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Tactile Systems Technology (TCMD) Moves 6.6% Higher: Will This Strength Last?

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Tactile Systems Technology (TCMD - Free Report) shares rallied 6.6% in the last trading session to close at $8.04. 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 10.2% loss over the past four weeks.

Tactile Medical scored a strong price rise benefitting from a solid boost in the U.S. equity market. At the close on Sep 28, 2022, the Dow Jones Industrial Average was up 1.88%. The S&P 500 index as well as the NASDAQ Composite index climbed 1.97% and 2.05% respectively.

Meanwhile, the company is expected to report its third-quarter 2022 financial results on Nov 7. We expect the company to report a revenue beat of 14.9%.

This medical device maker is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of -25%. Revenues are expected to be $60.2 million, up 14.7% 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 Tactile Systems Technology, 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 TCMD 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 >>>>

Tactile Systems Technology is part of the Zacks Medical - Instruments industry. Teleflex (TFX - Free Report) , another stock in the same industry, closed the last trading session 3% higher at $207.96. TFX has returned -9.4% in the past month.

For Teleflex, the consensus EPS estimate for the upcoming report has changed -0.5% over the past month to $3.10. This represents a change of -11.7% from what the company reported a year ago. Teleflex currently has a Zacks Rank of #4 (Sell).


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