Strength Seen in iRhythm Technologies (IRTC): Can Its 27.6% Jump Turn into More Strength?
iRhythm Technologies (IRTC) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down...
iRhythm Technologies IRTC shares ended the last trading session 27.6% higher at $130.04. 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 13.2% gain over the past four weeks.
Irhythm scored a strong price rise following Novitas, a Medicare Administrative Contractor (MAC) updated reimbursement rates for CPT codes 93243 and 93247 for the Houston jurisdiction to $223 and $233, respectively. Irhythm expects this rate update to be beneficial for the company’s business.
This company is expected to post quarterly loss of $1.22 per share in its upcoming report, which represents a year-over-year change of -269.7%. Revenues are expected to be $77.73 million, down 1.4% 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 iRhythm Technologies, 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 IRTC 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 >>>>
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
iRhythm Technologies (IRTC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research