Orthofix (OFIX) Soars 6.4%: Is Further Upside Left in the Stock?
Orthofix OFIX shares rallied 6.4% in the last trading session to close at $11.96. 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 14.9% loss over the past four weeks.
Orthofix scored a strong price increase, driven by investor’s optimism surrounding the company’s recent announcement of FDA 510(k) clearance and full commercial launch of OsteoCove. The launch of the advanced bioactive synthetic graft significantly strengthens Orthofix’s biologics portfolio, having been successfully leading in both the demineralized bone matrices (DBM) and cellular allograft markets. This might have boosted investors’ confidence in the stock.
This medical device maker is expected to post quarterly loss of $0.23 per share in its upcoming report, which represents a year-over-year change of -276.9%. Revenues are expected to be $185.7 million, up 62.9% 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 Orthofix, 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 OFIX 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 >>>>
Orthofix is part of the Zacks Medical - Instruments industry. OrthoPediatrics KIDS, another stock in the same industry, closed the last trading session 4.7% lower at $24.20. KIDS has returned -24% in the past month.
OrthoPediatrics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.20. Compared to the company's year-ago EPS, this represents a change of -300%. OrthoPediatrics currently boasts a Zacks Rank of #3 (Hold).
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ORTHOFIX MEDICAL INC. (OFIX) : Free Stock Analysis Report
OrthoPediatrics Corp. (KIDS) : Free Stock Analysis Report
