Glaukos Corporation GKOS is well-poised for growth on the back of favorable clinical trial results and a robust product pipeline. However, stiff competition is a concern.

Shares of this Zacks Rank #2 (Buy) company have risen 71.6% year to date compared with the industry’s 6.4% growth. The S&P 500 Index has also increased 27.3% in the same time frame.

Glaukos, with a market capitalization of $7.65 billion, is a leading ophthalmic medical technology and pharmaceutical company. It projects earnings growth of 16.3% for 2024, followed by a 44.4% improvement in 2025. It expects to maintain its strong revenue performance, growing 26.3% in 2025.

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The company has a trailing four-quarter average earnings surprise of 3.24%.

Key Catalysts

Strong Product Demand: The increase in Glaukos' share price can be attributed to the success of its leading product, iStent. The company showed strong performance in the first nine months of 2024 and has a positive business outlook, boosting investors’ confidence in the stock. The strong demand for Glaukos' international glaucoma and Corneal Health products further drives investors’ optimism.

On its third-quarter earnings call, Glaukos emphasized the growing use of iStent infinite for glaucoma patients, especially those who have not responded to other treatments. This growth is driven by ongoing clinical education and better market access. Additionally, five out of seven Medicare Administrative Contractors have issued draft local coverage determinations for iStent infinite. This is expected to improve patient access.

Glaukos’ revenues have surpassed estimates so far in 2024 due to high demand for its products. Consequently, the company raised its full-year revenue guidance to $377-$379 million from $370-$376 million, contributing to the rise in its share price.

Expanding Product Portfolio: The iStent portfolio significantly boosted Glaukos' glaucoma franchise revenues in the first nine months of 2024. Additionally, the launch of iDose TR in the second quarter is already enhancing revenue growth, beginning in the third quarter. With a permanent J-code for iDose TR effective from July 1, patient access is likely to increase, driving future sales.

Glaukos continues to invest in its product pipeline, including its corneal cross-linking therapy, Epioxa, which is expected to undergo NDA submission by the end of 2024. Epioxa is advancing through its second Phase 3 pivotal trial. The company is also preparing for a pivotal study on its next-generation iDose therapy, iDose TREX, which is set to begin soon. These initiatives are poised to drive long-term growth.

Internationally, Glaukos is focused on expanding its footprint. The company sells its products through subsidiaries in 17 countries and independent distributors in other markets. Glaukos' international glaucoma franchise reported record sales of $83.5 million in the first nine months of 2024, reflecting 17% year-over-year growth. This global expansion is expected to continue to support the company's long-term growth trajectory.

What’s Hurting GKOS?

The company currently depends on a limited number of third-party suppliers, including some sole suppliers, for components of the iStent, iStent inject models and other pipeline products. If any of these suppliers fail to provide sufficient quantities of components or drugs in a timely manner or on acceptable terms, Glaukos would need to seek alternative sources.

The production of the iStent, iStent inject models, and other products in development relies on a select group of third-party suppliers, sometimes exclusively. If these suppliers do not deliver the necessary components or drugs promptly or on acceptable terms, Glaukos would have to find other suppliers to maintain its production line.

Glaukos Corporation Price

Glaukos Corporation price | Glaukos Corporation Quote

Estimate Trend

The bottom-line estimate for GKOS is pegged at a loss of $1.90 per share for 2024, which narrowed 30 cents in the past 60 days. The Zacks Consensus Estimate for 2024 revenues is pinned at $378.7 million, indicating growth of 20.3% from the top line recorded in 2023.

Other Stocks to Consider

Some other top-ranked stocks in the broader medical space are Masimo MASI, Accuray ARAY and AxoGen AXGN.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 48.6% compared with the industry’s 6.4% growth year to date.

Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.

ARAY’s shares have lost 25.8% against the industry’s 6.4% growth year to date.

AxoGen, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 252% for 2025. It delivered a trailing four-quarter average earnings surprise of 91.11%.

AXGN’s shares have risen 111.4% year to date compared with the industry’s 6.4% growth

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