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iRhythm Technologies (IRTC) Surges 4.2%: Is This an Indication of Further Gains?

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iRhythm Technologies (IRTC - Free Report) shares rallied 4.2% in the last trading session to close at $111.76. 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 4.2% loss over the past four weeks.

iRhythm Technologies scored a strong price rise, driven by optimism surrounding the company’s recent announcement of the results of three clinical research studies presented at The American College of Cardiology’s 71st Annual Scientific Session & Expo (ACC.22). The new clinical evidence validates the company’s Zio service as a viable solution for the early detection of silent atrial fibrillation. Additionally, the service is shown to positively impact hospital resources and also supports the need for monitoring post-TAVR (Transcatheter Aortic Valve Replacement) discharge in high-risk patient populations.

This company is expected to post quarterly loss of $0.99 per share in its upcoming report, which represents a year-over-year change of +23.3%. Revenues are expected to be $128.87 million, up 15.6% 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 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 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 part of the Zacks Medical Info Systems industry. GE HealthCare Technologies (GEHC - Free Report) , another stock in the same industry, closed the last trading session 0.6% higher at $88.47. GEHC has returned -5.1% in the past month.

For GE HealthCare, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.90. This represents a change of +5.9% from what the company reported a year ago. GE HealthCare currently has a Zacks Rank of #3 (Hold).

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