American Well Corporation AMWL shares ended the last trading session 9.4% higher at $9.19. 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 11.2% loss over the past four weeks.
American Well advanced amid continued investor optimism after its recent quarterly results highlighted improving margins and cost discipline.
This company is expected to post quarterly loss of $0.60 per share in its upcoming report, which represents a year-over-year change of +51.6%. Revenues are expected to be $50.13 million, down 29.3% 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 American Well, 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 AMWL 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 >>>>
American Well is part of the Zacks Medical Info Systems industry. 10x Genomics TXG, another stock in the same industry, closed the last trading session 2.9% higher at $36.75. TXG has returned 27.7% in the past month.
10x Genomics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.23. Compared to the company's year-ago EPS, this represents a change of -182.1%. 10x Genomics currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).