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Semler Scientific Inc. (SMLR) Soars 4.2%: Is Further Upside Left in the Stock?

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Semler Scientific Inc. (SMLR - Free Report) shares soared 4.2% in the last trading session to close at $122.90. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 7.3% gain over the past four weeks.

Semler Scientific recorded a price surge before its second-quarter 2021 earnings release with the latest Zacks Consensus Estimate showing significant upward revisions compared to the year-ago reported number. The Zacks Consensus Estimate for the second-quarter earnings is pegged at $2.60 per share, reflecting a projected surge of 49.4% year over year. The metric for the second quarter revenues is currently pegged at $60.7 million, indicating an improvement of 57.1% from the year-ago reported figure. The company is expected to release its second-quarter earnings on Aug 2, 2021.

This company is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +369.2%. Revenues are expected to be $14.53 million, up 128.2% 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 Semler Scientific 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 SMLR 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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