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 fourth-quarter fiscal 2025 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 gained 16.3% against the 11.5% decline of the industry. The S&P 500 has increased 14.4% 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 $437.6 million. The company projects 43.3% 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 72.58%.

Reasons Favoring ANGO’s Growth

NanoKnife Driving Growth: NanoKnife remains a key product in AngioDynamics’ portfolio, supported by FDA clearance and a Breakthrough Device Designation. Total NanoKnife revenues reached $24.5 million in fiscal 2025, essentially flat from the prior year, with fiscal fourth-quarter revenues of $7.2 million reflecting softer capital placements but solid growth in disposables. Management noted that recurring disposable sales, which grew 9.6% for the year, continue to provide a reliable revenue stream and help offset variability in system placements.

Looking ahead, reimbursement milestones are expected to unlock greater potential, with prostate procedures gaining a CPT Category I code in early 2026 and pancreatic procedures following in 2027. Supported by a growing installed base and increasing surgeon adoption, NanoKnife is positioned as a differentiated growth driver capable of contributing sustainably and profitably to AngioDynamics’ Med Tech business.

Clinical Progress and Balanced Portfolio Support Growth: AngioDynamics is advancing a broad pipeline of clinical studies while leveraging its diversified product portfolio to reinforce investor confidence. Key trials include the AMBITION below-the-knee study for Auryon, designed to expand adoption in Europe following CE Mark, and the RECOVER-AV trial for AlphaVac in Poland, aimed at supporting its global thrombectomy positioning. NanoKnife achieved a pivotal milestone with the PRESERVE prostate trial, meeting its primary endpoints and creating potential reimbursement catalysts from 2026. Additional studies, such as APEX-AV and AMBITION BTK, highlight management’s focus on building robust clinical validation across its Med Tech platforms.

Alongside its innovation pipeline, AngioDynamics benefits from a balanced portfolio that combines high-growth Med Tech launches with resilient Med Device products. Auryon posted its 16th straight quarter of double-digit growth, AlphaVac showed solid traction with next-gen enhancements under FDA review and AngioVac continued steady adoption. Meanwhile, established offerings like Core Peripheral, EVLT, Ports, and Solero Microwave added stability and recurring revenue, helping offset newer product volatility. Together, these factors support sustainable growth and long-term shareholder value.

Decent Q4 Results: AngioDynamics wrapped up the fourth quarter of fiscal 2025 with solid progress, posting a smaller-than-anticipated adjusted loss per share and revenue that exceeded estimates, reflecting strong execution. Growth was well-rounded, with overall and regional sales advancing on both a reported and constant currency basis. Strength across both operating segments further highlighted the company’s underlying resilience.

A Factor That May Offset ANGO’s Gains

Tariffs Weigh on Margins: AngioDynamics highlighted that tariffs remain a notable drag on profitability, with Med Tech and Med Device margins several points higher when adjusted for these costs. In the fourth quarter of fiscal 2025, Med Tech margins were 59% including tariffs, versus 62.1% excluding them, while Med Device margins were 47.6% versus 48.8% on the same basis.

Management noted that tariff-related expenses are fully embedded in fiscal 2026 guidance, with gross margin projected in the range of 53.5% to 55.5% (or 55.0% to 56.0% excluding tariffs) and adjusted EBITDA in the range of $3.0 million to $8.0 million (or $7.5 million to $10.5 million excluding tariffs). Even so, leadership emphasized that strong commercial execution and efficiency initiatives are helping to cushion the impact and protect long-term growth investments.

Estimate Trend

AngioDynamics has been witnessing a negative estimate revision trend for fiscal 2026. Over the past 60 days, the Zacks Consensus Estimate for loss has expanded 2 cents to 30 cents per share.

The Zacks Consensus Estimate for first-quarter fiscal 2026 revenues is pegged at $72.3 million, implying a 7.1% rise from the year-ago reported number. The consensus mark for fiscal first-quarter loss per share is pinned at 14 cents, implying a 27.3% decline year over year.

Key Picks

Some better-ranked stocks in the broader medical space are West Pharmaceutical Services, Inc. WST, Medpace Holdings, Inc. MEDP and Envista NVST.

West Pharmaceutical reported second-quarter 2025 adjusted earnings per share (EPS) of $1.84, which beat the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the consensus estimate by 5.4%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Medpace Holdings, sporting a Zacks Rank of 1, reported second-quarter 2025 EPS of $3.10, which beat the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%.

Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.

Envista reported second-quarter 2025 adjusted EPS of 26 cents, which beat the Zacks Consensus Estimate by 8.3%. Revenues of $682 million surpassed the Zacks Consensus Estimate by 6.3%. It currently carries a Zacks Rank #2 (Buy).

Envista has a long-term estimated growth rate of 16.8%. NVST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.50%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research