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With a market cap of $48.4 billion, Edwards Lifesciences Corporation (EW) is a global medical technology company specializing in innovative products for structural heart disease and critical care monitoring. Founded in 1958, the California-based company is recognized as a pioneer and market leader in transcatheter heart valve therapies. It also develops surgical heart valves, repair products for mitral and tricuspid valve disease, and advanced hemodynamic monitoring systems used in intensive care and operating rooms. Shares of the company have outperformed the broader market over the past 52 weeks. EW stock has increased 27% over this time frame, while the broader S&P 500 Index ($SPX) has gained 14%. However, shares of the company have risen 13.6% on a YTD basis, compared to SPX's 16.2% return. Looking closer, the stock has outpaced the Health Care Select Sector SPDR Fund's (XLV) 1.9% decrease over the past 52 weeks and 7.1% rise in 2025. On Oct. 30, Edwards Lifesciences posted its third-quarter reports, and its shares rose 1%. It reported $1.55 billion in revenue, up nearly 15% year over year, driven by strong performance across its portfolio, especially transcatheter mitral and tricuspid therapies, which surged more than 50%, and continued solid growth in its TAVR franchise. Adjusted EPS came in at $0.67, and although foreign exchange had a slight impact on margins, overall profitability remained healthy. For full-year 2025, Edwards Lifesciences lifted its guidance across key metrics, now expecting sales growth at the high end of its prior 9–10% range. The company also raised its TAVR revenue growth outlook to 7–8%, up from 6–7%, and increased its adjusted EPS forecast to $2.56–$2.62, compared to the previous high-end range of $2.45–$2.55, reflecting confidence in ongoing business momentum. For the fiscal year ending in December 2025, analysts expect EW’s adjusted EPS to grow 6.6% year-over-year to $2.59. The company's earnings surprise history is promising. It topped or met the consensus estimates in the last four quarters. Among the 31 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, two “Moderate Buy,” and 13 “Holds.” This configuration is bullish than three months ago, with 15 “Strong Buy” ratings on the stock. On October 9, UBS analyst Danielle Antalffy maintained a “Hold” rating on Edwards Lifesciences and set an $85 price target. The mean price target of $93.14 implies an upswing of 10.8% from the current market prices. The Street-high price target of $104 implies a modest potential upside of 23.7% from the current price levels.
