Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of NuVasive
So what: It's been a delayed reaction, but Canaccord life sciences analyst William Plovanic referred to NuVasive as the "best asset in its class." He noted that there have been products which haven't performed as well as once anticipated and that legal issues still exist for the company. In fact, a hearing is scheduled for tomorrow whereby Medtronic
Now what: This is as good a time as any to be reminded that analyst upgrades and downgrades are largely one-day to one-week events and don't have much bearing on the long-term outlook of a stock. NuVasive is in one of my favorite fields -- medical devices -- and its sales are increasing nicely. Unfortunately, Wall Street estimates show that legal woes and the lag time related to introducing new products is going to stymie EPS growth for at least the next year or two. Following today's huge rally, I'm more than content to pass on NuVasive here and perhaps re-evaluate it on a dip.
Craving more input? Start by adding NuVasive to your free and personalized watchlist so you can keep up with the latest news from the company.