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Omnicell (OMCL) Soars 3.4%: Is Further Upside Left in the Stock?

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Omnicell (OMCL - Free Report) shares rallied 3.4% in the last trading session to close at $160.77. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.8% loss over the past four weeks.

Omnicell scored a strong price rise following the claim of an Insider Monkey article that the investment management firm Clearbridge Investments, Llc in its Q2 2021 investor letter, favorably mentioned about Omnicell. As per the report, Clearbridge Investment’s other new buys included Omnicell. Clearbridge mentioned Omnicell as a leading participant in the automation of patient care through management of medication distribution across various points in the healthcare system, from operating rooms to nursing homes and health system pharmacies.

This Omnicell Inc. Is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of +51.7%. Revenues are expected to be $283.82 million, up 32.8% 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 Omnicell, 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 OMCL going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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