$ABMD Abiomed

An old freind of the board, still strong.

When Abiomed last reported earnings in May, the company reported its 10th straight quarter of 30%+ sales growth. Sales rose 33% to $124.7 million, while earnings growth accelerated for the second straight quarter, rising 67% to 40 cents a share. It ended the quarter with $277.1 million in cash with no debt.

Fiscal first-quarter results are due Thursday before the open. Quarterly profit is forecast to rise 45% to 42 cents a share, with sales up 27% to $130.9 million.

The growth runway still looks solid for Abiomed. For fiscal 2018, the company is expected to earn $1.84 a share, up 48%. Fiscal 2019 earnings are seen rising 41% to $2.60.

Fast growth like this is often rewarded with a high valuation, and that’s certainly the case with Abiomed. Its current price-earnings ratio is 102 and its forward P-E ratio is 80. Abiomed’s current P-E is calculated using the last four quarters of earnings per share. The forward P-E is calculated using the next four quarters of estimated earnings per share.

No doubt Abiomed is a pricey stock valuation-wise, but keep in mind that just like cheap stocks are cheap for a reason in the stock market, expensive ones are often expensive for good reason

Reports 7/27/17. Always tough to buy right before earnings.

For chart readers, its pivot is 147.55, which it just passed today on very strong volume, making it buyable up to 5% above that point (if you are that kind of speculator).


IBD growth rankings: (top notch)

Composite Rating 99 Pass
EPS Rating 98 Pass
RS Rating 86 Pass
Group RS Rating A+ Pass
SMR Rating A Pass
Acc/Dis Rating B+ Pass