ANGO Jumps 33.5% in 3 Months: Can the Rally Keep Going?

AngioDynamics, Inc. ANGO shares have gained 33.5% in the past three months, sharply outpacing the broader market and the medical sector. The rally reflects growing interest in the company’s shift toward faster-growing Med Tech platforms.

The next leg depends on execution. Med Tech momentum is improving, but valuation, tariffs and a still-negative earnings outlook leave less room for setbacks.

Med Tech Growth Supports ANGO’s Momentum

Fiscal fourth-quarter Med Tech revenues rose 16.7% year over year to $41.8 million and accounted for 48% of total sales, up from 45% a year earlier. The mix shift matters because Med Tech carries higher gross margins than the company’s Med Device business.

Management expects Med Tech revenues to increase 12%-15% in fiscal 2027. That outlook supports the transformation case, though it does not establish that recent operating gains alone drove the share-price move.

NanoKnife Adds Fuel to ANGO’s Story

NanoKnife revenues jumped 64.5% in the fiscal fourth quarter to $11.8 million. Record prostate procedure volumes lifted probe sales 47%, while capital-system revenues increaseds 132.5%.

Expanded regulatory clearances, new reimbursement pathways and a larger installed base could support recurring probe utilization. Capital placements can vary by quarter, making disposable demand the more useful measure of underlying procedure activity.

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Auryon Gives ANGO Another Durable Driver

Auryon revenues advanced 14.4% to $17.8 million, marking the platform’s 20th consecutive quarter of double-digit growth. Hospital penetration, office-based laboratory expansion and early international adoption supported the increase.

Management expects mid-teens Auryon growth in fiscal 2027. The competitive field includes Boston Scientific Corporation BSX, whose vascular portfolio covers atherectomy and thrombectomy. Medtronic plc MDT has also expanded into peripheral mechanical aspiration thrombectomy, reinforcing the need for AngioDynamics to sustain clinical and commercial differentiation.

Valuation Raises the Bar for ANGO

ANGO trades at 1.89X forward sales, above its five-year median of 1.36X. Although the multiple remains below the cited sub-industry level, the premium to the stock’s own history indicates that investors are already assigning value to the Med Tech transition.

A higher multiple is not automatically excessive, especially when revenue mix and margins are improving. Still, further upside likely requires continued double-digit platform growth and clearer evidence that operating gains can translate into stronger earnings.

Tariffs Could Slow ANGO’s Earnings Conversion

Tariff expense reached $4.8 million in fiscal 2026 and reduced gross margin by an estimated 151 basis points. Favorable mix and pricing still helped full-year gross margin increase 70 basis points to 54.6%.

Fiscal 2027 gross-margin guidance of 54%-55% points to limited expansion despite a larger contribution from higher-growth Med Tech products. With tariff costs expected to remain broadly similar, revenue growth may convert into earnings more slowly than investors expect.

ANGO’s Underperform Signal Tempers the Rally

ANGO’s operating story is improving, but the recent price gain and above-history sales multiple raise the execution threshold. NanoKnife and Auryon provide credible growth drivers, while tariffs, clinical-program risk and uneven earnings conversion remain offsets.

The stock currently carries a Zacks Rank #4 (Sell), signaling caution in the near term. Its Style Scores are mixed, with a Growth Score of B reflecting a relatively favorable earnings growth profile, offset by a Value Score of D, which suggests shares are not particularly attractive from a valuation standpoint. Meanwhile, Momentum and VGM Scores of C indicate a neutral overall profile. Taken together, the Rank, valuation, fiscal 2027 growth outlook and execution risks point to a cautious investment stance.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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