Reasons to Hold AngioDynamics Stock in Your Portfolio for Now

AngioDynamics ANGO has been gaining from its solid prospects with NanoKnife and an increased focus on cancer treatment markets. The optimism, led by a solid third-quarter fiscal 2026 performance, positive ongoing studies and a broad product line, bodes well for the stock. In the year-to-date period, the Zacks Rank #3 (Hold) company’s shares have lost 3.5% compared with 18.2% decline of the industry. The S&P 500 has also increased 9.6% during the said time frame.The renowned designer, manufacturer and seller of an extensive range of innovative medical, surgical and diagnostic devices has a market capitalization of $502 million. The company projects 57.9% growth over the next year and expects to witness continued improvements in its business. AngioDynamics’ earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 60.5%.Reasons Favoring ANGO’s GrowthNanoKnife Driving Growth: During the third quarter of fiscal 2026, NanoKnife delivered strong growth as revenues increased 21% year over year to $7.6 million, driven by rising demand for both disposables and capital systems. Probe revenues climbed 20% on continued adoption in prostate cancer procedures, while capital sales rose 24.9% due to growing uptake among new physicians and healthcare providers.Management noted that increasing physician confidence, expanding training programs and improving procedural familiarity are driving higher patient volumes each month. NanoKnife is also benefiting from favorable reimbursement trends following the Jan. 1, 2026, implementation of its CPT Category I code for prostate procedures, with early reimbursement experience proving encouraging. Combined with positive real-world outcomes consistent with the PRESERVE study, these factors continue to support sustained procedural growth and strengthen NanoKnife’s long-term recurring revenue potential.Broad Product Line: AngioDynamics delivered another quarter of strong Med Tech momentum in the third quarter of fiscal 2026, led by continued strength in the Auryon platform and Mechanical Thrombectomy franchise. Auryon revenues increased 17.9% year over year to $16.3 million, marking the 19th consecutive quarter of double-digit growth, driven by expanding hospital penetration, improving utilization trends and ongoing product enhancements. Management also highlighted growing international traction following CE Mark approval and reiterated confidence in the platform’s long-term growth opportunity despite its larger revenue base.The Mechanical Thrombectomy business remained another key growth driver, with combined AngioVac and AlphaVac revenues rising 17.9% year over year to $11.5 million. AlphaVac revenues surged 47.4% year over year on strong physician adoption, rising utilization within existing accounts and expanding hospital approvals, while AngioVac returned to growth with a 5% revenue increase. Management expects continued sequential growth for AlphaVac, supported by increasing market penetration, favorable clinical outcomes and the ongoing APEX-Return pivotal trial, which could further support future adoption.Solid Q3 Results: AngioDynamics exited the third quarter of fiscal 2026 with narrower-than-expected adjusted loss per share and better-than-expected revenues. The uptick in overall revenues and geographical revenues, both on a reported and pro forma basis, looked promising. The robust performance of both segments was also impressive. Robust Auryon, AngioVac, AlphaVac and NanoKnife sales were also recorded during the quarter.Per management, ANGO’s mechanical thrombectomy portfolio exhibited strong performance during the quarter as commercial adoption continued to build with both AlphaVac and AngioVac.Image Source: Zacks Investment ResearchA Factor That May Offset ANGO’s GainsMacroeconomic Concerns: AngioDynamics continues to face headwinds from tariffs, inflation and broader macroeconomic uncertainty. During the fiscal third quarter of 2026 earnings call, management stated that tariff expense totaled approximately $1.3 million in the quarter and reiterated expectations for $4-$6 million in tariff-related costs for fiscal 2026. Rising supplier, energy and manufacturing-related costs also remain ongoing pressures on the business.These factors weighed on profitability, with gross margin declining 110 basis points year over year to 52.9% in the quarter due to tariffs, inflation and manufacturing transition costs. While a favorable Med Tech mix shift and selective pricing actions partially offset the impact, management acknowledged that pricing has not fully compensated for rising external costs. Additionally, planned inventory build-ups tied to temporary sterilization shutdowns are expected to increase near-term cash usage, adding further operational pressure.Estimate TrendAngioDynamics has been witnessing a stable estimate revision trend for fiscal 2026. Over the past 30 days, the Zacks Consensus Estimate for loss has remained stable at 19 cents per share.The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is pegged at $80.5 million, implying a 0.4% rise from the year-ago reported number. The consensus mark for fiscal fourth-quarter loss per share is pinned at 11 cents, implying a 266.7% decline year over year.Key PicksSome better-ranked stocks from the broader medical space are Globus Medical GMED, West Pharmaceutical WST and Intuitive Surgical ISRG.Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.West Pharmaceutical, currently flaunting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks