12 Cheap Healthcare Stocks to Buy Heading into 2025

2. Edwards Lifesciences Corporation (NYSE:EW)

P/E Ratio: 10.73 

Edwards Lifesciences Corporation (NYSE:EW) is a medical technology company specializing in devices for cardiovascular diseases, including structural heart disease and critical care. Its products include surgical and transcatheter heart valves (e.g., SAPIEN valves), hemodynamic and pressure monitoring devices, and vascular solutions like Fogarty catheters and carotid shunts.

In Q3 2024, Edwards Lifesciences Corporation (NYSE:EW) delivered strong financial performance, surpassing earnings expectations. Their revenue grew 9.6% on a constant currency basis to $1.35 billion which was driven by robust results in Transcatheter Aortic Valve Replacement (TAVR) and Transcatheter Mitral and Tricuspid Therapies (TMTT). The company reported an adjusted EPS of $0.67, slightly exceeding the projected $0.665, reflecting its ability to sustain profitability while investing in growth.

The corporation’s TAVR segment saw a 6% increase in global sales, reaching $1 billion, with the U.S. market performing consistently and Europe benefiting from the launch of the SAPIEN 3 Ultra RESILIA valve. Meanwhile, TMTT sales surged 74% year-over-year to $91 million which was driven by strong adoption of the PASCAL repair system and the EVOQUE tricuspid replacement system. Full-year guidance for TMTT remains at the higher end of $320 million to $340 million. In the surgical segment, revenue rose 5% to $240 million which was supported by innovative technologies such as INSPIRIS, MITRIS, and KONECT.

The company’s strategic acquisitions, including JC Medical, JenaValve, and Endotronix, have expanded its presence in new therapeutic areas and bolstered its leadership in structural heart disease. Regulatory milestones, such as the CE mark approval for the Alterra system for congenital heart patients and U.S. approval of the 56mm EVOQUE valve, further enhance the company’s growth trajectory.

As of Q3 2024, 55 hedge funds held shares in the company as tracked by the Insider Monkey database. The largest shareholder was Fisher Asset Management with stakes worth $599 million.