (NYSE:MPW) - 37.13% - MARA Holdings, Inc. (NASDAQ:MARA) - 36.23% - Hims & Hers Health, Inc. (NYSE:HIMS) - 35.22% - TransMedics Group, Inc. (NASDAQ:TMDX) - 35.11% - Kohl's Corporation (NYSE:KSS) - 34.27% - Northern Oil & Gas, Inc. (NYSE:NOG) - 33.27% [5][6].

Core Insights - Investing in growth stocks allows participation in innovative industries driving economic change, particularly in healthcare and technology [1][2] - Quality growth stocks can provide high returns over time, although they are more volatile compared to value-oriented businesses [1][2] Company Analysis: Intuitive Surgical - Intuitive Surgical dominates the multi-billion dollar surgical robotics market with its da Vinci systems, generating about 85% of its revenue from high-margin recurring instruments and services [5][6] - The company has a strong balance sheet with $8.4 billion in cash and low leverage, enabling significant investment in growth and resilience during economic downturns [6] - In Q3 2025, procedure volumes increased by 20% and revenue grew by 23%, with the global robotic surgery market expected to grow at a CAGR of over 14% through 2030 [7][10] - The launch of the next-generation da Vinci 5 system, featuring advanced AI capabilities, is a key growth driver, with 240 systems installed in Q3 2025, up from 110 the previous year [9][10] Company Analysis: TransMedics Group - TransMedics Group is known for its Organ Care System (OCS), the only FDA-approved portable platform for warm perfusion and assessment of donor organs, improving donor pool utilization and surgical outcomes [11][12] - The company reported Q3 2025 revenue of $143.8 million, a 32% year-over-year increase, and earnings of $24.3 million, a 478% increase from the previous year [12] - TransMedics is advancing its OCS pipeline and international presence, with FDA approvals for clinical trials of its next-generation OCS Heart and OCS Lung systems [14][15] - A collaboration with Mercedes-Benz Group AG aims to enhance organ transportation logistics in Italy, utilizing specialized vehicles for organ transplantation [16]

Industry Overview - The MedTech sector is navigating a global economy characterized by slowing growth, moderating inflation, and heightened geopolitical uncertainty, impacting healthcare spending and capital allocation decisions [1][2] - Despite challenges such as higher input costs and labor shortages, demand for advanced medical technologies remains steady due to the sector's essential nature and long-term innovation cycle [1][2] Economic Outlook - The IMF forecasts gradual deceleration of global growth through 2026, with advanced economies growing slower than emerging markets, while global inflation is expected to ease unevenly across regions [2] - Slower economic growth may constrain healthcare budgets, but moderating inflation and improved financial conditions could alleviate cost pressures and stabilize procurement trends [2][3] Future Projections - By 2026, the MedTech sector is anticipated to benefit from a more stable macro environment if inflation continues to decline and financing conditions remain favorable [3] - Demand is expected to favor technologies that enhance efficiency, outpatient care, and automation, positioning strong MedTech companies for better performance in a slower-growth economy [3] Investment Considerations - Investors may need to reassess MedTech companies that have seen significant gains but could face challenges in 2026 due to selective hospital spending and increased competition [4][9] - Companies like Globus Medical, TransMedics, and Hims & Hers have experienced strong growth driven by innovation, but sustaining this momentum may be difficult as macro conditions normalize [4][8][9] Company Highlights - **Globus Medical (GMED)**: Reported solid growth in Q3 2025, with a projected EPS and revenue increase of 3.9% and 7.9% respectively for 2026. The stock gained 3.8% over the past year [10][11] - **TransMedics (TMDX)**: Announced strong Q3 2025 results and a strategic collaboration for organ transportation. Expected EPS and revenue growth of 2.4% and 20.4% respectively for 2026. The stock surged 101.4% over the past year [12][14] - **Hims & Hers (HIMS)**: Reported strong Q3 2025 results with growth in subscribers and revenue. Projected EPS and revenue growth of 22.3% and 17.6% respectively for 2026. The stock increased by 32.6% over the past year [15][18]

Core Insights - Investment strategist Shay Boloor has identified ten sub-$10 billion market-cap companies poised to benefit from long-term trends leading into 2026, focusing on essential platforms and hard infrastructure rather than short-term narratives [1][19] Company Summaries - **Ondas Holdings (NASDAQ: ONDS)**: Developing a wireless connectivity layer for industrial and autonomous drones, with strong revenue growth momentum and a year-to-date stock increase of over 230% [2][3] - **Cipher Mining (NASDAQ: CIFR)**: Transitioning to a digital infrastructure owner with large-scale power and data-center assets, stock up over 250% year to date [6] - **Jumia Technologies (NYSE: JMIA)**: Refining its e-commerce and logistics model in Africa, with improved order volumes and a stock gain of about 215% [7] - **DigitalOcean Holdings (NYSE: DOCN)**: Regaining investor confidence with strong earnings and positioning as an AI inference cloud, stock up 40% year to date [8] - **IREN Limited (NASDAQ: IREN)**: Expanding compute capacity with record profitability and a nearly 285% stock increase [9] - **ClearPoint Neuro (NASDAQ: CLPT)**: Advancing image-guided navigation platforms for neurosurgeons, with a stock decrease of 18% year to date [10] - **Eos Energy Enterprises (NASDAQ: EOSE)**: Developing zinc-based energy storage systems for high-load environments, stock up 170% year to date [11] - **Navitas Semiconductor (NASDAQ: NVTS)**: Supplies gallium nitride power chips for AI data centers, stock up 145% year to date despite near-term pressures [14] - **Viking Therapeutics (NASDAQ: VKTX)**: Developing GLP-1 therapies for obesity and diabetes, with a stock decrease of about 10% [16] - **TransMedics Group (NASDAQ: TMDX)**: Scaling its organ care system with a focus on logistics, stock up about 90% [18]