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Tandem Diabetes Care, Inc. (TNDM) Soars 6%: Is Further Upside Left in the Stock?

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Tandem Diabetes Care, Inc. (TNDM - Free Report) shares soared 6% in the last trading session to close at $56.41. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 27.1% loss over the past four weeks.

Tandem Diabetes recorded a strong price increase following the appointments of Myoung Cha and Joao Malagueira as independent members of its board of directors effective Jun 15, 2022. Management believes that Mr. Joao’s extensive international experience will bring great values to the company as it continues to expand its global reach. Further, management also believes that Mr. Cha’s strategic experience in leading-edge consumer technology at large companies will be vital as Tandem Diabetes advances its product pipeline. Also, a better-than-expected second-quarter 2022 revenue performance raises optimism.

This company is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $205.16 million, up 19.2% 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 been revised 30% 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 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 >>>>

Tandem Diabetes Care, Inc. belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Avanos Medical (AVNS - Free Report) , closed the last trading session 2.4% higher at $25.47. Over the past month, AVNS has returned -11.1%.

For Avanos Medical, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.38. This represents a change of +81% from what the company reported a year ago. Avanos Medical currently has a Zacks Rank of #3 (Hold).


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