Penumbra and Mesa Labs have been highlighted as Zacks Bull and Bear of the Day

Penumbra and Mesa Labs have been highlighted as Zacks Bull and Bear of the Day

Zacks Equity Research
11 min read
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For Immediate Release

Chicago, IL – September 22, 2023 – Zacks Equity Research shares Penumbra PEN as the Bull of the Day and Mesa Labs MLAB asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on American Eagle Outfitters, Inc. AEO, Sprouts Farmers Market, Inc. SFM and BJ's Restaurants, Inc. BJRI.

Here is a synopsis of all five stocks:

Bull of the Day:

Penumbra is the $10 billion innovator of neurovascular treatments for stroke using catheter aspiration technologies.

After a solid beat-and-raise Q2 reported in early August, upward estimate revisions by six Wall Street analysts moved PEN to a Zacks #1 Rank. And Wells Fargo raised their PT from $320 to $337.

PEN is on its way to a 980% EPS growth surge this year, topped off by a 25% jump in the topline to cross $1 billion.

Shares Tank After Earnings

But the stock suffered a perplexing drop of over 15% and Truist analysts, who lowered their PT from $370 to $345, identified the culprit right away on the evening of the August 1 report...

"PEN shares are likely to see pressure largely due to a 12-month Thunderbolt approval/launch delay (now expected late '24/'25)."

The Truist team also noted the "4Q-weighted 2H guide" as a possible selling catalyst. But overall, they think PEN is a name towards which investors will continue to gravitate to on pullbacks, especially with estimates increasing.

They believe the profit outlook is at an inflection point, and a "multi-year new product cycle story is still very much intact."

The PEN Is Mightier Than the Scalpel 

For years I've profiled Penumbra for its remarkable technology that was launched in 2007. The company takes its name from the dark shadow that is created in brain tissue when a person has a stroke.

Their mission is to provide physicians with efficient emergency tools to remove the blood clot and save as much neurological function as possible.

The Penumbra story was of particular interest to me since my father was a commercial airline pilot who had a mild heart attack in 1980. He was lucky to be selected for the newish angioplasty procedure to widen a partially blocked artery.

Catheter technologies for cardiovascular issues were still experimental in the late 1970s.

But we were thankful he didn't need to have open heart surgery, which would have been certainly scary and definitely ended his flying career.

Not only was the angioplasty successful, it made him the first pilot to have the procedure and return to full aviation capabilities. He went on to perform another 20 years of duty as a United captain of 747s and 767s flying to Japan and Germany.

You can learn more about my hero, who flew to that great hangar in the sky in 2021, here...

Flight Plan for Trading: Market Lessons from My Pilot Dad

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