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Icad (ICAD) Soars 8.5%: Is Further Upside Left in the Stock?

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Icad (ICAD - Free Report) shares ended the last trading session 8.5% higher at $20.39. 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 12% gain over the past four weeks.

The move came after the company announced pricing of approximately $22 million public offering of common stocks on Mar 3. The market is also staying upbeat following the company’s better-than-expected fourth-quarter 2020 earnings announcement on Feb 24. Reported revenues were 30.6% ahead of the Zacks Consensus Estimate. The adjusted loss per share of 6 cents was narrower than the consensus mark by 2 cents.

Price and Consensus

Price Consensus Chart for Icad

This imaging and early cancer detection company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +55%. Revenues are expected to be $7.9 million, up 20.6% 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 Icad, the consensus EPS estimate for the quarter has been revised 16.7% 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 ICAD 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 >>>>


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