Ekso Bionics (EKSO) Surges 9.4%: Is This an Indication of Further Gains?

Zacks Equity Research
·2-min read

Ekso Bionics (EKSO) shares ended the last trading session 9.4% higher at $6.52. 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 10.8% loss over the past four weeks.

Ekso Bionics recorded a strong price rise on investors’ optimism surrounding an upbeat artificial organ and bionics market report (released on Apr 8). The report (published in Research and Markets) says, the global artificial organ and bionics market is estimated to grow at a CAGR of 8.4% during the forecasted period of 2020 to 2025.

Price and Consensus

Price Consensus Chart for EKSO
Price Consensus Chart for EKSO

This robotic exoskeleton company is expected to post quarterly loss of $0.24 per share in its upcoming report, which represents a year-over-year change of +45.5%. Revenues are expected to be $3 million, up 104.1% 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 Ekso Bionics, 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 EKSO 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 >>>>

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