Edwards Lifesciences Corp. (EW), a medical technology leader focused on structural heart disease, is demonstrating strong momentum, according to Wall Street expert Josh Brown. The company, with a rich history dating back to the invention of the first artificial heart valve, is now a $46 billion entity treating over two million patients worldwide.
Recent Q1 2026 earnings showed robust growth, with the company raising its full-year guidance and its fastest-growing segment, heart-related therapies, posting 42% year-over-year growth. Technically, the stock has broken out of a multi-month consolidation, showing strong support at the $81 level, indicating a favorable setup for continued upward movement.
In the dynamic world of medical technology, few companies boast a legacy as rich and a current trajectory as promising as Edwards Lifesciences Corp. (EW). As highlighted by Wall Street expert Josh Brown, this medtech giant, a consistent performer on "The Best Stocks in the Market" list and a select member of the exclusive "Porterhouse" portfolio strategy, is currently hitting a powerful stride.
The story of Edwards Lifesciences is rooted in a remarkable act of personal passion and innovation. Miles "Lowell" Edwards, a man whose childhood encounter with rheumatic fever ignited a lifelong fascination with the human heart, embarked on a mission at age 60 to develop the world's first artificial heart. Though the fully mechanical heart proved an elusive goal at the time, his collaboration with cardiac surgeon Dr. Albert Starr yielded a groundbreaking innovation: the Starr-Edwards mitral valve. This device, successfully implanted in 1960, was the first commercially available artificial heart valve, fundamentally changing cardiac care and cementing Edwards' place as a pivotal player in the industry.
From its humble beginnings with Edwards' $5,000 investment, the company has evolved into a $46 billion powerhouse, transforming the lives of over two million cardiac patients worldwide. Its journey through acquisitions by American Hospital Supply and Baxter International, followed by its spin-off as an independent entity in 2000, has culminated in its current status as a NYSE-listed leader.
Modern Fundamentals and Growth Prospects
Sean Russo of Ritholtz Wealth Management elaborates on the robust fundamentals driving Edwards Lifesciences today. The company specializes in therapies for structural heart disease, and its stock, after a period of consolidation, has shown a strong uptrend since July 2024. Growth is significantly fueled by early disease identification, expanding the total addressable market for their innovative treatments.
The company's newest heart-related therapies segment is a particular highlight, demonstrating impressive year-over-year growth of approximately 42% in Q1 2026. Following a stellar Q1 earnings report, Edwards Lifesciences raised its full-year 2026 guidance, projecting constant currency sales growth of 9%-11%, translating to revenues between $6.5 billion and $6.9 billion. Adjusted EPS guidance was also lifted to $2.95-$3.05, with operating margins expected at the higher end of the 28%-29% range, indicating approximately 150 basis points of expansion. Looking further ahead, management has reaffirmed its long-term target of around 10% average annual sales growth from 2027 onwards, coupled with 50-100 basis points of annual operating margin expansion – metrics highly favored by momentum-driven investment strategies.
"Edwards Lifesciences checks the boxes that matter most for our momentum strategies — solid fundamentals, a meaningful growth tilt and a stock price beginning to confirm the story that the business is telling," Russo notes. "This is the sweet spot for both our Best Stocks list and Porterhouse."
Technical Analysis and Risk Management
Josh Brown offers a technical perspective, emphasizing the stock's recent breakout and consolidation pattern. For the past six months, EW built a base between $75 and $87, consolidating gains from its October lows. The $87 level served as a resistance point until recently. Following a successful breakout, the stock has retested the $81 area, demonstrating strong support and subsequently launching back towards its highs.
"With no overhead supply to contend with, the path of least resistance is up," Brown states. He highlights the appeal of stocks that break out, digest the move, and then embark on another leg higher, suggesting a healthy accumulation phase where buyers are absorbing all available selling pressure. The new high signifies diminishing selling conviction and increasing buyer aggression.
The alignment of this technical strength with a fundamental inflection point creates a highly favorable setup. The Relative Strength Index (RSI) stands at a healthy 63, indicating robust momentum without signs of exhaustion. The RSI has been trending higher since February, confirming escalating buyer interest. Brown suggests that traders can use a close back below $81 as a stop-loss point, the level where the recent retest found its footing. For long-term investors, the convergence of the 50-day and 200-day moving averages around this $81 zone, coupled with the decisive bounce, reinforces it as a critical support floor. A breach of this level on a closing basis would signal a significant shift in the stock's technical character.
It is important to note that CNBC Pro contributors' opinions are their own and do not necessarily reflect those of CNBC or its affiliates. This content is for informational purposes only and does not constitute financial advice.
Disclosure: Ritholtz Wealth Management currently holds shares of EW for clients in their Porterhouse strategy.
