Should You Hold Edwards Lifesciences Stock in Your Portfolio?

The renowned global medical device company has a market capitalization of $49.51 billion. EW’s earnings yield of 3.3% favorably compares with the industry’s negative 1.6% yield. In the trailing four quarters, Edwards delivered an average earnings surprise of 4.5%.

Let’s delve deeper.

Upsides for EW Stock

TAVR Holds Potential: Edwards’ TAVR franchise continues to benefit from the clinical and technology investments built around the SAPIEN platform. Second-quarter 2026 TAVR sales were about $1.3 billion and increased 10.5% on a constant-currency basis. The evidence base continues to support broader and earlier treatment. A seven-year PARTNER 3 subanalysis reinforced SAPIEN valve performance and durability, while a five-year EARLY TAVR analysis added evidence supporting intervention earlier in the aortic-stenosis disease pathway. 

Updated European guidelines are also shaping clinical discussion around proactive treatment, and Japan approved the asymptomatic indication in second-quarter 2026. The next catalyst is the PROGRESS trial, which will evaluate whether certain moderate aortic-stenosis patients may benefit from earlier TAVR treatment.

TMTT Portfolio Holds Potential: Edwards’ TMTT portfolio remains a major source of growth as it scales repair and replacement therapies across mitral and tricuspid disease. Second-quarter 2026 TMTT sales were $195.9 million, up 44.8% on a constant-currency basis, with global mitral and tricuspid procedure growth remaining in the double digits. PASCAL, EVOQUE and SAPIEN M3 all contributed ahead of management’s expectations. 

During second-quarter 2026, Edwards received CE Mark for SAPIEN M3 RESILIA and broadened the European indication for SAPIEN M3 and SAPIEN M3 RESILIA to patients with mitral annular calcification. ENCIRCLE registry data also showed low 30-day mortality, near elimination of regurgitation and quality-of-life improvement in this population.

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What Ails EW Stock?

Foreign Exchange Remains a Margin Risk: Currency movements remain an important earnings variable because Edwards generates substantial sales and expenses outside the United States. Foreign exchange increased second-quarter 2026 reported sales by about $15 million, but reduced adjusted gross margin by roughly 70 basis points compared with the prior year. Management expects foreign exchange to reduce second-half sales by about $35 million if rates remain at current levels and now sees 2026 gross margin near the lower end of its 78% to 79% range. 

Competitive Landscape Remains Intense: Structural heart remains a highly competitive medical-technology market, requiring continued investment in evidence, product development and physician adoption. Edwards reported modest year-over-year competitive-position gains in U.S. and European TAVR during second-quarter 2026, but part of growth still reflected a competitor’s 2025 market exit, with management indicating the European benefit was likely ending after the quarter. The company, therefore, must sustain SAPIEN differentiation as that comparison rolls off. Edwards is investing in next-generation SAPIEN and PASCAL technologies, yet failure to maintain technological or evidence advantages could weaken share and raise commercial spending over time. 

EW Stock Estimate Trend

The Zacks Consensus Estimate for Edwards’ 2026 earnings per share (EPS) has remained constant at $3.00 in the past 30 days.

The consensus estimate for its 2026 revenues is pegged at $6.76 billion, indicating an 11.4% improvement from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Globus Medical GMED, Veracyte VCYT and Teleflex TFX.

Globus Medical has an earnings yield of 5.8% in contrast to the industry’s negative 1.7% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED’s shares have rallied 42.3% against the industry’s 6.3% fall over the past year.

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

Veracyte, sporting a Zacks Rank #1, has an earnings yield of 4.6% compared to the industry’s negative 1.7% yield. Shares of the company have risen 38% against the industry’s 6.3% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%. 

Teleflex, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 12.8% rise. Its earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. TFX’s shares have rallied 5% against the industry’s 6.2% decline over the past year.

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

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