Yahoo Finance Establishment Labs Holdings Inc. (ESTA) Stock Jumps 6.1%: Will It Continue to Soar?
Establishment Labs Holdings Inc. ESTA shares soared 6.1% in the last trading session to close at $71.84. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8.1% loss over the past four weeks.
Establishment Labs Holdings Inc. (ESTA) scored a strong price increase, driven by the optimism surrounding the company’s announcement of surpassing three million Motiva devices in market. Amid FDA’s ongoing IDE-clinical trial, the company’s new Sulàyöm Campus will act as a manufacturing unit, to support the growing demand for Motiva. Further, the market is also upbeat about the company’s full 2023 revenue guidance, expected to grow around 24%-30% compared to prior year.
This company is expected to post quarterly loss of $0.68 per share in its upcoming report, which represents a year-over-year change of -183.3%. Revenues are expected to be $45.25 million, up 17.7% 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 Establishment Labs Holdings 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 ESTA 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 >>>>
Establishment Labs Holdings Inc. is part of the Zacks Medical Services industry. Elevance Health ELV, another stock in the same industry, closed the last trading session 3.6% higher at $476.49. ELV has returned -2.2% in the past month.
Elevance Health's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $5.21. Compared to the company's year-ago EPS, this represents a change of -36.9%. Elevance Health currently boasts a Zacks Rank of #2 (Buy).
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