U.S. markets closed
  • S&P 500

    4,247.44
    +8.26 (+0.19%)
     
  • Dow 30

    34,479.60
    +13.36 (+0.04%)
     
  • Nasdaq

    14,069.42
    +49.09 (+0.35%)
     
  • Russell 2000

    2,335.81
    +24.40 (+1.06%)
     
  • Crude Oil

    70.78
    +0.49 (+0.70%)
     
  • Gold

    1,879.50
    -16.90 (-0.89%)
     
  • Silver

    28.05
    +0.02 (+0.07%)
     
  • EUR/USD

    1.2107
    -0.0071 (-0.58%)
     
  • 10-Yr Bond

    1.4620
    +0.0030 (+0.21%)
     
  • GBP/USD

    1.4117
    -0.0060 (-0.42%)
     
  • USD/JPY

    109.6350
    +0.2870 (+0.26%)
     
  • BTC-USD

    35,758.42
    +600.40 (+1.71%)
     
  • CMC Crypto 200

    924.19
    -17.62 (-1.87%)
     
  • FTSE 100

    7,134.06
    +45.88 (+0.65%)
     
  • Nikkei 225

    28,948.73
    -9.83 (-0.03%)
     

Omnicell (OMCL) Moves 4.9% Higher: Will This Strength Last?

  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

Omnicell OMCL shares rallied 4.9% in the last trading session to close at $133.08. 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 3.9% loss over the past four weeks.

Omnicell recorded a strong price increase on optimism surrounding its rumored acquisition deal by Baxter, a global medical technology company focused on renal and hospital products. According to a Seeking Alpha article of Mar 11, the company received a new $150/share takeover offer from Baxter. As per the article, Street Insider has first come up with this news and according to them, the takeover discussion is still going on between both the companies.

Further, last week Omnicell’s Central Pharmacy Dispensing Service got selected by Christ Hospital Health Network to enhance the latter’s medication inventory management. This has resulted in a steady rise in the stock price over the past few trading sessions.

Price and Consensus

Price Consensus Chart for Omnicell
Price Consensus Chart for Omnicell

This Omnicell Inc. Is expected to post quarterly earnings of $0.67 per share in its upcoming report, which represents a year-over-year change of +1.5%. Revenues are expected to be $245.35 million, up 6.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Omnicell, 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 OMCL 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 >>>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Omnicell, Inc. (OMCL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research