Back to top

Image: Bigstock

Penumbra (PEN) Moves 11.8% Higher: Will This Strength Last?

Read MoreHide Full Article

Penumbra (PEN - Free Report) shares soared 11.8% in the last trading session to close at $350.49. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.4% gain over the past four weeks.

Penumbra recorded a strong price rise on investors’ optimism surrounding the company’s announcement of preliminary financial results for the fourth quarter and full year 2025. Fourth quarter 2025 revenue is expected between $383.0 million to $384.8 million, which represents growth of approximately 21.4% to 22.0% year over year. Full year revenue is expected to be between $1,401.3 million and $1,403.1 million, which represents growth of approximately 17.3% to 17.5% year over year. The market is also showing strong optimism following Boston Scientific’s agreement to acquire Penumbra at $374 per share. 

This medical device maker is expected to post quarterly earnings of $1.12 per share in its upcoming report, which represents a year-over-year change of +15.5%. Revenues are expected to be $362.5 million, up 14.9% 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 Penumbra, 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 PEN 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 >>>>

Penumbra is a member of the Zacks Medical - Instruments industry. One other stock in the same industry, Masimo (MASI - Free Report) , finished the last trading session 1.1% higher at $139.87. MASI has returned 2% over the past month.

Masimo's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.4. Compared to the company's year-ago EPS, this represents a change of -22.2%. Masimo currently boasts a Zacks Rank of #4 (Sell).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Masimo Corporation (MASI) - free report >>

Penumbra, Inc. (PEN) - free report >>

Published in