AngioDynamics, Inc. ANGO is well-poised for growth in the coming quarters, courtesy of its potential in NanoKnife System. The positive outlook for the stock is driven by NanoKnife's strong performance and successful geographic expansion. However, pricing pressure and macroeconomic factors are concerns.

Shares of this Zacks Rank #1 (Strong Buy) company have lost 2.4% year to date against the industry's 8.3% growth. The S&P 500 Index has gained 20% in the said time frame.

The company designs, manufactures and sells a wide range of medical, surgical, and diagnostic devices, which are generally utilized in minimally invasive, image-guided procedures and has a market capitalization of $310.85 million. It projects 7.6% earnings growth for fiscal 2026 and expects to maintain its strong performance. In the trailing four quarters, AngioDynamics surpassed earnings estimates thrice and missed on one occasion, the average beat being 28.61%.

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Factors Favoring ANGO Stock

Broad Product Line: AngioDynamics is a key player in minimally invasive medical devices, specializing in vascular access, surgery, peripheral vascular disease and oncology. Its product portfolio includes innovative solutions like Microwave Ablation, Radiofrequency Ablation (RFA), and the NanoKnife system, which is experiencing strong demand for tumor treatments.

The company is prioritizing research and development (R&D) investments to enhance its core technologies — AngioVac, Auryon, and NanoKnife — projecting a CAGR of 1.3% in R&D expenses from fiscal 2024 to 2027. Recent regulatory achievements, including a CE Mark approval in May and the FDA clearance for the AlphaVac F18 System, have enabled its commercial launch in the United States and CE Mark countries. These strategic initiatives position AngioDynamics for sustained growth in the medical device market.

Potential in NanoKnife System: AngioDynamics is experiencing solid growth in its Med Tech segment, particularly with its NanoKnife product. The product received FDA clearance for soft tissue surgical ablation and was designated as a Breakthrough Device under the 21st Century Cures Act. In the fourth quarter of fiscal 2024, net sales of the Med Tech segment increased 11.3% year over year, bolstered by an 18% rise in NanoKnife disposable sales.

Management reported a 247.8% surge in capital sales, reflecting strong demand for disposables. It anticipates FDA clearance for NanoKnife in prostate ablation by the end of 2024, enabling a commercial launch and a specific CPT code for reimbursement clarity.

Our model projects AngioDynamics' revenues to witness a 5.9% CAGR from fiscal 2024 to 2027, fueled by a 10.3% CAGR in the Med Tech segment. The company expects its bottom line to witness a 15.8% CAGR during the same period.

Strong Geographic Expansion: AngioDynamics achieved 85.6% of fiscal 2024 net sales from the United States, up from 83.5% in 2023, driven by rising demand from medical professionals. International sales, accounting for 14.4%, grew 14%, bolstered by distributor relationships, including $1.4 million in sales to Iran. U.S. revenues increased 4.3% in the fourth quarter of 2024. The company anticipates steady growth at a CAGR of 2.2% in the United States and 0.5% internationally through 2027.

Downsides

Pricing Pressure: AngioDynamics faces risks to its stock performance due to reliance on higher-priced products amid increased competition, healthcare provider consolidation, and declining reimbursement rates. Group purchasing organizations and integrated delivery networks further limit pricing flexibility, potentially hindering contract retention and impacting profitability and stock outlook

Macroeconomic Concerns: AngioDynamics faces challenges from global economic conditions, including supply chain disruptions and weak financial results. In the fourth quarter of fiscal 2024, the gross margin dropped to 54.3%, with rising sales, marketing, and administrative costs. Growing costs and expenses could further strain profitability through fiscal 2027.

Estimate Trend

AngioDynamics is witnessing a positive earnings estimate revision trend for 2024. In the past 60 days, the Zacks Consensus Estimate for loss has narrowed from 47 cents to 41 cents per share.

The Zacks Consensus Estimate for the company’s third-quarter 2024 revenues and loss per share is pegged at $68.49 million and 15 cents, respectively, suggesting a 13% and 25% decline from the year-ago quarter’s reported numbers.

AngioDynamics, Inc. Price

AngioDynamics, Inc. price | AngioDynamics, Inc. Quote

Other Key Picks

Some other top-ranked stocks in the broader medical space are Tenet HealthCare (THC), ATI Physical Therapy (ATIP) and Aveanna Healthcare AVAH. While Tenet HealthCare sports a Zacks Rank #1, ATI Physical Therapy and Aveanna Healthcare carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tenet HealthCare has an estimated long-term growth rate of 18.3%. THC's earnings surpassed estimates in each of the trailing four quarters, with the average being 58.5%.

Tenet HealthCare has gained 119.9% compared with the industry's 48.6% growth year to date.

ATI Physical Therapy's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.25%.

ATIP's shares have gained 5.5% year to date compared with the industry’s 18.6% growth.

Aveanna Healthcare's earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 47.5%.

AVAH's shares have surged 104.5% year to date compared with the industry’s 15.7% growth.

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