Abiomed is on track to become a top gainer in S&P 500

Dec. 29, 2020 1:51 PM ETAbiomed, Inc. (ABMD)SPY, IBB, IHIBy: Dulan Lokuwithana, SA News Editor11 Comments
  • As the year closes out, Abiomed (NASDAQ:ABMD) is leading the S&P 500 constituents to become the highest gainer for 2020. With the 2.6% added today, the total return for the year is reaching 83.4% YTD, well outperforming the 17.8% gain in the SPDR S&P 500 Trust ETF (SPY). The share performance is notable given the 47.5% loss suffered last year as the SPY rose 31.2%
  • While the pandemic headwinds drove its TTM revenue to fall 2.1% from the previous year, Abiomed’s gain eclipsed the industry with the iShares U.S. Medical Devices ETF (IHI) rising only 22.6% and even the iShares Nasdaq Biotechnology ETF (IBB) making a gain of only 27.8%.
  • The company reached notable milestones in 2020, including the 510(k) clearance received in October for Abiomed Breethe OXY-1 System. Last week, the company announced that the all-in-one, compact cardiopulmonary bypass system was used to treat the first two patients.
  • Just over a year after FDA approval for Impella 5.5 with SmartAssist heart pump, touted as the world’s smallest, the company announced in November that the number of patients treated reached 1,000.
  • However, the valuation has also followed good news in earnest with forward P/E multiple standing at 85.0x, more than double the five-year average of 36.4x (below).
  • The stock saw a number of bullish calls from Seeking Alpha authors through 2002, the most recent coming just before November.

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