Every stock experiences ups and downs. And there is a time when you should buy or a time when you should wait. If the stock is trading too high, then it’s better to wait until the price lowers. However, now is an excellent time to buy ConforMIS. This medical stock has an attractive entry price of $0.79 per share.
While the coronavirus pandemic has taken a toll on the company, it still has many pros. Analysts recently rated this stock as a strong buy. ConforMIS applies a new approach to orthopedics. It combines advanced 3D imaging technology with the latest manufacturing capabilities. As a result, the company produces implants based on each patient’s unique size and shape.
Experts like the LT opportunity of custom orthopedic implants, especially considering growing expectations for the shift of procedures into an ASC/outpatient setting. This sort of setting favors ConforMIS’s “implant-in-a-box” product offering.
The company’s underlying execution was trending positively before the pandemic. Analysts expected its first-quarter revenue to reflect a 3% year-over-year decline. But the firm suffered a 20.2% drop with a slowdown due to the epidemic persisting throughout April.
What do analysts say?
According to Kyle Rose, the Canaccord analyst, elective procedure volumes will probably be significantly depressed through at least the second quarter. Despite that, he believes investors will see quarter-over-quarter improvements with gains dramatically increasing in the latter half of the year. Management saw an uptick in order volumes over the last week of April and the first week of May.
According to management, the shift of orthopedic surgery toward the outpatient/ASC setting is accelerating. ConforMIS’s expects procedures to continue trending higher in the latter half of the year.
Furthermore, the company’s development agreement with SYK’s Triathlon system may be commercially available by mid-2021. Considering all that, Rose advises buying this stock now. They set a $2 price target. In the case of success, shareholders could gain 152% during the next twelve months.