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RTI Surgical at a 52-Week High: What's Driving the Stock?

Share price of RTI Surgical, Inc. RTIX, based in Alachua, FL, scaled a new 52-week high of $6.00 on Jul 10, eventually closing a bit lower at $5.65. The company has witnessed a consistent rally in its share price, gaining around 39.5% since the announcement of impressive revenue performance in the first quarter of 2017.

Average volume of shares traded over the last one year was remarkable at approximately 268.5K. The stock has a market cap of $330.9 million.

Comparison with Broader Industry

For the majority of the last three months, the company’s share price has considerably outperformed the Zacks categorized Medical - Instruments sub-industry. The stock has rallied 44.9% over this period, outshining the sub-industry’s rise of 10.9%. The company has also outperformed the S&P 3.6% gain.

Taking the stable stock performance into consideration, we expect RTI Surgical to scale higher in the coming quarters.

Positive Surprise

This Zacks Rank #3 (Hold) company delivered a stellar four-quarter positive average earnings surprise of 25.00%.

Growth Catalysts

Investors are upbeat about the company’s recent announcement that it is now part of a U.S. public-private Manufacturing initiative, the Advanced Regenerative Manufacturing Institute (ARMI).ARMI will work under the umbrella of Manufacturing USA, a public-private network that invests in the development of advanced manufacturing technologies.

Also, we are encouraged to note that the company is focused on reducing cost by proper allocation of resources. The company has planned to invest more resources in profitable areas and less in the areas with lower growth potential. On the other hand the company is increasingly focusing on R&D investments.

RTI Surgical, Inc. Price and Consensus

 

RTI Surgical, Inc. Price and Consensus | RTI Surgical, Inc. Quote

Further, over the past one year, RTI Surgical has been gaining prominence on the back of the recent string of regulatory approvals. An advanced bone graft substitute of the company, nanOss Bioactive bone void filler, got approved by the Australian Therapeutic Goods Administration. The company has also announced CE Mark approval for nanOss Bioactive Loaded bone void filler and nanOss Bioactive 3D bone void filler in Europe.

The company’s impressive revenue performance in the first quarter of 2017, both in the domestic and international market, has also bolstered investors’ confidence in the stock.

Key Picks

A few better-ranked medical stocks are Mesa Laboratories, Inc. MLAB, Edwards Lifesciences Corporation EW and Align Technology, Inc. ALGN. Notably, Mesa Laboratories and Edwards Lifesciences sport a Zacks Rank #1 (Strong Buy), while Align Technology carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Mesa Laboratories has a positive earnings surprise of 2.84% over the last four trailing quarters. The stock has added roughly 11.6% over the last three months.

Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. The stock has gained around 25.4% over the last three months.

Align Technology has an expected long-term adjusted earnings growth of almost 24.1%. The stock has added roughly 32.8% over the last three months.

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Mesa Laboratories, Inc. (MLAB): Free Stock Analysis Report
 
RTI Surgical, Inc. (RTIX): Free Stock Analysis Report
 
Edwards Lifesciences Corporation (EW): Free Stock Analysis Report
 
Align Technology, Inc. (ALGN): Free Stock Analysis Report
 
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