Penumbra Inc. (NYSE: PEN) is one of the most promising stocks to watch in the current market. This company develops innovative medical devices for neurosurgeons, radiologists, cardiologists, and vascular surgeons. Strong earnings growth is on the horizon, and this is likely to contribute to a significant upside over today’s share price.
Despite the Coronavirus Pandemic and reduced spending on elective medical care, Penumbra had a positive fiscal year in 2020 with sales growth of 2.38% contributing to a gross profit margin of 60.20%. The current fiscal year is expected to be much stronger with estimated earnings growth of 75%.
The release of Coronavirus vaccines in the United States and globally will help the healthcare market return to a new normal, and Penumbra is ready to supply the products that highly specialized surgeons and medical technicians need. The average target price of $308.00 reflects the stock’s potential to grow along with company earnings, the high-end target price of $325.00 suggests that the gains could be even stronger providing that the market stays favorable.
For the strong upside, this is one of the best stocks to watch in 2021.
- 1 Year Price Growth: 79%
- YTD Price Growth: 07%
- 3 Month Price Growth: 04%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.