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Zynex: Order Growth, Already At +140%, Is Set To Accelerate

May 05, 2021 8:53 AM ETZynex, Inc. (ZYXI)8 Comments


  • Order growth, and with it revenue growth, will accelerate again after already raking up a 140% growth in Q1.
  • Salesforce productivity has a lot of upside; with hiring slowing down and even halting in H1 2020, profitability will recover.
  • Lowering inventories and other cost and a $10M buyback program are additional positives.
  • New devices are getting ready to sell as well, although it remains to be seen how fast they can ramp.
  • Stock valuation has come down significantly, and the shares can be bought under $15 with a favorable risk/reward situation.
  • Looking for a portfolio of ideas like this one? Members of SHU Growth Portfolio get exclusive access to our model portfolio. Learn More »
TENS, Transcutaneous Electrical Nerve Stimulation in Physical Therapy.
Photo by mladenbalinovac/E+ via Getty Images

Zynex (NASDAQ:ZYXI) is one of a few troubled shares in our SHU Growth Portfolio but we fully expect this to turn around. At first sight, this is really quite curious, given the order growth in the just-published Q1 figures of a

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This article was written by

Shareholders Unite profile picture

Shareholders Unite is a retired academic with 30+ years of experience in the financial markets. He looks to find small companies with multi-bagger potential while mitigating risks through a portfolio approach.

He runs SHU Growth Portfolio where he offers wide coverage of several small companies with high growth possibilities. He has a buy and hold approach with tranche purchases of stocks of interest. The service features an illustrative portfolio to incorporate into your portfolio, buy alerts, weekend stock and market updates, and a chat room. Learn more

Analyst’s Disclosure: I am/we are long ZYXI. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (8)

Hi any comment on United Healthcare dropping zynex from network? Thoughts?
Who is the girl on the picture?
Zach Bristow profile picture
@shareholdersunite - nice analysis, we are beginning to converge in our theses for the ZYXI investment debate. How much do you believe the 140% sales growth occurred on the back of a difficult comps period last year in that we were well into Covid/pandemic in Q1 last year? Do you feel this will skew organic growth figures moving forwards? Interested in your thoughts here. I’m still cautious on their inventory/sales force situation until we see the sales execution convert at the top and bottom, especially on a per rep basis. But these coming quarters are pivotal in solidifying the long-term thesis here. Thanks again for this report
Shareholders Unite profile picture
@Zach Bristow Hello Zach, thanks. Yes, of course the order growth numbers are boosted by easy comps, but they were growing last year as well and are set to accelerate pretty dramatically over the next couple of quarters, so there is quite a bit of margin on that front. In the end, what matters more is productivity, which should increase substantially as well if these growth numbers pan out and on the paused hiring, but we have to see.
Zach Bristow profile picture
@Shareholders Unite thanks for that. All the best with this one
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