What Happened?
Shares of medical device company Penumbra (NYSE: PEN) jumped 11.8% in the afternoon session after the company reported impressive second-quarter financial results that surpassed analyst expectations and raised its full-year revenue forecast. The company posted revenue of $339.5 million, a 13.4% increase year-over-year, which beat the consensus estimate of $327.77 million. Earnings per share also came in strong at $0.86, topping expectations of $0.83. This growth was primarily fueled by its U.S. Thrombectomy business, which involves procedures to remove blood clots and saw a 22.6% revenue jump. The embolization segment, which deals with blocking blood flow for treatment, also performed well. Bolstered by this strong performance, Penumbra lifted its full-year 2025 revenue guidance, signaling confidence in its continued growth trajectory.
Is now the time to buy Penumbra? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Penumbra’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for Penumbra and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 19 days ago when the stock dropped 3% on the news that the U.S. administration announced a sharp escalation in trade tensions by threatening new tariffs on Canada.
The wider market sentiment turned negative after the White House announced plans to impose a 35% tariff on Canadian imports, sparking renewed fears of a trade war. This news prompted a sell-off across major U.S. indexes, including the S&P 500 and the Dow Jones Industrial Average, as investors grew concerned about the potential economic impact of escalating protectionist policies. The healthcare sector is especially vulnerable to such tensions due to its deeply integrated supply chains with Canada for pharmaceuticals and medical devices, meaning increased costs and potential disruptions.
Additionally, ongoing U.S. policy headwinds aimed at lowering drug prices and specific corporate challenges, like those faced by UnitedHealth Group, further compounded the sector's decline. As a result, the Health Care SPDR ETF (XLV) fell 1.0%, underperforming even as major indices pared some losses.
Penumbra is up 4.8% since the beginning of the year, but at $251.53 per share, it is still trading 17.2% below its 52-week high of $303.76 from February 2025. Investors who bought $1,000 worth of Penumbra’s shares 5 years ago would now be looking at an investment worth $1,120.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
