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LivaNova (LIVN) Soars 12.5%: Is Further Upside Left in the Stock?

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LivaNova (LIVN - Free Report) shares ended the last trading session 12.5% higher at $56.63. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.3% loss over the past four weeks.

LivaNova scored a strong price increase, on investors’ optimism driven by the company’s recent announcement of a positive predictive outcome in its OSPREY clinical study for moderate to severe obstructive sleep apnea. Enrollment in the OSPREY trial is also expected to conclude earlier than anticipated, indicating a greater than 97.5% probability of successfully meeting its primary endpoint.

This medical technology company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +9.3%. Revenues are expected to be $277.03 million, up 5.2% 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 LivaNova, the consensus EPS estimate for the quarter has been revised 17.5% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on LIVN 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 >>>>

LivaNova belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Waters (WAT - Free Report) , closed the last trading session 0.2% lower at $348.36. Over the past month, WAT has returned 7.7%.

Waters' consensus EPS estimate for the upcoming report has changed +0.2% over the past month to $2.09. Compared to the company's year-ago EPS, this represents a change of -16.1%. Waters currently boasts a Zacks Rank of #3 (Hold).


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