Hinge Health Inc. HNGE shares ended the last trading session 6.5% higher at $75.14. 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 31.7% gain over the past four weeks.
Hinge Health scored a strong price increase on investors’ optimism surrounding the company’s strong first quarter financial results. It generated $182 million in revenue in the first quarter with 47% year-over-year growth, well ahead of expectations. The growth is driven by the strength of a platform that automates care delivery, improves member outcomes and lowers costs.
This company is expected to post quarterly earnings of $0.58 per share in its upcoming report, which represents a year-over-year change of -13.4%. Revenues are expected to be $198.61 million, up 42.8% 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.
For Hinge Health Inc., the consensus EPS estimate for the quarter has been revised 14.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HNGE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Hinge Health Inc. is a member of the Zacks Medical Info Systems industry. One other stock in the same industry, CareCloud, Inc. CCLD, finished the last trading session 5% lower at $2.08. CCLD has returned -2.7% over the past month.
CareCloud's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.07. Compared to the company's year-ago EPS, this represents no change. CareCloud currently boasts a Zacks Rank of #4 (Sell).
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Hinge Health Inc. (HNGE): Free Stock Analysis Report
CareCloud, Inc. (CCLD): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).