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iRhythm Technologies (IRTC) Moves 5.1% Higher: Will This Strength Last?

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iRhythm Technologies (IRTC - Free Report) shares rallied 5.1% in the last trading session to close at $115.62. 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 19.5% loss over the past four weeks.

iRhythm Technologies recorded a strong price increase before its second-quarter 2022 earnings release with the latest Zacks Consensus Estimate showing significant upward revision for its quarterly revenues compared to the year-ago reported number. The company is expected to release its fiscal first-quarter earnings on Aug 4, 2022. iRhythm Technologies held an investor presentation on Jun 16, where it reiterated its full-year revenue outlook and confirmed that CY 2023 process is currently underway, with proposed rule expected in July 2022. These developments raise optimism regarding the stock.

This company is expected to post quarterly loss of $0.94 per share in its upcoming report, which represents a year-over-year change of -59.3%. Revenues are expected to be $99.2 million, up 22.1% 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 iRhythm Technologies, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on IRTC 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 >>>>

iRhythm Technologies is a member of the Zacks Medical Info Systems industry. One other stock in the same industry, Nextgen Healthcare (NXGN - Free Report) , finished the last trading session 5.6% higher at $18.11. NXGN has returned -5.5% over the past month.

For Nextgen Healthcare, the consensus EPS estimate for the upcoming report has changed -12.1% over the past month to $0.19. This represents a change of -24% from what the company reported a year ago. Nextgen Healthcare currently has a Zacks Rank of #4 (Sell).


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