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Bull Of The Day: Tactile Systems Technology (TCMD)

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Tactile Systems Technology (TCMD - Free Report) is a Zacks Rank #1 (Strong Buy) that has an A for Value and an A for Growth.  This medical instruments company develops devices for the treatment of chronic diseases at home.  Let’s explore more about this company in this Bull of The Day article.


Tactile Systems Technology, Inc. is a medical technology company which develops medical devices for the treatment of chronic diseases at home. The company's product pipeline consists of Flexitouch System(R), the Entre System and the ACTitouch System (R). Tactile Systems Technology, Inc. is headquartered in Minneapolis, Minnesota.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For Tactile Systems Technology, I see four straight beats of the Zacks Consensus Estimate over the last year.  The average positive earnings surprise over the last year works out to be a positive 769%.

The average is skewed by the September 2023 quarter in which the company reported a gain of 85 cents when the estimate was calling for just 3 cents.  That 2,733% beat dwarfs the other positive surprises of 192%, 171% and 88%. 

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about. 

The consensus estimate for the current quarter has held still at a loss of $0.11.

Next quarter has seen the consensus move from $0.09 to $0.10.

The full fiscal year 2024 estimate has moved from $0.42 to $0.56

Next year has moved from $0.80 to $0.88.


The forward PE multiple for TCMD is 25.5x which is just around the industry average. The price to book stands at 1.8x, which means the value oriented will be interested in this stock as they tend to place more emphasis on that metric. The price to sales multiple comes in at 1.25x.  Over the last two quarters, operating margins have increased from 9.7% to 10.7%. 

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