Edwards Lifesciences Corporation (EW): A Bull Case Theory 

We came across a bullish thesis on Edwards Lifesciences Corporation on Natan’s Substack. In this article, we will summarize the bulls’ thesis on EW. Edwards Lifesciences Corporation’s share was trading at $76.05 as of September 15th. EW’s trailing and forward P/E were 31.82 and 28.17 respectively according to Yahoo Finance.

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Edwards Lifesciences, the global leader in heart valve therapies, delivered strong Q2 results that marked a return to double-digit growth after several quarters of slower momentum. Revenue rose 11% year-over-year, surpassing consensus expectations of 8%, while adjusted EPS came in at $0.67, beating by 8%. The stock reacted positively, climbing 5% on the day and extending a 16% rebound from January 2025 lows, when it was significantly undervalued relative to peers. The results reaffirm Edwards’ position as the highest-quality company in the structural heart disease space, with Sapien remaining the only transcatheter aortic valve replacement (TAVR) platform approved for asymptomatic patients in both the U.S. and Europe.

Improved durability data further strengthen Sapien’s competitive position, addressing concerns versus surgical valve replacement. Segment performance was broad-based, with TAVR revenue up 8% and regaining momentum, transcatheter mitral and tricuspid therapies (TMTT) soaring 57% on strong adoption of Evoque and Pascal, and surgical revenue growing 7%, at the upper end of long-term targets. Importantly, these results precede key catalysts such as broader TAVR adoption, expected U.S. approval of Sapien M3 in 2026, and the pending JenaValve acquisition.

Reflecting confidence, management raised 2025 revenue guidance to 9–10% and guided EPS toward the high end of its $2.40–2.50 range. Based on a valuation model assuming 10% revenue growth, expanding margins, and share buybacks, fair value estimates imply a five-year CAGR of 12.6% with defensive, resilient returns. Edwards remains undervalued despite recent gains, offering attractive upside relative to the broader market at record highs.

Previously we covered a bullish thesis on Edwards Lifesciences Corporation (EW) by Natan in January 2025, which highlighted the company’s leadership in structural heart therapies, dominance in TAVR, and expansion into mitral and tricuspid markets. The company’s stock price has appreciated approximately by 3.86% since our coverage. This is because the thesis played out with renewed growth momentum. The thesis still stands as Natan shares an identical thesis but emphasizes on Q2 earnings strength and raised guidance.

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Disclosure: None.