AngioDynamics: Fine tuning your cure

Minimally invasive surgical methods avoid open surgery, in favor of closed procedures with less trauma. A leading provider of systems the remove tumors and clear blood vessels without open surgery is headquartered in Queensbury, New York.

AngioDynamics (NASDAQ: ANGO) provides medical devices used by interventional radiologists and surgeons for the minimally invasive treatment of cancer and peripheral vascular disease. The firm's oncology product line includes image-guided radiofrequency ablation devices, used to kill cancer cells by heating and destroying them. Its peripheral vascular line includes a variety of instruments for clearing and draining non-cardiac arteries. The company's products are sold in more than 30 countries. Competitors include Johnson & Johnson (NYSE: JNJ) and Boston Scientific (NYSE: BSX).

The firm pleased investors last week, when it offered Q4 revenue guidance of $40.5-$40.8 million. That range encompassed the average Street estimate of $40.65 million. The CEO pointed out that the company had resumed active participation in the laser vein ablation market and had received positive initial reaction to its new and improved product. The stock popped through 30-day and 50-day moving average resistance on the news and then began definition of a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the issue with three "strong buys," two "buys" and three "holds." Analysts expect a 32% growth rate through the next year. The ANGO Price to Sales ratio (4.26), Price to Book ratio (1.22) and Sales Growth rate (35.14%) compare favorably with industry and sector averages. About 84% of the outstanding shares are held by institutional investors. Over the past fifty-two weeks, the stock has traded between $15.20 and $28.83. A stop-loss of $14.60 looks good here. Note that the firm is expected to report Q4 results in late July.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.