Is Edwards Lifesciences Corporation (EW) A Good Stock To Buy Now?

Is EW a good stock to buy? We came across a bullish thesis on Edwards Lifesciences Corporation Torre Financial Newsletter’s Substack by Federico Torre. In this article, we will summarize the bulls’ thesis on EW. Edwards Lifesciences Corporation’s share was trading at $83.92 as of March 16th. EW’s trailing and forward P/E were 46.17 and 28.49 respectively according to Yahoo Finance.

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Edwards Lifesciences Corporation provides products and technologies to treat advanced cardiovascular diseases in the United States and internationally. EW has completed its transition into a pure-play structural heart disease leader, sharpening its focus on high-growth, high-margin segments following the divestiture of its Critical Care business to Becton, Dickinson and Company for $4.2 billion in cash.

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This strategic move, while removing roughly 20% of its 2023 EBITDA base, has been effectively offset by the rapid expansion of its Transcatheter Mitral and Tricuspid Therapies (TMTT) segment, which is growing over 50% year-over-year and emerging as a key driver of future growth.

At the same time, its core Transcatheter Aortic Valve Replacement (TAVR) franchise, generating over $4.5 billion in annual revenue with 12%+ growth, continues to provide a stable and scalable foundation, with additional upside from expanded indications such as asymptomatic and moderate aortic stenosis patients.

Trading at approximately $78 following a pullback from recent highs of $87, Edwards Lifesciences presents an attractive entry point supported by strong fundamentals, including 78% gross margins, a solid balance sheet with $3.8 billion in cash, and improving free cash flow generation. The company’s valuation of ~21.3x EV/NTM EBITDA remains below its historical average of 26x, suggesting room for multiple expansion alongside expected EBITDA growth of 10–11% CAGR.

With ongoing share repurchases, disciplined capital allocation, and a long-term growth outlook driven by demographic tailwinds and innovation in transcatheter therapies, Edwards Lifesciences is well positioned for sustained double-digit earnings growth. In a favorable scenario, a combination of earnings expansion and multiple re-rating could drive compelling double-digit annualized returns from current levels.