Strength Seen in LivaNova (LIVN): Can Its 12.7% Jump Turn into More Strength?
LivaNova LIVN shares soared 12.7% in the last trading session to close at $48. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.3% loss over the past four weeks.
LivaNova scored a strong price increase, on investors’ optimism related to the company’s announcement of leadership change, with immediate effect. As per the press release, Damien McDonald has been resigned as Chief Executive Officer while, Chair of the Board William Kozy has been appointed as the interim CEO of the company. The interim CEO will assist the company’s executive leadership team to retain focus on growth and profitability.
This medical technology company is expected to post quarterly earnings of $0.41 per share in its upcoming report, which represents a year-over-year change of -14.6%. Revenues are expected to be $242.57 million, up 1% 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 LivaNova, 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 LIVN 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 >>>>
LivaNova is part of the Zacks Medical - Instruments industry. Integer ITGR, another stock in the same industry, closed the last trading session 0.3% higher at $79.79. ITGR has returned 9.1% in the past month.
For Integer , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.82. This represents a change of +5.1% from what the company reported a year ago. Integer currently has a Zacks Rank of #3 (Hold).
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LivaNova PLC (LIVN) : Free Stock Analysis Report
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