Strength Seen in RxSight, Inc. (RXST): Can Its 9.6% Jump Turn into More Strength?
RxSight, Inc. RXST shares soared 9.6% in the last trading session to close at $28.90. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.2% gain over the past four weeks.
RxSight scored a strong price increase, driven by investor’s optimism surrounding the company’s impressive quarterly performance for the three months ended March 31, 2023.
The company held momentum on the increasing adoption and utilization of its premium cataract solution, the Light Adjustable Lens system. Further, the company’s updated revenue guidance suggested an implied growth of 61%-71% compared to 2022 (previously 59%-69%). Gross margin for the full year is expected to be 56%-58% (earlier 52%-54%). This might have further boosted investors’ confidence in the stock.
This company is expected to post quarterly loss of $0.47 per share in its upcoming report, which represents a year-over-year change of +6%. Revenues are expected to be $19.21 million, up 69.1% 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 RxSight, Inc., 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 RXST 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 >>>>
RxSight, Inc. is a member of the Zacks Medical - Instruments industry. One other stock in the same industry, Silk Road Medical SILK, finished the last trading session 0.1% lower at $32.62. SILK has returned 8.2% over the past month.
For Silk Road Medical , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.39. This represents a change of +11.4% from what the company reported a year ago. Silk Road Medical currently has a Zacks Rank of #3 (Hold).
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