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Penumbra PEN shares rallied 6.3% in the last trading session to close at $252.23. 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 1.5% loss over the past four weeks.
Penumbra scored a strong price increase driven by optimism surrounding Stryker's entry into the high-growth mechanical thrombectomy (“MT”) sector with the acquisition of Inari Medical, Inc. A notable competitor like Stryker implies greater focus and funding on the MT sector may result in further expansion and approval for businesses like Penumbra.
This medical device maker is expected to post quarterly earnings of $0.91 per share in its upcoming report, which represents a year-over-year change of +19.7%. Revenues are expected to be $312.19 million, up 9.7% 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 Penumbra, the consensus EPS estimate for the quarter has been revised 3.4% 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 PEN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). 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, IQVIA Holdings IQV, finished the last trading session 1.7% higher at $202.65. IQV has returned -3.5% over the past month.
IQVIA's consensus EPS estimate for the upcoming report has changed -0.9% over the past month to $3.11. Compared to the company's year-ago EPS, this represents a change of +9.5%. IQVIA currently boasts a Zacks Rank of #3 (Hold).
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Penumbra, Inc. (PEN) : Free Stock Analysis Report
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