Stock on Focus: Nevro Corp. (NVRO)

Company Profile:

Nevro Corp. (NVRO) is a medical device company. The Company manufactures and markets active implantable medical devices for the treatment of neurological disorders initially focusing on the treatment of chronic pain. The Company developed and commercialized a neuromodulation platform for the treatment of chronic pain. The Company’s Senza system is the only spinal cord stimulation (SCS) system that delivers its HF10 therapy. The company was founded in 2006 and is headquartered in Menlo Park, California.

Recent News:

Nevro Corp. reported a loss of $19.7 million in its second quarter. The results beat Wall Street expectations. It posted revenue of $11.4 million in the period.

Nevro Corp. announced the publication of the SENZA-RCT results in the Online First edition of Anesthesiology, the official Journal of the American Society of Anesthesiologists.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

NVRO’s strengths can be seen in its better growth and strong efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator and RSI is increasing to 55.70. The P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Nevro Corp. (NVRO) a Strong BUY.