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Strength Seen in RadNet (RDNT): Can Its 5.4% Jump Turn into More Strength?

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RadNet (RDNT - Free Report) shares ended the last trading session 5.4% higher at $36.74. 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 1.3% gain over the past four weeks.

RadNet 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 14 cents per share, reflecting a projected surge of 187.5% year over year. The metric for the second quarter revenues is currently pegged at $326.8 million, indicating an improvement of 71.5% from the year-ago reported figure. The company is expected to release its second-quarter earnings on Aug 9, 2021.

This operator of medical diagnostic imaging centers is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +187.5%. Revenues are expected to be $326.78 million, up 71.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For RadNet, 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 RDNT going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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