Is Further Upside Left in the Stock?

This story originally appeared on Zacks

Shares of Vocera Communications (VCRA) ended the last trading session 26.6% higher at $79.17. The jump came in impressive volume with an above average number of shares traded in the session. This compares to the stock’s 4.5% gain over the past four weeks.

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VCRA stock rose after it was announced that the company will be acquired by medical device maker Stryker. The entities have signed a definitive merger agreement, in which Stryker will pay $79.25 per share in cash, which represents a total equity value of approximately $2.97 billion.

Vocera’s cutting edge clinical device and workflow solutions are a strategic fit for Stryker’s advanced offerings for digital healthcare. As a result, the synergies will advance the medical technology company’s focus beyond core MedTech while enhancing the lives of caregivers and patients. The deal has been approved by both parties and is expected to expire in the first quarter of 2022.

The hospital mobile communications company is expected to report quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -39.3%. Revenue is expected to be $63.55 million, an increase of 12.3% over the prior year quarter.

Earnings and revenue growth forecasts certainly give a good sense of the stock’s potential strength, but empirical research shows that trends in earnings estimate revisions are closely related to near-term stock price movements.

For Vocera, its consolidated earnings per share estimate for the quarter has been unchanged for the past 30 days. Usually the stock price does not continue to rise in the absence of any trend in the earnings estimate revisions. So, be sure to keep an eye on the VCRA going forward to see if this latest leap could turn into more power down the road.

The stock currently has a Zacks rating of 1 (strong buy). You can see the full list of Zacks #1 ranked stocks (strong buy) here >>>>

Zacks Names “Single Best Pick to Double”

Out of thousands of stocks, 5 experts from Zacks each chose their favorite to skyrocket +100% or more in the coming months. Of these five, Research Director Shiraz Mian chooses someone with the most explosive positive side of all.

In the words of one investor, “Cure and prevent hundreds of diseases… what should this market be worth?” This company can rival or outperform other recent Zacks stocks that are set to double like Boston Beer which is up +143.0% in just over 9 months and NVIDIA which is booming +175.9% in one year.

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Vocera Communications, Inc. (VCRA): Free Stock Analysis Report

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