Tactile Systems Technology (TCMD) Surges 5.8%: Is This an Indication of Further Gains?
Tactile Systems Technology TCMD shares ended the last trading session 5.8% higher at $12.39. 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 13% loss over the past four weeks.
Tactile Systems Technology recorded a strong price rise on investors’ optimism surrounding its impending fiscal third-quarter 2023 financial results, which is slated to release on Nov 06, post the closing bell.
The Zacks Consensus Estimate for the third quarter revenue suggests a growth of 6.3%. Earlier in the second quarter, the company delivered stronger-than-expected performance in the lymphedema product line and also raised the full year revenue growth guidance to nearly 11%-13% (earlier 10%-11.5%). This might have boosted confidence in the stock.
This medical device maker is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -70%. Revenues are expected to be $69.38 million, up 6.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Tactile Systems Technology, 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 TCMD going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Tactile Systems Technology is part of the Zacks Medical - Instruments industry. Waters WAT, another stock in the same industry, closed the last trading session 1.9% higher at $245.41. WAT has returned -10.1% in the past month.
Waters' consensus EPS estimate for the upcoming report has changed -1.1% over the past month to $2.56. Compared to the company's year-ago EPS, this represents a change of -3%. Waters currently boasts a Zacks Rank of #4 (Sell).
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Tactile Systems Technology, Inc. (TCMD) : Free Stock Analysis Report
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