TCMD

Oversold Stocks in Health Care: The health care sector has several oversold stocks, such as Radnet Inc, Tactile Systems Technology Inc, and ProKidney Corp, which are considered undervalued based on their low Relative Strength Index (RSI) values, indicating potential buying opportunities.

Recent Stock Performance: Despite positive earnings reports and upgrades from analysts, these companies have experienced significant stock price declines over the past month, with Radnet's RSI at 24.8, Tactile Systems at 22.5, and ProKidney at 25.9, suggesting they may be oversold.

Company Announcement: Tactile Systems Technology, Inc. will participate in the Oppenheimer 35th Annual Healthcare MedTech & Services Conference with a virtual presentation scheduled for March 18, 2025, at 12:00 p.m. Eastern Time.

About the Company: Tactile Medical focuses on developing at-home therapies for chronic conditions like lymphedema and chronic pulmonary disease, aiming to improve patient care and quality of life while reducing healthcare costs.

Tactile Systems Technology Inc Performance: Tactile Systems Technology Inc (TCMD) shares have reached an oversold level with an RSI of 27.9, indicating potential buying opportunities as the stock trades at $14.94, compared to its 52-week high of $21.10 and low of $11.12.

Market Comparison: The current RSI of TCMD is significantly lower than that of the S&P 500 ETF (SPY), which stands at 54.3, suggesting that TCMD may be experiencing a phase of heavy selling that could soon stabilize.

Quarterly Earnings Performance: Tactile Systems Technology (TCMD) reported quarterly earnings of $0.40 per share, exceeding estimates and showing a year-over-year increase, while revenues also surpassed expectations at $85.59 million.

Future Outlook and Industry Context: The company's stock is currently rated as a Zacks Rank #3 (Hold), indicating expected performance in line with the market, and investors are advised to monitor earnings estimate revisions for future guidance.

DoorDash Options Trading: DoorDash Inc (DASH) experienced significant options trading with 16,738 contracts, particularly for the $190 strike call option expiring December 20, 2024, which saw 7,369 contracts traded.

Tactile Systems Technology Options Trading: Tactile Systems Technology Inc (TCMD) also had notable options activity with 1,559 contracts traded, focusing on the $22.50 strike call option expiring December 20, 2024, where 633 contracts were exchanged.

Tactile Systems Technology (TCMD): Recognized as a "Bull of the Day" by Zacks Equity Research, TCMD has shown strong earnings performance with a 95% average positive surprise over the last four quarters and is expected to grow sales significantly in the coming years despite recent margin declines.

Ares Management (ARES) and Enphase Energy (ENPH): ARES is labeled as a "Bear of the Day" due to declining earnings estimates, while ENPH faces challenges from poor demand and high debt, leading to significant stock underperformance; however, it has introduced an AI-powered DIY permitting feature aimed at improving operational efficiency.

Recent Political and Economic Developments: Donald Trump has been re-elected as the 47th president of the United States, while the Federal Reserve has cut the benchmark lending rate by 25 basis points, which is expected to benefit small businesses struggling with demand and inflation post-COVID-19.

Recommended Small-Cap Stocks: Five small-cap stocks with strong growth potential and favorable Zacks Rank are highlighted: Private Bancorp of America, MediaAlpha, Tactile Systems Technology, Travelzoo, and South Atlantic Bancshares, all showing positive earnings revisions and significant upside potential.

Earnings Report Overview: Tactile Systems Technology, Inc. reported quarterly earnings with revenue slightly below expectations at US$73m, but earnings per share exceeded forecasts by 18%, reaching US$0.21. Analysts have adjusted their revenue and earnings estimates for 2025, projecting a 13% revenue increase to US$322.2m and a 34% rise in earnings per share to US$0.86.

Analyst Sentiment and Future Outlook: Following the earnings report, analysts raised their price target for the stock by 16% to US$24.00, reflecting increased optimism about the company's performance. Despite maintaining a growth rate in line with the industry, there are two warning signs noted for potential risks associated with the company.

U.S. Stock Market Update: U.S. stock futures are slightly higher, with Dow futures up about 0.1%, while several companies, including Celanese Corporation and Navitas Semiconductor, reported disappointing earnings leading to significant pre-market declines in their stock prices.

Notable Stock Declines: Celanese shares dropped 15.8% after missing earnings estimates and announcing a dividend cut; other companies like JELD-WEN and Lattice Semiconductor also saw substantial declines following weak quarterly results and lowered forecasts.

Palantir Technologies Performance: Palantir Technologies Inc. shares rose 12.9% in pre-market trading after reporting a 5% year-over-year revenue increase to $3.07 billion and an adjusted EPS of 77 cents, surpassing expectations.

Market Movements: Several stocks saw significant pre-market gains, including Simpple Ltd (+69.5%) and Bionomics Limited (+67.6%), while others like Marqeta, Inc. (-38.8%) and Verrica Pharmaceuticals Inc. (-31.4%) experienced sharp declines following disappointing quarterly results.

