Edwards Lifesciences Corporation (EW), headquartered in Irvine, California, provides products and technologies for structural heart disease and critical care monitoring. Valued at $41.4 billion by market cap, the company offers products such as tissue replacement heart valves, heart valve repair, hemodynamic monitoring devices, angioscopy equipment, oxygenators, and pharmaceuticals.

Shares of this leading global structural heart innovation company have underperformed the broader market considerably over the past year. EW has gained 3.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.1%. In 2024, EW stock is down 8.8%, compared to the SPX’s 24.1% rise on a YTD basis. 

Narrowing the focus, EW’s underperformance is apparent compared to the iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has gained about 21.7% over the past year. Moreover, the ETF’s 11.1% gains on a YTD basis outshine the stock’s single-digit losses over the same time frame.

On Oct. 24, EW shares closed down marginally after reporting its Q3 results. Its adjusted EPS of $0.67 met Wall Street expectations. The company’s revenue stood at $1.4 billion, up 8.9% year over year. For Q4, EW expects revenue to be between $1.3 billion and $1.4 billion.

For the current fiscal year, ending in December, analysts expect EW’s EPS to grow 2.4% to $2.57 on a diluted basis. The company’s earnings surprise history is impressive. It beat or matched the consensus estimate in each of the last four quarters.

Among the 27 analysts covering EW stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and 18 “Holds.”

This configuration is less bullish than a month ago, with nine analysts suggesting a “Strong Buy.”

On Oct. 29, Oppenheimer analyst Suraj Kalia maintained a “Buy” rating on EW with a price target of $90, implying a potential upside of 29.4% from current levels. Meanwhile, the mean price target of $74.67 represents a 7.4% premium to EW’s current price levels.