Yes, there have been several high-profile IPO flops this year, notably those of ride-sharing giants Lyft and Uber.
But if we zoom out a bit, we can see that in this busy year for new stocks, freshman issues have actually done pretty well. According to IPO specialist Renaissance Capital’s Renaissance IPO Index, new issues have collectively risen by more than 32% so far this year, against a comparable 13% increase for the S&P 500. There are numerous reasons for this; three of them are the success of these stocks — the best-performing IPOs of 2019 to date…
Over the past few years, some of the top IPO performers have been companies in the medical sector. One recent example is our No. 1 IPO for YTD 2019, ShockWave Medical(NASDAQ:SWAV).
The company is a medical device maker that is focused on the cardiovascular segment. It’s still at a fairly early stage, and as such has yet to turn a profit. Nevertheless, its revenue growth is hot, with a more than fivefold increase from Q1 2018 to the same quarter this year (although we’re not talking vast piles of money here; the latter number was $7.3 million).
ShockWave Medical’s products are designed to address two disease categories: peripheral artery disease and coronary artery disease. The company has not yet received Food and Drug Administration approval to sell its coronary artery disease items in the U.S. It aims to get this FDA green light within two years or so. It seems investors are bullish on this prospect — if realized, it could really put some zip in that revenue figure.
ShockWave Medical’s stock most recently closed nearly 242% above its March 7 IPO price of $17 per share.
Beyond Meat (NASDAQ:BYND) is the IPO that breathed life into the new-issues market following the steep dive of Lyft shares. Beyond Meat started trading on May 2, shortly after Lyft’s stall, and has been a hit stock ever since.
The company is the first “alternative meat” food producer on the public markets. I believe this first-mover advantage, plus the general excitement about food that tastes like beef, chicken, pork, etc., without the need to use actual animals, are driving interest in this stock.
That said, the company is…
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