Glaukos (GKOS) is back in focus after completing patient enrollment for its Phase 2 GLK-321 trial targeting Demodex blepharitis, a move that coincides with rising expectations around its Epioxa glaucoma franchise.

The GLK-321 update has arrived alongside a sharp pick up in momentum, with Glaukos posting a 1-day share price return of 7.83% and a 30-day share price return of 18.67%. Its 1-year total shareholder return of 46.21% and 3-year total shareholder return of 109.67% point to sustained enthusiasm around the story despite recent index removals.

If this kind of healthcare pipeline news has your attention, it could be a good moment to broaden your watchlist with other potential ocular and vision-related opportunities using the 40 healthcare AI stocks

With Glaukos shares up strongly over 1 day, 30 days and 1 year, and trading about 6% below the average analyst price target, the key question is simple: is there still a buying opportunity here, or is the market already pricing in much of the future growth story?

Most Popular Narrative: 5.8% Undervalued

On the most followed narrative, Glaukos screens slightly undervalued, with a fair value of $157.50 against a last close of $148.34, and that gap is driven by specific growth and profitability assumptions rather than sentiment alone.

Glaukos' pipeline diversification into corneal health (Epioxa approval expected in late 2025/early 2026), novel glaucoma devices, and early-stage retinal programs positions the company to benefit from increased diagnostic rates and expanding access to ophthalmic interventions globally, providing avenues for future top-line growth and risk mitigation against single-product dependency.

Curious what justifies that valuation uplift for Glaukos? The narrative focuses on fast compounding revenue, a sharp swing into profitability, and a future earnings multiple usually reserved for high growth leaders. Want to see which precise growth, margin and earnings paths have been incorporated, and how they add up to that fair value assessment?

Result: Fair Value of $157.50 (UNDERVALUED)

However, Glaukos investors still need to watch reimbursement decisions around iDose, as well as any setbacks in clinical or regulatory timelines that could challenge the current growth narrative.

Another View: What Glaukos' Sales Multiple Is Telling You

That 5.8% analyst undervaluation sits awkwardly beside how the market is already pricing Glaukos on sales. The stock trades on a P/S of 15.8x versus a fair ratio of 8.3x, and against 2.9x for the US Medical Equipment industry and 5.3x for peers, which suggests investors are paying a steep premium for the growth story. How comfortable are you with that gap?

Next Steps

If the mixed signals around Glaukos leave you torn between caution and optimism, consider acting while the data is fresh and test the thesis against your own expectations using the 2 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Glaukos?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.