Back to top

Image: Bigstock

Avanos Medical (AVNS) Soars 7.2%: Is Further Upside Left in the Stock?

Read MoreHide Full Article

Avanos Medical (AVNS - Free Report) shares ended the last trading session 7.2% higher at $16.95. 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 0.7% loss over the past four weeks.

The recent surge in Avanos Medical (AVNS - Free Report) shares can be attributed to growing market optimism surrounding the company’s strategic positioning in the medical device sector. Avanos has demonstrated impressive revenue growth and consistent profitability, fostering investor confidence in its long-term potential. The company’s decent Q3 results, driven by increased demand for its advanced medical solutions, have further boosted market sentiment. Additionally, Avanos’ ongoing investments in product innovation and its expanding portfolio of pain management and chronic care solutions position it well for sustained growth. As the healthcare sector continues to prioritize innovative and cost-effective solutions, investors are optimistic about Avanos’ ability to capture market share and drive future earnings growth, fueling the stock’s upward momentum.

This medical technology company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +11.1%. Revenues are expected to be $177.72 million, up 2.6% 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 Avanos 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 AVNS 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 >>>>

Avanos Medical is a member of the Zacks Medical - Instruments industry. One other stock in the same industry, Alcon (ALC - Free Report) , finished the last trading session 2.7% higher at $91.35. ALC has returned 3.9% over the past month.

Alcon's consensus EPS estimate for the upcoming report has changed -0.4% over the past month to $0.70. Compared to the company's year-ago EPS, this represents no change. Alcon currently boasts a Zacks Rank of #3 (Hold).


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Alcon (ALC) - free report >>

AVANOS MEDICAL, INC. (AVNS) - free report >>

Published in