Penumbra PEN is gaining traction in the U.S. and international markets on strong customer uptake of its Lightning Bolt and Flash lines. Yet, unfavorable currency movement and rising expenses are major dampeners for Penumbra. The stock presently carries a Zacks Rank #3 (Hold).

Factors Driving PEN Shares

Penumbra is demonstrating strong growth within the company’s Thrombectomy business, banking on the rapid increase in sales of the company’s vascular thrombectomy products in the United States, as well as its Computer-Assisted Vacuum Thrombectomy (CAVT) line of products. In this region, the company is benefiting from sales of new products and further market penetration of existing products. In the fourth quarter of 2024, the company delivered 27.3% year-over-year growth in thrombectomy in the United States, driven by continued adoption and further market penetration of the current CAVT Portfolio, Lightning Flash 2.0 and Lightning Bolt 7. The U.S. VTE franchise delivered revenue growth of 41% year over year.

Penumbra derives a significant portion of its revenues internationally (24.5% in 2024). The company expects to materially increase both revenues and profitability in its international business in the next few years.  During this period, the company expects to bring its franchise products, such as RED catheters and CAT RX, together with all its most advanced products, Lightning Flash, Lightning Bolt 7 and Thunderbolt, to Penumbra global teams.

Penumbra is still in the early stages of its journey to bring the company’s proprietary thrombectomy technologies to patients in the United States and around internationally. In terms of product launch, the Element Vascular Access System was launched in January 2025.  This laser-cut hypotube sheath is designed for venous thromboembolism treatments and is compatible with the Lightning Flash 2.0 thrombectomy system.

Penumbra also launched its Lightning Bolt 12 and Lightning Bolt 6x with TraX in 2025. These additions to Penumbra's CAVT platform aim to enhance arterial and venous thrombus management. In terms of pipeline, the company plans to strongly focus on Flash and Bolt innovations.

Penumbra, Inc. Price

Penumbra, Inc. price | Penumbra, Inc. Quote

Over the past three months, shares of PEN have gained 18.5% compared with the industry’s 4.8% growth. The company’s consistent efforts to expand its high-growth thrombectomy business and its array of new product launches are expected to help the stock continue with its uptrend in the coming days.

Concerns Remain for Penumbra

A significant portion of Penumbra’s sales and costs are exposed to changes in foreign exchange rates. In 2024, approximately 29% of the company's consolidated revenues came from the non-U.S. markets. The company’s operations use multiple foreign currencies, including the euro and Japanese yen. Changes in those currencies relative to the U.S. dollar will impact its sales, cost of sales and expenses, and consequently, net income.

Like other industry players, Penumbra’s business is currently impacted by worldwide geopolitical complications, which have a widespread impact on global supply chains and labor markets. These have resulted in cost escalation and raw material supply constraints, as well as an increase in employee turnover rates in certain jurisdictions. All these factors are putting significant pressure on Penumbra’s profitability. In the fourth quarter of 2024, Penumbra incurred a 7.3% rise in the cost of revenues. Selling, general and administrative expenses rose 13.8% year over year.

Key Picks

Some better-ranked stocks in the broader medical space are Phibro Animal Health PAHC, Boston Scientific BSX and Cardinal Health CAH.

Phibro Animal Health has an estimated fiscal 2025 earnings growth rate of 62.1% compared with the industry’s 15.4%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 27.06%. Its shares have surged 68.2% compared with the industry’s 12.5% growth in the past year.

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

Boston Scientific, presently carrying a Zacks Rank #2 (Buy), has an earnings yield of 2.7% compared with the industry’s 1.4%. Shares of the company have rallied 56.9% compared with the industry’s 12.5% growth. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 8.3%.

Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 10.7% compared with the industry’s 9.4%. Shares of the company have rallied 15.9% against the industry’s 4.1% decline. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.6%.

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