Reasons to Retain Penumbra Stock in Your Portfolio for Now

Penumbra, Inc.’s PEN robust product portfolio expansion is poised to drive growth in the upcoming quarters. The company’s global expansion efforts are thriving. Unfavorable foreign exchange and a dull macroeconomic scenario may pose operational risks for PEN.

In the past year, shares of this Zacks Rank #3 (Buy) company have risen 24.8% against the industry’s 7.2% decline. The S&P 500 composite has risen 18.7%.

The global healthcare provider company has a market capitalization of $13.18 billion. PEN beat on earnings in each of the trailing four quarters, the average surprise being 11.3%.

Tailwinds for Penumbra

Strong Portfolio Expansion: Penumbra is advancing its proprietary thrombectomy technologies across the United States and internationally, with consistent revenue growth driven by strong adoption of its CAVT portfolio. Lightning Bolt 6X and Lightning Bolt 7 are accelerating physician conversions from surgery, analytics and other mechanical thrombectomy platforms in arterial cases.

The Element Vascular Access System, launched in 2025, complements Flash 2.0 in VTE treatment. Ruby XL also began shipping in 2025, expanding Penumbra’s peripheral embolization portfolio to cover approximately 20% of the market previously untapped.

RED 72 (SILVER LABEL) has seen strong physician uptake in 2025, while RED 43 continues to lead in distal occlusions. The company announced results from the landmark STORM-PE randomized controlled trial (RCT), which showed that CAVT combined with anticoagulation achieved a superior reduction in right heart strain compared to anticoagulation therapy alone in patients with acute intermediate-to-high-risk pulmonary embolism. Meanwhile, the STRIDE II trial has been launched to evaluate next-generation CAVT technology in arterial cases.

Global Expansion Continues: Penumbra derives a significant portion of its revenues internationally (22.2% in 2025). The company expects to materially increase both revenues and profitability in the company’s international business in the next few years.

Recently, Penumbra expanded its CAVT footprint into Europe and other markets outside the United States, while taking steps to optimize its global presence to support long-term growth and profitability. The company had previously launched the RED 72 SILVER LABEL catheter for stroke, along with its computer-orchestrated thrombectomy systems, Lightning 12 and Lightning 7, in Europe. With the continued rollout of these innovations, Penumbra expects a meaningful impact on international growth through 2025 and beyond.

What Ails PEN Stock?

Macroeconomic Concerns: Outside the United States, Penumbra sells its products to healthcare providers through direct sales organizations and distributors in select international markets. The wide presence makes its operations vulnerable to macroeconomic risks, including disruptions to global trade resulting from changes in trade agreements or tariffs.

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While the company has been able to offset much of the impact through favorable product mix and productivity improvements, selling, general and administrative (SG&A) expenses still rose 22.4% year over year in the fourth quarter of 2025, largely due to targeted hiring in the company’s commercial and market access teams. These investments, alongside ongoing macroeconomic challenges, are expected to weigh on near-term profitability.

Foreign Exchange Impacts Sales: A significant portion of Penumbra’s sales and costs is exposed to changes in foreign exchange rates. In 2025, approximately 22% of the company's consolidated revenues came from the non-U.S. markets. PEN’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.

PEN Stock Estimate Trends

In the past 30 days, the Zacks Consensus Estimate for Penumbra’s 2026 earnings has remained unchanged at $5.06 per share.

The Zacks Consensus Estimate for 2026 revenues is pegged at $1.59 billion, indicating a 12.9% rise from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Globus Medical GMED, Phibro Animal Health PAHC and Intuitive Surgical ISRG.

Globus Medical has an earnings yield of 5.2%, well ahead of the industry’s -1.6% yield. Its earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.8%. The company’s shares have rallied 15.9% against the industry’s 7.5% decline over the past year.

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

Phibro Animal Health, sporting a Zacks Rank #1 at present, has an earnings yield of 6.1% compared with the industry’s 2.6% return. Shares of the company have soared 156.6% against the industry’s 20.5% decline. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 20.2%.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 2.1% against the industry’s 0.7% decline. Shares of the company have dropped 6.2% compared with the industry’s 7.4% decline. ISRG’s earnings topped estimates in each of the trailing four quarters, the average surprise being 13.2%.

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Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report

Globus Medical, Inc. (GMED): Free Stock Analysis Report

Phibro Animal Health Corporation (PAHC): Free Stock Analysis Report

Penumbra, Inc. (PEN): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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