Small-cap stock #5: Thoratec (THOR)

Posted May 17th 2009 2:00PM by Louis Navellier
Filed under: Stocks to Buy, Best Stocks for 2009

Small-cap stock #5: Thoratec (THOR) Thoratec (NASDAQ: THOR), known for its ventricular assist devices (VADs) for patients suffering late-stage heart failure, recently bought Australia's HeartWare. Investors responded positively to this move because it brings new technology to Thoratec and expands the company's already significant market share.

THOR currently has 85% of the U.S. heart pump market and 65% of Europe's, and this new technology could ensure THOR stays on the top of this market for at least the next five to 10 years. The Thoratec-HeartWare partnership has the potential to grow into a multibillion-dollar business, which will translate to big sales and earnings growth.

After reporting earnings last week, the company said that strong sales at its cardiovascular division drove revenue up 39% over last year to $89.6 million, and earnings rose to $5.6 million or 22 cents per share, compared with a net loss of $678,000 or one cent per share in the first quarter of 2008. Analysts were expecting earnings of 16 cents per share on revenue of $82.9 million, so Thoratec posted a 37.5% earnings surprise and a 7.5% sales surprise. Thoratec has great fundamentals and is a phenomenal buy.

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Tags: Louis Navellier, small cap stocks, stocks to buy, THOR, Thoratec