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Itamar Medical Ltd. Sponsored ADR (ITMR) Moves 6.5% Higher: Will This Strength Last?

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Itamar Medical Ltd. Sponsored ADR shares soared 6.5% in the last trading session to close at $21.76. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.6% loss over the past four weeks.

Itamar Medical Ltd. Sponsored ADR recorded a strong price increase driven by its encouraging first-quarter 2021 results, with revenues surpassing Zacks Consensus Estimate. Robust sales of WatchPAT and an encouraging full year 2021 revenue guidance auger well for the stock. The company’s recent confirmation of witnessing a continued fast recovery from the pandemic-led slowdown in the United States and recording high volumes of HSAT tests on a year-over-year basis raise optimism.

Price and Consensus

Price Consensus Chart for ITMR

This company is expected to post quarterly loss of $0.20 per share in its upcoming report, which represents a year-over-year change of -17.7%. Revenues are expected to be $12.58 million, up 41.5% 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 Itamar Medical Ltd. Sponsored ADR, 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 ITMR 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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