Should You Continue to Hold EW Stock in Your Portfolio?

Edwards Lifesciences Corporation EW is well-poised to grow in the coming quarters owing to its Surgical Structural Heart, which pioneered the RESILIA tissue. The company’s Transcatheter Aortic Valve Replacement (“TAVR”) platform is positioned for continued global leadership and strong, sustainable growth. Further, the Transcatheter Mitral and Tricuspid Therapies (“TMTT”) business has seen consistent growth over the past few quarters, with Edwards efficiently scaling its fast-growing businesses. Meanwhile, macroeconomic impacts and litigation expenses may hurt its operations.

In the past year, this Zacks Rank #3 (Hold) stock has rallied 13.4% against the 2.1% fall of the industry. The S&P 500 composite has risen 15.2% in the same time frame. 

The renowned global medical device company has a market capitalization of $48.33 billion. Edward Lifesciences’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 8.89%.

Let’s delve deeper.

Upsides for EW Stock

Surgical Structural Heart, a Promising Business: The business pioneered the innovative RESILIA tissue, which is backed by more than 40 years of the company’s tissue technology leadership. In the third quarter of 2025, the segment grew 5.3% from the prior-year level, driven by strong global adoption of Edwards’ premium resilient technologies, including INSPIRIS, MITRIS and KONECT. The company continues to see positive procedure growth globally for the many patients treated surgically, including those undergoing complex procedures.

Additionally, management highlighted strong surgical valve performance in the recent PARTNER III seven-year data. Meanwhile, in the past few quarters, the company made progress in advancing important innovations worldwide, including the CE Mark approval for KONECT in Europe and the launch of MITRIS in China.

TAVR Holds Potential: The TAVR business closed the third quarter of 2025 with 10.6% year-over-year growth. Edwards' strong competitive position and pricing remained stable globally. In the United States, the clinical conversations around the EARLY TAVR trial data are leading to a renewed focus on streamlining the management of patients with severe aortic stenosis (AS), enabling closer follow-up and more timely treatment of patients with aortic stenosis. In Europe, the broad-based adoption of the SAPIEN platform and the exit of a competitor resulted in a rebalancing of market share and a modest contribution to Edwards’ sales.

In May, the company received FDA approval for its SAPIEN 3 platform for severe aortic stenosis (AS) patients without symptoms, marking the first FDA approval for TAVR in asymptomatic patients. Following the CE Mark for the Alterra system for congenital heart patients, Edwards is rolling out this therapy in Europe, and initial feedback from clinicians has been positive.

TMTT Portfolio Looks Robust: Edwards is on track for strong, sustainable growth through its advancement in the long-term TMTT strategy, driven by a growing portfolio of innovative therapies. In the third quarter, the segment witnessed a 53% increase in sales compared to the prior year, driven by the strong performance of both PASCAL and EVOQUE systems globally. The adoption of differentiated PASCAL technology is expanding in both new and existing sites worldwide.

Meanwhile, Edwards is making strides with the EVOQUE commercial rollout, successfully activating new sites in both the United States and Europe (other than initial trial centers). In April, Edwards’ SAPIEN M3 mitral valve replacement system received CE Mark for the transcatheter treatment of patients with symptomatic mitral regurgitation who are unsuitable for surgery or transcatheter edge-to-edge (TEER) therapy.

Downsides for EW Stock

Macro Concerns Put Pressure on the Bottom Line: Edwards’ extensive global operations and overseas manufacturing facilities and suppliers bring certain financial, economic, political and other risks. The industrywide increase in inflationary pressure, supply constraints stemming from geopolitical complications and regulatory changes are weighing heavily on the company’s operating results. The business is also currently experiencing staffing shortages within the hospital systems. This is also putting significant pressure on the margins of Edwards. In the third quarter of 2025, these issues resulted in a 31.3% increase in COGS.

Litigation Charges May Slow Down Growth: In recent years, Edwards has been involved in substantial litigation regarding patent and other intellectual property rights with its competitors. Regardless of the outcome, these matters and regulatory actions, recalls or other actions can materially impact its business, reputation, and ability to attract and retain customers.

EW Stock Estimate Trend

The Zacks Consensus Estimate for Edwards Lifesciences’ 2025 earnings per share (EPS) has increased 1 cent to $2.59 in the past 30 days.

The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $6.03 billion. This suggests a 1% rise from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are BrightSpring Health Services BTSG, lllumina ILMN and Insulet PODD.

BrightSpring Health Serviceshas an estimated long-term earnings growth rate of 53.3% compared with the industry’s 15.5% growth. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 45.1%. BTSG shares have surged 91.5% compared with the 1.2% rise in the past year.

BTSG sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Illumina, sporting a Zacks Rank #1, has an earnings yield of 3.7% compared to the industry’s -17.9% yield. Shares of the company have dropped 8.6% in the past year against the industry’s 8.6% growth. ILMN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.7%.

Insulet, carrying a Zacks Rank #2 (Buy), has a long-term earnings growth rate of 29% compared to the industry’s 13.2% growth. Shares of the company have risen 8% against the industry’s 3.7% fall. PODD’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 17.8%. 

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

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