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Strength Seen in Assure Holdings Corp. (IONM): Can Its 7.3% Jump Turn into More Strength?

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Assure Holdings Corp. (IONM - Free Report) shares soared 7.3% in the last trading session to close at $6. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 24.2% gain over the past four weeks.

The stock scored a strong price increase driven by the optimism surrounding the company’s upcoming fourth quarter and full year 2021 earnings release (schedules on Mar 14). The current Zacks Consensus Estimate for both Q4 revenues and EPS denote strong year-over-year growth. The market is upbeat about the company’s January 2022 update, wherein the company reported its highest number of managed cases in 2021 which grew more than 75%. Management also noted that it continues to expect to grow managed case volume to more than 25,000 in 2022 despite the lingering impact of COVID-19, representing a potential increase of more than 40%.

Further, Assure also noted that its remote neurology business, which launched in 2021, performed more than 2,100 remote neurology managed cases during the year. Management expects its remote neurology platform to be a key driver of incremental revenue and margin in 2022.

This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents a year-over-year change of +60%. Revenues are expected to be $8.9 million, up 49.3% 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 Assure Holdings Corp., 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 IONM 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 >>>>

Assure Holdings Corp. is part of the Zacks Medical Services industry. CoDiagnostics, Inc. (CODX - Free Report) , another stock in the same industry, closed the last trading session 4.3% higher at $5.64. CODX has returned -21.9% in the past month.

CoDiagnostics, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.14. Compared to the company's year-ago EPS, this represents a change of -67.4%. CoDiagnostics, Inc. currently boasts a Zacks Rank of #3 (Hold).

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