Strength Seen in Cutera (CUTR): Can Its 8.5% Jump Turn into More Strength?
Cutera CUTR shares ended the last trading session 8.5% higher at $28.24. 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 7.9% loss over the past four weeks.
The increase in share price followed Cutera’s offering of 2.25% convertible senior notes due 2026 worth $125 million. The company estimates that the net proceeds from the offering will be approximately $120.7 million.
Cutera’s expanding footprint in the laser and energy-based aesthetics systems industry is expected to drive top-line growth. The company’s strong portfolio is expected to drive Skincare revenues.
Price and Consensus
This maker of laser skin treatments is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +73.3%. Revenues are expected to be $39.5 million, up 22.5% 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 Cutera, the consensus EPS estimate for the quarter has been revised 18.8% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CUTR 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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