We recently compiled a list of the 10 Best Rebound Stocks To Invest In Now. In this article, we are going to take a look at where Establishment Labs Holdings Inc. (NASDAQ:ESTA) stands against the other rebound stocks.
The United States economy is in a constant state of flux. In recent weeks, moderated growth, evolving monetary policies, and significant trade developments have impacted the overall outlook for the economy. The Organisation for Economic Co-operation and Development (OECD) anticipates a deceleration in US economic growth, projecting a decrease from 2.6% in 2024 to 1.6% in 2025. This slowdown is expected to be mitigated by monetary policy easing, with policy interest rates projected to decline by an additional 1.5 percentage points by the end of 2025, aligning rates toward neutral levels. Contrastingly, Goldman Sachs offers a more optimistic outlook, forecasting a 2.5% growth in US GDP for 2025, surpassing the consensus estimate of 1.9%. Chief US Economist David Mericle emphasizes the diminishing recession fears, noting that inflation is trending back toward 2%, and the labor market has rebalanced but remains strong. However, potential policy changes, including increased tariffs and reduced immigration, could influence this trajectory.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Recent trade policies have introduced uncertainties into the economic landscape. President Trump’s announcement of 25% tariffs on imports from Mexico and Canada, and 10% on Chinese imports, has led to swift retaliatory measures and heightened fears of a global trade war. Major stock indices, including Germany’s DAX, France’s CAC, and the UK’s FTSE 100, experienced declines. In the US, the Dow Jones, S&P 500, and Nasdaq futures indicated drops as well. Analysts express concerns that these tariffs could increase consumer prices, affect corporate profits, and potentially lead to recessions in both Mexico and Canada. Financial institutions such as JPMorgan, Deutsche Bank, and Goldman Sachs are revising their economic forecasts, considering potential court injunctions against the tariffs, and evaluating broader economic impacts, including inflation hikes and growth decreases.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
To make our list of the best rebound stocks to invest in now, we ranked the most valuable stocks with a market cap greater than $300 million that are down 30% or more year-to-date. Out of these, we picked the top ten stocks with the highest number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a silicone gel-filled breast implant with a Motiva logo in the background.
Establishment Labs Holdings Inc. (NASDAQ:ESTA)
Number of Hedge Fund Holders: 24
Year-To-Date Decline in Share Price: 33.2%
Establishment Labs Holdings Inc. (NASDAQ:ESTA) is a medical technology company that manufactures and markets medical devices for aesthetic and reconstructive plastic surgery. In November last year, the company reported its financial results for the third quarter of 2024. It achieved total revenue of $40.2 million, a 4.5% increase from $38.5 million in the same period of 2023. Gross profit was $25.7 million, representing 63.9% of revenue, compared to $26.1 million, or 67.7% of revenue, in the third quarter of 2023. The decline in gross margin was primarily due to geographic sales mix and unfavorable foreign currency exchange rates. Total operating expenses decreased by $8.2 million to $38.9 million, down from $47.1 million in the same quarter of the previous year.
Overall ESTA ranks 4th on our list of the best rebound stocks to invest in. While we acknowledge the potential of ESTA as an investment, our conviction lies in the belief that some stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a stock that is more promising than ESTA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
