8. Edwards Lifesciences Corporation (NYSE:EW)
Number of Hedge Fund Holders: 55
Edwards Lifesciences Corporation (NYSE:EW) develops medical innovations for heart disease and critical care monitoring. Its products are categorized into four primary areas: Transcatheter Aortic Valve Replacement, Transcatheter Mitral and Tricuspid Therapies, Surgical Structural Heart, and Critical Care.
The company is considered a leader in the MedTech space due to its health value solutions and strong market position. Its stock has grown at a compound annual growth rate of around 16% over the past two decades. Although Edwards Lifesciences Corporation (NYSE:EW) has faced some headwinds in its recent transitional period, it is well-positioned for long-term growth. It has more than tripled its revenue and operating income over the last 12 years and has maintained operating margins over 25%. These historical trends reflect its strong business model.
Edwards Lifesciences Corporation (NYSE:EW) holds around 50% market share in the $7 billion transcatheter aortic valve replacement (TAVR) market. Its products in the sector are responsible for approximately 75% of the company’s revenue. Its focus on innovative solutions and products for structural heart disease thus lends it a competitive market advantage. The company ranks eighth on our list of the best medical device stocks to buy according to hedge funds.
Wedgewood Partners stated the following regarding Edwards Lifesciences Corporation (NYSE:EW) in its Q4 2024 investor letter:
“Edwards Lifesciences Corporation (NYSE:EW) was a contributor to quarterly performance but only slightly impacted annual portfolio performance. As we noted earlier this year, the Company’s flagship transcatheter aortic valve replacement (TAVR) franchise slowed as compared to the Company’s recent history. While the TAVR market is maturing, it is still far from saturated, as recent clinical trial results demonstrated. Many aortic stenosis patients prior to seeking TAVR treatment exhibit adverse symptoms, often prompting them to get the help of a doctor in the 7irst place. However, there is a large population afflicted with aortic stenosis that does not exhibit symptoms, which are monitored rather than treated with TAVR. Edwards presented data from its EARLY TAVR trial that showed 45 percent of untreated asymptomatic aortic stenosis exhibited no symptoms, still ended up dying, suffered a stroke, or were hospitalized for cardiac events compared to only 26 percent that had been treated with TAVR. The standard of care for a disease such as cancer is immediate intervention rather than waiting for symptoms to worsen. The EARLY trial could help position aortic stenosis treatment on a similar clinical footing as cancer treatment. Although this is just one study, it adds to the substantial body of knowledge that Edwards has created through its R&D investments, emphasizing how important their treatments are for patients. Edwards is well positioned for double-digit earnings growth over the next several years as they expand its structural heart franchise into new populations and indications.”
