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IRHYTHM TECH (IRTC) Moves 35% Higher: Will This Strength Last?

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IRHYTHM TECH IRTC shares rallied 35% in the last trading session to close at $64.96. 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 5.6% gain over the past four weeks.

The stock recorded a strong price increase following the appointment of Quentin Blackford as President and Chief Executive Officer of the company and a member of the Board of Directors, effective Oct 4, 2021. Management believes that Mr. Blackford’s strong track record of strategic, operational and financial execution with high growth companies will benefit the stock to drive its next phase of growth. Also, a better-than-expected second-quarter 2021 performance raises optimism.

Price and Consensus

Price Consensus Chart for IRTC
Price Consensus Chart for IRTC

This company is expected to post quarterly loss of $0.97 per share in its upcoming report, which represents a year-over-year change of -470.6%. Revenues are expected to be $81.43 million, up 13.2% 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 IRHYTHM TECH, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on IRTC 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 >>>>

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