S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
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Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead
S&P 500   4,981.80
DOW   38,612.24
QQQ   425.61
Palo Alto Networks, Keysight fall; Garmin, Toll Brothers rise, Wednesday, 2/21/2024
Is Gold Really Boring? (Ad)
Palo Alto Networks aims at cyber security leadership
Spotify sounding better to analysts as company tunes into profits
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
3 Reasons the Capital One-Discover merger is a big deal
How major US stock indexes fared Wednesday, 2/21/2024
Gold Could Be Heading for Record Highs - But How to Play It? (Ad)
Germany says Europe's largest economy is in 'troubled waters' and cuts its growth forecast
Range-bound Home Depot stock still is, lower prices ahead

Is This Medical Gear Maker Ready To Continue Its Rally?

Is This Medical Gear Maker Ready To Continue Its Rally? We’ve all seen those commercials where someone has to get up frequently during the night to urinate; Axonics NASDAQ: AXNX is a company whose products address that problem. 

The stock rallied to a high on Monday then pulled back along with the broader market. 

The Irvine, California company specializes in sacral neuromodulation (SNM) systems. These are used to treat people with overactive bladders. Symptoms include urinary urge incontinence and the urge to urinate frequently. The company’s products treat other related conditions, such as bowel control issues. 

So what exactly are SNM systems? Axonics is not a pharmaceutical company; instead, it’s a medical gear maker. The company’s implantable Axonics R15 and F15 create neurostimulation to help patients regain bowel and bladder control. 

Medtronic NYSE: MDT is a rival in this space, with its InterStim bladder control therapy.

The two companies had previously been engaged in a patent dispute over SNM devices. 

One of Axonics’ selling points is that its systems are compatible with full-body MRIs in many cases. That means magnets won’t interfere with the MRI scan, a big convenience factor for patients wearing internal devices. 

The company also offers an externally-worn trial device, so patients can get an understanding of how the gear functions. 


Another product is Bulkamid, an injectable treatment for stress urinary incontinence, a condition when urine leaks out during moments of physical activity that increases abdominal pressure, such as coughing, sneezing or exercise. Axonics acquired Bulkamid in 2021. 

Young Company In Fast Growth Mode

The company had its IPO in 2018, meaning it's still well within the period of time when a stock is likely to notch big price gains. That’s indeed been the case, as the stock advanced 6.77% in the past month, 55.18% in the past three months and 38% year-to-date. 

Last week, Axonics said the University of Alberta in Canada had implanted four patients with the company’s F15 system. It marked the company’s first foray into the Canadian market. 

After that announcement, the stock vaulted 5.02% in trading volume 87% higher than normal. Turnover was also heavy as the stock advanced in the following session, then rallied to a new high on Monday. 

Axonics reported its second quarter on August 1. The company is not yet profitable, which is not unusual for medical technology companies in their early growth years.

However, revenue has increased at double- or triple-digit rates in each of the past eight quarters. Year-over-year sales were increasing even during the pandemic, when many medical procedures were postponed. Its three-year revenue growth rate is a stellar 283%. 

There was good news in the report: The second-quarter loss was narrower than analysts expected and revenue beat views, according to data compiled by MarketBeat

Analysts Boosting Price Targets

Turning to MarketBeat price target data, analysts have a “buy” rating on the stock, with a consensus target of $77.86, just $0.92 from where it’s currently trading. 

Since the earnings report, five analysts boosted their price target on the stock. 

In the earnings release, CEO Raymond Cohen said, “Sacral neuromodulation revenue grew 39% year over year, benefiting from the broad commercial launch of the Axonics F15, our newly developed, long-lived, recharge-free sacral neuromodulation system. Bulkamid generated another quarter of record revenue and we now expect approximately 50,000 women will have their stress urinary incontinence symptoms treated with Bulkamid in 2022.”

Cohen credited a TV campaign, which began in April, for lifting awareness of the company’s therapies. 

The company increased its guidance for fiscal year 2022. It now expects: 

  • Total company revenue of $253 million, an increase of 40% compared to fiscal year 2021. This compares to prior revenue guidance of $238 million.
  • Sacral neuromodulation revenue of $205 million, an increase of 30% compared to fiscal year 2021.
  • Bulkamid revenue of $48 million, an increase of 111% compared to fiscal year 2021.

There’s plenty of good news here, but always use caution when investing in a stock that’s not yet profitable. On the other hand, many medical startups set themselves up as acquisition targets. A company like Axionics that is rapidly growing revenue could be a good candidate for an acquisition down the road. 
Is This Medical Gear Maker Ready To Continue Its Rally?

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Should you invest $1,000 in Axonics right now?

Before you consider Axonics, you'll want to hear this.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Axonics (AXNX)
3.4386 of 5 stars
$67.88-0.1%N/A-271.52Hold$71.09
Medtronic (MDT)
4.758 of 5 stars
$85.90+0.1%3.21%27.36Hold$94.25
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Kate Stalter

About Kate Stalter

  • stalterkate@gmail.com

Contributing Author

Retirement, Asset Allocation, and Tax Strategies

Experience

Kate Stalter has been a contributing writer for MarketBeat since 2021.

Additional Experience

Series 65-licensed investment advisor, financial advisor, Blue Marlin Advisors; investment columnist for Forbes, U.S. News & World Report

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Asset allocation, technical and fundamental analysis, retirement strategies, income generation, risk management, sector and industry analysis

Education

Bachelor of Arts, Saint Mary’s College, Notre Dame, Indiana; Master of Business Adminstration, Kellogg School of Management at Northwestern University

Past Experience

Founder, financial advisor for Better Money Decisions; editor, stock trading instructor for Investor’s Business Daily; columnist, podcast host, video host for MoneyShow.com; contributor for Morningstar magazine


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