New Trade for October 24th, 2023

In the midst of persistent inflation and higher-for-longer interest rates, identifying opportunities with the potential for substantial growth has become challenge, to say the least. Amidst this backdrop, one company has piqued our interest, showing remarkable promise in a market known for its innovation and resilience. 

Read on to discover a stock with compelling growth potential that aligns with the current market dynamics. With its strategic position and potential for substantial gains, this stock warrants a closer look…

AtriCure (ATRC)

In times like these, this kind of opportunity is hard to find…

Looking for a promising play in the thriving medical device sector? Look no further. AtriCure, a leading medical device provider, has caught the attention of analysts for its potential to shine in a rapidly growing market.

Why the bullish outlook? AtriCure specializes in developing, manufacturing, and selling medical devices used in the treatment of atrial fibrillation (Afib), left atrial appendage management (LAAM), and post-operative pain. With a dominant position in these cardiac arenas, the company is uniquely positioned to capitalize on robust growth opportunities.

Despite a recent dip of approximately 19% in its stock price this year, AtriCure’s prospects look promising. The company operates in two emerging markets that offer even more significant total addressable markets than its traditional niche. These segments include:

  • Open Ablation Products: AtriCure’s FDA-approved technologies for treating persistent Afib are set to drive substantial sales growth. This segment is expected to deliver mid-teen annual sales growth in 2024 and 2025, accounting for about 35% of total sales.
  •  AtriClip Product: As the most widely used LAAM device with proven benefits in preventing blood clots and stroke, AtriClip represents a substantial growth opportunity. This segment, contributing around 40% of total sales, is expected to see robust mid-teen annual sales growth in 2024 and 2025.

Furthermore, AtriCure’s rapidly expanding post-operative pain management division adds to its growth potential. With a total addressable market of nearly $1 billion, this segment is likely to experience a remarkable 20% year-over-year growth in 2023, 2024, and 2025. Already accounting for 12% of revenue (up from 5% in 2020), this division provides an attractive growth layer.

In a dynamic MedTech landscape, AtriCure’s strategic efforts to enhance operating leverage and achieve positive adjusted EBITDA are expected to contribute positively to its outlook. The company’s dominant position in key medical arenas makes it an intriguing prospect for investors.

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