Merit Medical Systems, Inc. MMSI is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism, led by a solid product performance and its continued spending on research and development, is expected to contribute further. However, tariffs and trade policy headwinds and China macro pressure persist.
This Zacks Rank #2 (Buy) company’s shares have gained 2.9% in the year-to-date period compared with the industry’s 6.5% growth and the S&P 500’s 10.8% rise.
The renowned medical device provider has a market capitalization of $5.41 billion. The company projects 10.4% growth for the next five years and expects to maintain its strong performance going forward. It delivered an average earnings surprise of 14.1% for the past four quarters.
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Let’s delve deeper.
MMSI’s Growth Drivers
Broad Product Portfolio and Continued R&D Investment: Merit Medical benefits from a diversified portfolio across cardiology, radiology, oncology, critical care and endoscopy. Recent launches and acquisitions, including the Resilience Through-the-Scope Esophageal Stent, View Point Medical’s OneMark, SCOUT MD and the integration of Biolife’s StatSeal, are expanding its presence across diagnosis, localization, therapy and procedural support. R&D spending remained focused on product renewal, with expenses representing 6.1% of sales in the second quarter of 2026, up 4.2% year over year. The company is also prioritizing its pipeline and potential tuck-in acquisitions under its 2027-2029 strategic plan.
WRAPSODY Provides a Multi-Year Renal Therapy Opportunity: Merit Medical’s WRAPSODY Cell-Impermeable Endoprosthesis remains a growth opportunity as the company rebuilds U.S. account activity and expands physician adoption following its recall. The device demonstrated favorable 24-month clinical outcomes in the WAVE trial, with target lesion primary patency of 48.6% versus 29.8% for angioplasty in the randomized arteriovenous fistula arm. Positive physician feedback and use across hospital and non-hospital settings support continued adoption, with MMSI maintaining a measured $7 million U.S. revenue assumption.
Global Exposure and Focused Growth Strategy: Merit Medical’s geographic diversification provides multiple avenues for expansion. In the second quarter of 2026, domestic revenues increased 11.5% on a constant-currency basis, while international revenues rose 4.7%. The company is expanding Biolife internationally and developing a 2027-2029 strategic plan focused on growth opportunities, organizational capabilities and capital allocation. Its planned M&A framework will emphasize targeted tuck-in acquisitions and high-growth procedures where it can leverage both foundational and therapeutic products.
Key Challenges for MMSI Stock
Tariff Concerns: Merit Medical remains exposed to trade policy changes, geopolitical instability and global macroeconomic uncertainty. The company received $6.9 million in tariff refunds during the second quarter but still incurred approximately $2 million in incremental tariff costs. Management now expects tariffs to have a $16 million, or 21 cents per share, impact on 2026 results, up from its previous $15 million estimate. The outlook also excludes trade actions implemented after July 30, 2026, highlighting ongoing forecasting uncertainty. Further tariff changes, refunds and related sourcing, manufacturing or pricing actions could create additional pressure on operating performance.
Stiff Competition in MedTech Space: Merit Medical competes with diversified medical-device companies and specialized participants across several product categories. The company’s expanding therapeutic portfolio increases the need to support multiple launches while defending established product positions. Management acknowledged that competitors in the WRAPSODY market are not standing still and described the commercial environment as a competitive battle.
Merit Medical is also introducing SCOUT MD and OneMark into a market where physician preferences and price differences influence technology selection. Management is reviewing product families under its 2027-2029 strategic planning process to determine whether they remain appropriate for the longer-term portfolio. The need to prioritize resources across a broad product base can add execution complexity. Competitive substitution or pricing actions could slow adoption of newer technologies and require additional commercial investment.
Merit Medical Systems, Inc. Price
Merit Medical Systems, Inc. price | Merit Medical Systems, Inc. Quote
Estimate Trend
MMSI is witnessing a positive estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has moved 0.9% north to $4.30.
The Zacks Consensus Estimate for the company’s third-quarter 2026 revenues is pegged at $410.4 million, suggesting a 6.8% rise from the year-ago reported number. The consensus mark for EPS is pegged at $1.04, implying 13% growth from the prior-year reported figure.
Other Stocks to Consider
Some other top-ranked stocks from the broader medical space are Globus Medical GMED, Veracyte VCYT and West Pharmaceutical WST.
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Globus Medical’s shares have lost 7.8% compared with the industry’s 8.9% decline in the year-to-date period.
Veracyte, currently flaunting a Zacks Rank #1, has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
Veracyte’s shares have risen 3.2% against the industry’s 8.9% decline in the year-to-date period.
West Pharmaceutical, carrying a Zacks Rank #2 at present, has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.
West Pharmaceutical’s shares have gained 23% compared with the industry’s 6.5% growth in the year-to-date period.
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This article originally published on Zacks Investment Research (zacks.com).