Abiomed (NASDAQ: ABMD), a maker of heart pumps for use during medical procedures, had a difficult 2019. The stock fell 48%, earnings missed analysts' estimates after three quarters of positive surprises, and the company recently slashed its outlook for the full year. While all of this may sound grim, it actually points to a buying opportunity.
The old saying is "Lightning never strikes the same place twice," but for Abiomed, it did. The company's earnings and share price troubles weren't linked to real problems with its products, but instead, to the interpretation of two separate pieces of news.
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