Edwards Lifesciences Corporation (EW): A Bull Case Theory

We came across a bullish thesis on Edwards Lifesciences Corporation (EW) on DIY Investor’s Substack. In this article, we will summarize the bulls’ thesis on EW. Edwards Lifesciences Corporation (EW)'s share was trading at $75.8 as of 10^th June. EW’s trailing and forward P/E were 31.55 and 31.25 respectively according to Yahoo Finance.

Edwards Lifesciences (EW) is a global leader in structural heart therapies, generating 60% of its revenue internationally and maintaining a focused mission on treating advanced cardiovascular disease.

With a 20-year track record of 14.5% annual growth, the company trades at a 32x P/E, a valuation level akin to Microsoft, though with comparatively slower growth. This premium suggests the market sees a durable moat, albeit a narrow one, anchored in intangible assets such as a respected brand and clinical leadership in transcatheter aortic valve replacement (TAVR) technology. Moderate switching costs further reinforce this position, as physicians tend to stick with TAVR systems after overcoming steep learning curves.

While the company lacks cost advantages, network effects, or efficient scale, it remains highly modelable, with limited earnings volatility and consistent operational performance. Its fair value estimate sits around $84, based on projected 2025–2026 EPS and historical multiples, implying the current share price offers an 8% discount and modest total return expectations of 25% (or ~9% annually).

What sets Edwards apart is exceptional capital discipline and management. It maintains a conservative balance sheet, prioritizes internal innovation with industry-leading R&D investment, and has a history of strategic, early-stage acquisitions that support future growth in mitral and tricuspid valve markets. Though it does not pay a dividend, its opportunistic buyback strategy reflects prudent capital return. Risks include its smaller scale versus major medtech peers, though this is offset by operational agility.

Overall, Edwards is a high-quality company trading at a premium due to its niche leadership and disciplined execution, despite moderating growth.

Previously, we highlighted a bullish thesis on Edwards Lifesciences (EW) by Natan on Substack, emphasizing its leadership in TAVR, growth runway in mitral and tricuspid markets, and long-term margin expansion potential. The stock price has appreciated by 3% since our coverage. DIY Investor shares this optimism but frames EW as a premium-quality compounder with modest upside, highlighting its narrow moat, conservative capital strategy, and stable, modelable earnings profile.

Edwards Lifesciences Corporation (EW) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held EW at the end of the first quarter which was 67 in the previous quarter. While we acknowledge the risk and potential of EW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.