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Here's Why You Should Hold On to Inogen (INGN) Stock for Now

Zacks Equity Research
·3 min read

Inogen, Inc. INGN is likely to gain from a solid product portfolio and a strong revenue guidance. However, the company is currently facing global headwinds.

 

Shares of the company have lost 44.9% compared with the industry's 20.8% decline in a year’s time. The current level also compares unfavorably with the S&P 500 index’s 30.2% decline over the same time frame.

 

 

This $1.07-billion medical technology company currently has a Zacks Rank #3 (Hold). Inogen’s earnings are expected to grow 11.1% in the next five years. However, the company has a trailing four-quarter positive earnings surprise of 7.2%, on average.

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Let’s take a closer look at the factors working in favor of the company right now.

 

Product Portfolio & Guidance

 

Inogen’s expanding product portfolio is a key catalyst. The company provides oxygen concentrator solutions for portable and stationary use. Inogen’s flagship product, One G4, is a single-solution portable oxygen concentrator. Recently, the company launched the Inogen One G5 in the domestic business-to-business arm. In fact, the company applied for CE marking for the same and has begun shipments to international customers.

Inogen, Inc Price and Consensus

Inogen, Inc Price and Consensus
Inogen, Inc Price and Consensus

Inogen, Inc price-consensus-chart | Inogen, Inc Quote

Management also confirmed plans of incorporating the Tidal Assist Ventilator directly into the Inogen One Portable Oxygen Concentrators and making the SideKick TAV product compatible with the Inogen At-Home Stationary Concentrator.

 

Furthermore, despite a recent decline in revenues, Inogen has kept its revenue guidance intact.

 

For 2020, Inogen continues to expect revenues of $385-$400 million, calling for 6.4-10.5% year-over-year growth, with modest growth in rental revenues for 2020 compared with that in 2019.

 

Deterrents

 

Inogen has been facing global headwinds of late. The company’s international business-to-business revenues fell 7.7% year over year and 5.1% at constant currency in recent times, primarily due to tender uncertainty in certain European regions and currency headwinds.

 

Resultantly, the company now expects to report a loss per share for the first quarter of 2020. Additionally, Inogen expects 2020 EBITDA of $44-$50 million, down from the earlier projected $56-$58 million.

 

Estimates Picture

 

For 2020, the Zacks Consensus Estimate for revenues is pegged at $83.35 million. For adjusted earnings per share, the same stands at a loss of 10 cents.

 

Key Picks

 

Some better-ranked companies in the broader medical sector include Stryker Corporation SYK, Accuray Incorporated ARAY and The Cooper Companies COO, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Stryker’s long-term earnings growth is expected at 10.1%.

 

Accuray’s fiscal fourth-quarter earnings are expected to skyrocket 150%.

 

Cooper Companies' long-term earnings growth is projected at 10.7%.

 

More Stock News: This Is Bigger than the iPhone!

 

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

 

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

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Stryker Corporation (SYK) : Free Stock Analysis Report
 
Accuray Incorporated (ARAY) : Free Stock Analysis Report
 
The Cooper Companies, Inc. (COO) : Free Stock Analysis Report
 
Inogen, Inc (INGN) : Free Stock Analysis Report
 
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Zacks Investment Research