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CareCloud, Inc. (MTBC) Stock Jumps 15.5%: Will It Continue to Soar?

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CareCloud, Inc. (MTBC - Free Report) shares ended the last trading session 15.5% higher at $5.30. 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 10.5% loss over the past four weeks.

CareCloud scored strong price increase on optimism surrounding the company’s recent announcement of fourth quarter 2021 results. For fourth quarter 2021, the company reported quarterly loss of a cent, which surpassed the Zacks Consensus Estimate by 94.12%. The net revenue of $37.46 million also surpassed the Zacks Consensus Estimate by 4.21%. Market is also upbeat about the 2022 guidance for which the company projects full year revenue of around $152 to $155 million, which implies a compound annual growth rate from 2017 through 2022 of nearly 37%.

This company is expected to post quarterly loss of $0.27 per share in its upcoming report, which represents a year-over-year change of +25%. Revenues are expected to be $33.62 million, up 12.9% 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 CareCloud, Inc., the consensus EPS estimate for the quarter has been revised 26.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MTBC 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 >>>>

CareCloud, Inc. belongs to the Zacks Medical Info Systems industry. Another stock from the same industry, Syneos Health (SYNH - Free Report) , closed the last trading session 0.6% higher at $79.65. Over the past month, SYNH has returned -1.4%.

For Syneos Health, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.97. This represents a change of +22.8% from what the company reported a year ago. Syneos Health currently has a Zacks Rank of #3 (Hold).


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