Medical Devices Leader Merit Medical Systems Pumps Up Buy Point With 3 New Innovations

With a 94 Composite Rating, Merit Medical Systems (MMSI) leads the medical products industry group. A string of recent innovations in its portfolio of biopsy and cardiac devices has the stock setting up a new breakout.

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Joining industry peers Dexcom (DXCM) and Meridian Bioscience (VIVO), Merit Medical Systems made the latest list of new buys by the best mutual funds. (In July, Meridian agreed to be acquired by SD Biosensor and SJL Partners for $1.53 billion in an all-cash deal.)

Further pointing to institutional demand for Merit Medical, the medical devices leader earns an “A-” Accumulation/Distribution Rating. Plus, 29 funds with an “A+” or “A” rating have reported a position in MMSI stock.

Medical Devices Leader Launches 3 New Innovations

Headquartered in Utah, Merit Medical Systems is a global manufacturer and marketer of proprietary disposable medical devices. It focuses on articles and instruments used in interventional, diagnostic and therapeutic procedures, particularly in cardiology, radiology, oncology, critical care and endoscopy.

The company employees roughly 6,300 people. It serves client hospitals worldwide, with a domestic and international sales force and clinical support team of over 500 people.

In addition to the U.S. and Canada, the medical devices firm has facilities on every continent except Antarctica, including operations in the Netherlands, France, Ireland, China, Mexico and Brazil.

Merit has launched three new additions to its medical devices portfolio in recent months.

In August, it debuted the SafeGuard Focus Cool Compression Device, an addition to its SafeGuard platform. In early September, it announced the U.S. commercial release of the Prelude Roadster Guide Sheath, the newest addition to the Merit Vascular-Peripheral Access portfolio. Finally, later that month, it launched the TEMNO Elite Soft Tissue Biopsy System.

Earnings growth has been sporadic recently but Merit has posted two quarters of rising EPS gains, including a 23% jump in the third quarter. Revenue rose 8% year over year at the same time.

Over the last three years, the company has posted average earnings growth of 25%.

Merit Medical Systems Probes Buy Point

Since September of last year, Merit Medical Systems has encountered long-term resistance multiple times.

It jumped higher after reporting Q3 numbers in October but hit resistance near that barrier once again. Since reporting, hesitancy in the stock has mirrored volatility and uncertainty in the market indexes.

Merit Medical Systems has now formed a handle, offering a 71.70 buy point. The stock ended the week 2% shy of that entry.

To confirm conviction for a fresh climb, look for volume on this medical devices leader to come in at least 40% above average on any attempted breakout.

Follow Matthew Galgani on Twitter at @IBD_MGalgani.

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