CVRx (CVRX) Surges 7.2%: Is This an Indication of Further Gains?
CVRx (CVRX) shares soared 7.2% in the last trading session to close at $15.44. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 15% gain over the past four weeks.
CVRx scored a strong price increase driven by optimism surrounding the company’s recent announcement about joining the Russell 2000 Index and the broad-market Russell 3000 Index. This is effective after the U.S. market opened on June 26, according to a preliminary list of additions posted May 19. Being part of these renowned indexes further solidifies CVRx position in the market and highlights its commitment to delivering value to the shareholders. Moreover, the raised sales guidance for 2023 as announced during the first-quarter 2023 earnings call, also raises investors’ optimism on the stock.
This medical device company is expected to post quarterly loss of $0.57 per share in its upcoming report, which represents a year-over-year change of -5.6%. Revenues are expected to be $8.56 million, up 70.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For CVRx, the consensus EPS estimate for the quarter has been revised 4.5% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on CVRX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
CVRx is a member of the Zacks Medical - Instruments industry. One other stock in the same industry, Sensus Healthcare, Inc. (SRTS), finished the last trading session 4% lower at $3.15. SRTS has returned 20.6% over the past month.
Sensus Healthcare, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. Compared to the company's year-ago EPS, this represents a change of -123.8%. Sensus Healthcare, Inc. currently boasts a Zacks Rank of #4 (Sell).
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CVRx, Inc. (CVRX) : Free Stock Analysis Report
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