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Tempus (TEM) Stock Jumps 13.6%: Will It Continue to Soar?

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Tempus AI (TEM - Free Report) shares soared 13.6% in the last trading session to close at $88.78. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.3% gain over the past four weeks.

Tempus AI recorded a strong price rise on investors’ optimism following the Food and Drug Administration (FDA) approval for its updated Tempus Pixel, an AI-powered cardiac imaging platform. The update allows the generation of T1 and T2 inline maps, further enhancing the device’s capabilities for cardiac MR image analysis.

This health care technology company is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +36%. Revenues are expected to be $326.88 million, up 80.7% 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 Tempus, 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 TEM 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 >>>>

Tempus is a member of the Zacks Medical Info Systems industry. One other stock in the same industry, Outset Medical, Inc. (OM - Free Report) , finished the last trading session 4.5% higher at $14.15. OM has returned 2.5% over the past month.

For Outset Medical, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.64. This represents a change of +89.1% from what the company reported a year ago. Outset Medical currently has a Zacks Rank of #2 (Buy).


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