Inogen, Inc. INGN has been gaining on the back of its high prospects in the portable oxygen concentrator (POC) space. Solid performance in the second quarter of 2022 and a strong product portfolio also buoy optimism. Headwinds resulting from stiff competition and foreign exchange fluctuations are major downsides.
Over the past year, the Zacks Rank #1 (Strong Buy) stock has lost 50.1% compared with the 33.7% decline of the industry and 21.3% fall of the S&P 500.
The renowned provider of POCs has a market capitalization of $471.9 million. The company projects 40.3% growth for 2023 and expects to witness continued improvements in its business. Inogen surpassed the Zacks Consensus Estimates in three of the trailing four quarters and missed the same in one, delivering an earnings surprise of 90.5%, on average.
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Let’s delve deeper.
High Prospects in the POC Space: We are optimistic about the POCs’ superiority over conventional oxygen therapy (known as the delivery model). POCs provide unlimited oxygen supply anywhere, thereby enhancing patient independence and mobility. Management at Inogen expects this to have an incremental positive impact on its industry and POC adoption.
Product Portfolio: We are optimistic about Inogen’s expanding product portfolio. The company provides oxygen concentrator solutions for portable and stationary use. Notable products offered by the company include Inogen One G5 in the domestic business-to-business and direct-to-consumer channels, besides the Inogen One G3 and One G4 POC. Inogen At Home is aptly formulated for patients who need oxygen therapy during sleep.
Management confirmed Inogen’s plan to incorporate the Tidal Assist Ventilator directly into the Inogen One Portable Oxygen Concentrators and make the SideKick TAV product compatible with the Inogen At-Home Stationary Concentrator.
Strong Q2 Results: Inogen’s robust year-over-year uptick in overall and rental revenues in second-quarter 2022 buoy optimism. The strength in international business-to-business is encouraging. Inogen’s encouraging progress on its new commercial strategy for the prescriber channel raises our optimism. The continued strength across Inogen’s sales capabilities in the direct-to-consumer channel is also promising.
Stiff Competition: The long-term oxygen therapy (LTOT) market is a highly competitive industry. Inogen competes with a number of manufacturers and distributors of POC, as well as providers of other LTOT solutions such as home delivery of oxygen tanks or cylinders, stationary concentrators, transfilling concentrators and liquid oxygen. Given the relatively straightforward regulatory path in the oxygen therapy device manufacturing market, Inogen expects that the industry will become increasingly competitive in the future.
Forex Woes: Inogen generates a significant portion of its revenues from the international market. Management expects international revenues to remain lumpy owing to the timing and size of the distributor. It also expects adverse foreign currency exchange rates to impede revenue growth in the near term owing to the strengthening of the U.S. dollar against the Euro and other foreign currencies.
Inogen has been witnessing a positive estimate revision trend for 2022. Over the past 90 days, the Zacks Consensus Estimate for its loss per share has narrowed from $2.08 to $1.91.
The Zacks Consensus Estimate for third-quarter 2022 revenues is pegged at $97.6 million, suggesting a 4.8% improvement from the year-ago reported number.
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AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.2%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 15.7%.
AMN Healthcare has gained 15.7% compared with the industry’s 38.1% decline in the past year.
ShockWave Medical, sporting a Zacks Rank #1 at present, has an estimated growth rate of 33.5% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 180.1%.
ShockWave Medical has gained 27.8% against the industry’s 33.7% decline over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in three of the trailing four quarters and missed the same in one, the average beat being 13%.
McKesson has gained 75.6% against the industry’s 14.5% decline over the past year.
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McKesson Corporation (MCK): Free Stock Analysis Report
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