Establishment Labs Holdings Inc. (ESTA) Soars 7.8%: Is Further Upside Left in the Stock?
Establishment Labs Holdings Inc. ESTA shares rallied 7.8% in the last trading session to close at $31.55. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 31.2% loss over the past four weeks.
Establishment Labs scored a strong price increase, driven by investor’s optimism surrounding its impending third quarter 2023 financial results, which is slated to release on Nov 7 post the closing bell.
The Zacks Consensus Estimate for the third quarter revenue suggests a growth of 6.7% and earnings growth of 5.3%. Earlier, the company delivered a record second quarter, having grown well ahead of its underlying markets.
This company is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of +5.3%. Revenues are expected to be $40.84 million, up 6.8% 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 Establishment Labs Holdings Inc., the consensus EPS estimate for the quarter has been revised 7% 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 ESTA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Establishment Labs Holdings Inc. is a member of the Zacks Medical Services industry. One other stock in the same industry, Apollo Medical Holdings, Inc. AMEH, finished the last trading session 2.9% lower at $30.31. AMEH has returned 2.6% over the past month.
For Apollo Medical Holdings, Inc. , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.27. This represents a change of -51.8% from what the company reported a year ago. Apollo Medical Holdings, Inc. currently has a Zacks Rank of #4 (Sell).
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