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CareCloud, Inc. (MTBC) Surges 11%: Is This an Indication of Further Gains?

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CareCloud, Inc. shares soared 11% in the last trading session to close at $5.26. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.3% gain over the past four weeks.

Optimism over the company’s recent announcement that it has been named as a Best Medical Billing Service of 2022 by Business.com., is driving the share price higher. As per the announcement, CareCloud was named the Best Flexible RCM Service for its comprehensive, end-to-end revenue cycle management solutions. This announcement was made after TechRadar named CareCloud a Best Billing Service of 2022 in July 2022.

This company is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of -26.7%. Revenues are expected to be $33.76 million, down 11.8% 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 CareCloud, 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 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, Inspire Medical Systems (INSP - Free Report) , closed the last trading session 1.3% higher at $210.92. Over the past month, INSP has returned -5.4%.

Inspire's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.75. Compared to the company's year-ago EPS, this represents a change of -97.4%. Inspire currently boasts a Zacks Rank of #4 (Sell).


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