Why Merit Medical (MMSI) is a Top Growth Stock for the Long-Term

Zacks' analysis identifies Merit Medical Systems (MMSI) as a potential growth stock, despite its current Zacks Rank #3 (Hold). The company boasts a B rating for both its VGM and Growth Style Scores, supported by a projected 4.1% year-over-year earnings growth for the current fiscal year. Notably, six analysts have recently revised their FY2025 earnings estimates upwards, raising the Zacks Consensus Estimate by $0.25 to $3.60 per share, while MMSI maintains an average earnings surprise of +12.9%, positioning it as a compelling consideration for growth-focused investors according to Zacks' methodology.

Analysis

Merit Medical Systems (MMSI) presents a nuanced investment case, characterized by a neutral Zacks #3 (Hold) rank but complemented by strong forward-looking growth indicators. The company holds favorable 'B' ratings for both its overall VGM and specific Growth Style Scores. While projected earnings growth for the current fiscal year is a moderate 4.1%, the outlook for fiscal 2025 is notably more positive, with six analysts having revised their earnings estimates upward in the last 60 days. This has pushed the Zacks Consensus Estimate for fiscal 2025 up by $0.25 to $3.60 per share. This improving analyst sentiment is further bolstered by the company's strong execution track record, evidenced by an average positive earnings surprise of 12.9%, suggesting a potential for outperformance relative to current expectations.

Key Decisions for Investors

• Investors should weigh the forward-looking positive earnings revisions for fiscal 2025 against the current neutral Zacks #3 (Hold) rating, as improving analyst sentiment is the core of the bullish thesis.
• Growth-oriented investors may find the stock compelling due to its B-rated Growth Style Score and a consistent history of delivering positive earnings surprises, which have averaged +12.9%.
• It is critical to monitor for continued upward revisions in analyst earnings estimates, as these are the primary catalyst highlighted by the report and foundational to the stock's long-term growth narrative.
• Consider that the investment case relies heavily on earnings acceleration in fiscal 2025, given that the forecasted 4.1% growth for the current fiscal year is relatively modest.