Stryker (SYK) Moves 4.2% Higher: Will This Strength Last?
Stryker (SYK) shares ended the last trading session 4.2% higher at $293.57. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.5% loss over the past four weeks.
The upside in Stryker shares can mostly be attributed to rally in medical-devices stocks following positive commentary on potential rise in demand for surgeries by UnitedHealth executives.
This medical device maker is expected to post quarterly earnings of $2.38 per share in its upcoming report, which represents a year-over-year change of +5.8%. Revenues are expected to be $4.82 billion, up 7.2% 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 Stryker, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SYK 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 >>>>
Stryker is part of the Zacks Medical - Products industry. OrganiGram (OGI), another stock in the same industry, closed the last trading session 5.8% lower at $0.41. OGI has returned -4.7% in the past month.
OrganiGram's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.01. Compared to the company's year-ago EPS, this represents a change of +66.7%. OrganiGram currently boasts a Zacks Rank of #4 (Sell).
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