EV3 Inc. (EVVV): Endovascular Company that’s Coming on Strong

By Timothy Lutts, Chief Investment Strategist and Editor of Cabot Stock of the Month Report

From Cabot Wealth Advisory 2/8/10 Sign up for free Cabot Wealth Advisory e-newsletter

While the market was tanking least week, there was a handful of stocks, notably health care stocks, that remained resilient.

One of my favorites is EV3 Inc. (EVVV), a Minnesota company whose stock has been coming on strong, climbing from 11 to 15 in the past thee months. Because of this strength, the stock earned a spot in Cabot Top Ten Report last week, and here’s what editor Michael Cintolo wrote.

“EV3 calls itself “Your endovascular company.” Its expertise is the minimally invasive treatment of lower extremity peripheral vascular and neurovascular diseases. The company has developed and acquired a portfolio of devices including stents, guidewires, balloon catheters, thrombectomy catheters, plaque excision systems, embolic protection devices, liquid embolics, embolization coils, flow diversion systems and occlusion balloons. And business is good; revenues have grown every year of the past decade.  Looking forward, earnings estimates are up, profit margins are very healthy and growing, and the number of institutional investors is growing, too. In fact, back on January 19, JP Morgan upgraded the stock to “overweight,” setting a price target of 19.”

Mike recommended that subscribers buy the stock between 14 and 15, and the good news is that as the week went by, the stock declined calmly in sympathy with the market, closing at 14.  I think it’s a decent buy here.

Editor’s Note: Discover the strongest stocks in the market with Cabot Top Ten Report! Editor Michael Cintolo combines our proprietary Optimum Momentum stock-screening tool with his expert growth stock advice to select the top 10 stocks in the market each and every week. Click here for more information.

Mike Cintolo
Michael Cintolo

Vice President of Investments and Editor of Cabot Market Letter and Cabot Top Ten Weekly

A growth stock and market timing expert, Michael Cintolo is editor of Cabot Market Letter and Cabot Top Ten Weekly. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides that has helped Cabot place among the top handful of market-timing newsletters numerous times.