SeaSpine (SPNE) Moves 5.8% Higher: Will This Strength Last?


SeaSpine Holdings


SPNE

shares rallied 5.8% in the last trading session to close at $10.92. 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 7.4% loss over the past four weeks.

SeaSpine Holdings recorded a strong price increase on investors’ optimism surrounding the company’s upcoming first quarter 2022 results, which is set to release on May 3, after the closing bell. In the last-reported fourth quarter 2021, the company recorded loss of 52 cents per share, much wider than the Zacks Consensus Estimate of a loss of 36 cents per share. The company’s revenues of $55.6 million for the fourth quarter surpassed the Zacks Consensus Estimate by 1.3%. SeaSpine Holdings expects to report first quarter revenues in the band of $48.5-$49.5 million, reflecting growth of nearly 16%-18% year over year. The Zacks Consensus Estimates for the company’s earnings and revenues also suggest strong year over year growth.

This medical technology company is expected to post quarterly loss of $0.35 per share in its upcoming report, which represents a year-over-year change of +23.9%. Revenues are expected to be $48.92 million, up 16.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For SeaSpine, 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 SPNE 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 >>>>

SeaSpine belongs to the Zacks Medical – Instruments industry. Another stock from the same industry,

Masimo


MASI

, closed the last trading session 4.8% higher at $136.33. Over the past month, MASI has returned -17.8%.

Masimo’s consensus EPS estimate for the upcoming report has changed +4.1% over the past month to $0.92. Compared to the company’s year-ago EPS, this represents a change of +2.2%. Masimo currently boasts a Zacks Rank of #4 (Sell).


Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.


Free: See Our Top Stock and 4 Runners Up >>

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


To read this article on Zacks.com click here.


Zacks Investment Research