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Establishment Labs (ESTA) Surges 7.4%: Is This an Indication of Further Gains?

Establishment Labs Holdings Inc. ESTA shares rallied 7.4% in the last trading session to close at $44.54. 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 22.6% loss over the past four weeks.

Establishment Labs scored a strong price increase driven by investors’ optimism, following its recent presentation at two investor conferences. In the first quarter of 2024, the company’s revenues topped the Zacks Consensus Estimate by 4.7%. Besides, it took significant measures to reduce its expense base, resulting in an improved adjusted EBITDA of a loss of less than $4 million.

This company is expected to post quarterly loss of $0.52 per share in its upcoming report, which represents a year-over-year change of +20%. Revenues are expected to be $43.32 million, down 10.8% 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.

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For Establishment Labs, 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 ESTA 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 >>>>

Establishment Labs is part of the Zacks Medical Services industry. Sotera Health Company SHC, another stock in the same industry, closed the last trading session 0.9% lower at $11.90. SHC has returned 7.2% in the past month.

For Sotera Health , the consensus EPS estimate for the upcoming report has changed +2.3% over the past month to $0.17. This represents a change of -19.1% from what the company reported a year ago. Sotera Health currently has a Zacks Rank of #4 (Sell).

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Establishment Labs Holdings Inc. (ESTA) : Free Stock Analysis Report

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