6. Edwards Lifesciences Corporation (NYSE:EW)
Number of Hedge Fund Holders as of Q4: 67
Citadel Investment Group’s Equity Stake: $697.22 Million
Headquartered in Irvine, California, Edwards Lifesciences Corporation (NYSE:EW) reported its financial results for Q4 and the full year ending December 31, 2024, highlighting strong performance across its product portfolio. The company achieved revenue of $1.39 billion, surpassing expectations by $30 million and reflecting a 9% year-over-year increase. Earnings per share (EPS) for the quarter stood at $0.59, compared to the projected $0.95. Additionally, the company maintained a solid gross profit margin of 79% and a strong liquidity position, holding $3 billion in cash and cash equivalents.
CEO Bernard Zovighian emphasized the company’s progress in advancing structural heart innovations, citing key growth drivers such as transcatheter aortic valve replacement (TAVR), mitral and tricuspid therapies, and emerging opportunities in structural heart failure and aortic regurgitation. Following the earnings announcement, Edwards Lifesciences Corporation (NYSE:EW)’s stock surged by 5.77% in after-hours trading, closing at $75. Analysts consider the stock undervalued, given its low price-to-earnings (P/E) ratio of 10.22 and an exceptionally low price/earnings-to-growth (PEG) ratio of 0.14, indicating strong investor confidence in future growth.
Edwards Lifesciences Corporation (NYSE:EW) reaffirmed its financial guidance for 2025, expecting Q1 sales between $1.35 billion and $1.43 billion, with adjusted EPS ranging from $0.58 to $0.64. For the full year, the company projects total revenue between $5.6 billion and $6.0 billion, representing an anticipated 8-10% growth. The company remains committed to global expansion and sustained investment in research and development, positioning itself for continued success in the structural heart market.
By the end of Q4 2024, Citadel Investment Group significantly expanded its stake in Edwards Lifesciences Corporation (NYSE:EW), increasing its holdings to approximately 9.42 million shares—a sharp rise from approximately 2 million shares in Q3, representing a 373% surge. This boosted the fund’s total investment in the company to nearly $697.22 million, making it sixth in the list of the top stocks to buy according to Citadel Investment Group.
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 do not exhibit symptoms which is 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.”
