Outset Medical, Inc. OM shares soared 15% in the last trading session to close at $19.97. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.2% loss over the past four weeks.
Outset Medical recorded a strong price rise on investors’ optimism surrounding the company’s expanding installed base and recurring revenue potential, underpinned by the widespread adoption and utilization of its Tablo dialysis system across acute and home settings. Backed by this momentum, last month, the company reported robust financial results for the first quarter of 2025.
This company is expected to post quarterly loss of $1.76 per share in its upcoming report, which represents a year-over-year change of +75%. Revenues are expected to be $29.77 million, up 8.7% 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 Outset Medical, 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 OM 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 >>>>
Outset Medical is a member of the Zacks Medical Info Systems industry. One other stock in the same industry, Senseonics Holdings SENS, finished the last trading session 1.2% higher at $0.5. SENS has returned -1.7% over the past month.
Senseonics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.02. Compared to the company's year-ago EPS, this represents a change of +33.3%. Senseonics currently boasts a Zacks Rank of #2 (Buy).
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Outset Medical, Inc. (OM): Free Stock Analysis Report Senseonics Holdings, Inc. (SENS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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