Healthcare Technology Transformation: The healthcare technology sector is rapidly evolving with the integration of AI, telemedicine, and digital platforms, leading to more efficient and patient-centric care solutions. Companies like Teladoc Health, WELL Health Technologies, and Omnicell are emerging as leaders by innovating their services and expanding their capabilities.

Growth Opportunities in Healthcare: As demand for advanced healthcare solutions increases, companies such as Evolent Health and CareDx are positioning themselves for growth by focusing on value-based care and precision diagnostics, respectively. The ongoing advancements in this sector are expected to enhance patient outcomes and accessibility in the coming years.

Importance of Earnings Reports: Quarterly financial reports are crucial for investors as they reveal company performance and future expectations, with earnings surprises being particularly impactful for stock prices.

Zacks Earnings ESP Tool: The Zacks Expected Surprise Prediction (ESP) tool helps identify stocks likely to exceed earnings estimates by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, resulting in higher average annual returns for investors.

Positive Study Results: Tactile Systems Technology, Inc. announced positive health-related quality of life outcomes from a study on the Flexitouch device for veterans with lower extremity lymphedema, published in the Journal of Vascular Surgery.

Secondary Outcomes Assessed: The 52-week study evaluated additional measures including limb circumference, cellulitis events, skin quality, and therapy compliance.

Clinical Study Announcement: Tactile Systems Technology, Inc. announced a significant clinical study published in the Journal of Vascular Surgery, assessing the effectiveness of their Flexitouch advanced pneumatic compression device for treating lower extremity lymphedema in Veterans, marking it as the largest peer-reviewed trial of its kind in the U.S.

Study Results and Impact: The 52-week study showed notable improvements in health-related quality of life, with reductions in limb girth, cellulitis events, and skin hyperpigmentation, alongside high patient compliance rates, indicating strong adherence to therapy and positive outcomes for Veterans.

Approval and Launch of Nimbl: Tactile Systems Technology, Inc. announced that the PDAC contractor for CMS has approved HCPCS code E0651 for billing their new pneumatic compression platform, Nimbl, which will be commercially available in the U.S. soon after receiving FDA clearance.

Innovative Features of Nimbl: The Nimbl device is designed for treating lymphedema and chronic venous insufficiency, featuring significant reductions in size and weight for portability, along with connectivity to a digital application for tracking therapy progress.

Financial Performance: Tactile Systems Technology reported a revenue of US$73.2 million for Q2 2024, a 7.1% increase from the previous year, with net income rising to US$4.3 million and earnings per share (EPS) at US$0.18, surpassing analyst expectations by 57%.

Future Outlook: The company forecasts an average revenue growth of 10.0% annually over the next three years, outpacing the Medical Equipment industry's projected growth of 8.2% in the US, although there is one warning sign identified for potential risks.

Q2 2024 Financial Performance: Tactile Systems Technology Inc reported a total revenue of $73.2 million for Q2 2024, marking a 7% year-over-year growth, with significant contributions from lymphedema and airway clearance product lines. The company also experienced a notable increase in adjusted EBITDA by over 49% year-over-year.

Challenges and Strategic Initiatives: The company is facing increased documentation requirements from Medicare that have impacted order processing times, leading to a revised revenue guidance for 2024. To address these challenges, Tactile is investing in technology solutions like an e-prescribing tool and focusing on product innovation, including the upcoming launch of their next-generation lymphedema therapy platform, Nimbl.

Earnings Performance: Tactile Systems Technology (TCMD) reported quarterly earnings of $0.20 per share, exceeding expectations and marking a significant increase from $0.05 per share a year ago, while revenues also surpassed estimates at $73.22 million.

Market Outlook: Despite the positive earnings report, TCMD shares have underperformed compared to the S&P 500 this year, and the stock holds a Zacks Rank #3 (Hold), indicating it is expected to perform in line with the market moving forward.

Tactile Systems Technology Financial Performance:

• Reported a quarterly loss of $0.05 per share, beating estimates.
• Earnings surprise of 54.55% and surpassed consensus EPS estimates four times in the last year.
• Posted revenues of $61.09 million, exceeding expectations by 3.36%.
• Stock's performance has been underwhelming compared to the market.

Future Outlook for Tactile Systems Technology:

• Uncertainty about the stock's future performance.
• Investors advised to consider earnings outlook and estimate revisions.
• Current Zacks Rank #3 (Hold) suggests expected market performance.
• Estimates for upcoming quarters and fiscal year are $0.10 and $0.56 respectively.

Industry Impact on Stock Performance:

• Industry rank for Medical - Instruments is in the bottom 41%.
• Top Zacks-ranked industries outperform the bottom ones significantly.

Veracyte Financial Expectations:

• Veracyte yet to report results, expected on May 7.
• Anticipated quarterly loss of $0.19 per share with revenue growth.
• Consensus EPS estimate unchanged over the last 30 days.

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