Have you been paying attention to shares of AtriCure (ATRC)? Shares have been on the move with the stock up 2.4% over the past month. The stock hit a new 52-week high of $43.18 in the previous session. AtriCure has gained 7.2% since the start of the year compared to the 7.8% move for the Zacks Medical sector and the -0.5% return for the Zacks Medical - Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 29, 2025, AtriCure reported EPS of -$0.01 versus consensus estimate of -$0.11 while it beat the consensus revenue estimate by 2.09%.
For the current fiscal year, AtriCure is expected to post earnings of -$0.08 per share on $533.17 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $0.34 per share on $599.85 in revenues. This represents a year-over-year change of 63.54% and 12.51%, respectively.
Valuation Metrics
Though AtriCure has recently hit a 52-week high, what is next for AtriCure? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
AtriCure has a Value Score of C. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, AtriCure currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if AtriCure meets the list of requirements. Thus, it seems as though AtriCure shares could have a bit more room to run in the near term.
How Does ATRC Stack Up to the Competition?
Shares of ATRC have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is VAREX IMAGING (VREX). VREX has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. VAREX IMAGING beat our consensus estimate by 105.56%, and for the current fiscal year, VREX is expected to post earnings of $0.89 per share on revenue of $867.8 million.
Shares of VAREX IMAGING have gained 12.6% over the past month, and currently trade at a forward P/E of 14.88X and a P/CF of 3.41X.
The Medical - Products industry may rank in the bottom 67% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for ATRC and VREX, even beyond their own solid fundamental situation.
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AtriCure, Inc. (ATRC): Free Stock Analysis Report VAREX IMAGING (VREX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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