Glaukos Corporation GKOS has witnessed strong momentum in the year-to-date period. Shares of the company have surged 77.9% compared with 3.4% growth of the industry. The S&P 500 composite has risen 24.5% during the said time frame.

With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.

Headquartered in San Clemente, CA, Glaukos is an ophthalmic medical technology and pharmaceutical company. It is focused on developing and commercializing novel surgical devices and sustained pharmaceutical therapies designed to treat glaucoma. The company’s flagship iStent is the first FDA-approved surgical device available for insertion during cataract surgery.

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Catalysts Driving Growth

The recent rally in Glaukos' share price can be attributed to the strength in its flagship iStent product, fueled by strong revenue growth in the first nine months of 2024 and positive business prospects. Investors are particularly optimistic about the continued demand across its international glaucoma and Corneal Health franchises. The successful development of GKOS’ next-generation corneal cross-linking iLink therapy for the treatment of keratoconus also raises optimism.

During the third quarter, GKOS’ glaucoma franchise witnessed revenue growth, driven by its iStent portfolio, coupled with growing contributions from iDose TR. The company reported the successful execution of detailed launch plans for iDose TR during the third quarter. The unique permanent J-code for iDose TR became effective on July 1. This is likely to increase patient access, driving sales growth in the upcoming quarters. Per management, during the reported quarter, five of the seven Medicare Administrative Contractors issued final local coverage determinations for microinvasive glaucoma surgery that will establish coverage for iStent infinite.

Glaukos’ revenues outpaced expectations in the first half of 2024, driven by robust product demand. The company registered revenues of $96.7 million in the third quarter, up 23.9% year over year. This caused GKOS to raise its full-year sales guidance to $377-$379 million from the prior estimate of $370-$376 million, contributing to the stock’s upward momentum.

Additionally, Glaukos is making significant progress with its product pipeline. It is on track to submit an NDA for its corneal cross-linking therapy, Epioxa, by the end of 2024. Last month, GKOS announced that the second Phase 3 confirmatory pivotal trial for Epioxa successfully met the study’s pre-specified primary efficacy endpoint. The results demonstrated a clinically relevant and statistically significant improvement in maximum corneal curvature (Kmax) at 12 months from baseline between the Epioxa treated and the sham/placebo-controlled arms.

The company also plans to initiate a pivotal study for its next-generation iDose therapy, iDose TREX, by year-end, positioning it for long-term growth.

International expansion continues to be a priority for Glaukos. In the first nine months of 2024, its International Glaucoma franchise delivered record sales of $83.5 million, representing 17% year-over-year growth. The company is focused on scaling up its global infrastructure and establishing MIGS as a standard of care in multiple regions, supporting its long-term growth prospects.

Risk Factors

A potential risk for investors is that Glaukos relies on a limited number of third-party suppliers for components of the iStent, iStent inject models and pipeline products. If any of these suppliers delays or stops providing components or drugs or changes its terms, Glaukos may face challenges in securing alternative supply sources.

A Look at Estimates

The loss per share estimate for 2024 and 2025 implies a year-over-year improvement of 13.7% and 42.6%, respectively, to $1.96 and $1.13.

In the past 30 days, the Zacks Consensus Estimate for the company's 2024 loss has narrowed 10.5%.

Revenues for 2024 and 2025 are anticipated to rise 20.3% and 25.8%, respectively, to $378.7 million and $476.2 million on a year-over-year basis.

Glaukos Corporation Price

Glaukos Corporation price | Glaukos Corporation Quote

Other Key Picks

Some other top-ranked stocks from the medical industry are Masimo MASI, AngioDynamics ANGO and Globus Medical GMED.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 13.5% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Masimo’s shares have risen 40.7% year to date compared with the industry’s 3.4% growth.

AngioDynamics, carrying a Zacks Rank #2 at present, has an estimated growth rate of 38.2% for 2025. ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 14% year to date against the industry’s 3.4% growth.

Globus Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 14.1%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 56.9% year to date compared with the industry’s 3.4% growth.

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