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Tandem Diabetes Care, Inc. (TNDM) Stock Jumps 6.5%: Will It Continue to Soar?

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Tandem Diabetes Care, Inc. (TNDM - Free Report) shares ended the last trading session 6.5% higher at $123.83. 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 22.6% loss over the past four weeks.

According to multiple sources, Tandem Diabetes scored a strong price increase after Wells Fargo & Company upgraded the stock from an "equal weight" rating to an "overweight" rating. Going by a Jan 20 Seeking Alpha article, analysts at Wells Fargo see upside potential in outside the U.S. sales this year, given that 2022 is going to be the first full year that Tandem Diabetes’ Control IQ technology will be available in both France and Germany. Furthermore, a strong renewal cycle beginning in 2022 and potential device delays from the company’s competitors are likely to contribute to the sales upside. Tandem Diabetes plans to report its fourth quarter and full year 2021 results on Feb 22, 2022, after the market closes.

This company is expected to post quarterly earnings of $0.20 per share in its upcoming report, which represents a year-over-year change of -16.7%. Revenues are expected to be $197.97 million, up 17.8% 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 Tandem Diabetes Care, 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 TNDM 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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