The USA listed company saw a recent price trade of $3.78 and 46,520,340 shares have traded hands in the session. There are 20.36M shares which are traded as an average over the last three months period. Investors might want to bet on TransEnterix (TRXC), as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates — one of the most powerful forces impacting stock prices.
A company’s changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate — the consensus measure of EPS estimates from the sell-side analysts covering the stock — for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
Therefore, the Zacks rating upgrade for TransEnterix basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock Prices
The change in a company’s future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That’s partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company’s shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for TransEnterix imply an improvement in the company’s underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate Revisions
Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here >>>>.
Earnings Estimate Revisions for TransEnterix
This maker of surgical robots and medical instruments is expected to earn -$0.72 per share for the fiscal year ending December 2020, which represents a year-over-year change of 82.9%.
Analysts have been steadily raising their estimates for TransEnterix. Over the past three months, the Zacks Consensus Estimate for the company has increased 41.3%.
Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of ‘buy’ and ‘sell’ ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a ‘Strong Buy’ rating and the next 15% get a ‘Buy’ rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
On 01-26-2k21 (Tuesday) Shareholders tracking shares of TransEnterix, Inc. (TRXC) belongs to Healthcare sector and Medical Devices industry. TRXC Inc. has a total market value of 466.23M at the time of writing – representing $176.00M outstanding shares. Turning to other widely-considered trading data, this company’s half yearly performance is observed at 909.35%.
TRXC Performance Levels
Looking performance record on shares of TransEnterix, Inc. (TRXC) we observed that the stock has seen a move 173.91% over the last 52-week trading period. The stock generated performance of 806.47% tracking last 3 months. Investors will be anxiously watching to see if things will turn around and the stock will start gaining or losing momentum over the next few months. If we look back year-to-date, the stock has performed 504.80%. Shares are at 82.61% over the previous week and 609.46% over the past month.
Analyst Views: Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $1.45. Analysts often put in a lot of work to study stocks that they cover. Wall Street analysts have a consensus recommendation of 3.00on this stock. This number falls on a one to five scale where a 1 would be considered a strong buy and 5 means a strong sell, 2 shows Buy, 3 Hold, 4 reveals Sell recommendation.
Watching some historical volatility numbers on shares of TransEnterix, Inc. (TRXC) we can see that the 30 days volatility is presently 26.94%. The 7 days volatility is 32.61%. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.
The company has a beta of 3.23. 1.00 indicates that its price is correlated with the market. Less than 1.00 shows less volatility than the market. Beta greater than 1.00 indicates that the security’s price is theoretically more volatile than the market.
The Average True Range (ATR) value reported at 0.49. The average true range (ATR) is a technical analysis indicator that measures volatility by decomposing the entire range of an asset price for that period. A stock experiencing a high level of volatility has a higher ATR, and a low volatility stock has a lower ATR. The ATR may be used by market technicians to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.
TransEnterix, Inc. (TRXC) stock positioned 581.80% distance from the 200-day MA and stock price situated 306.61% away from the 50-day MA while located 138.67% off of the 20-day MA.
RSI value sited with reading of 54.55. Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.
Observing the Technical Indicators:
TransEnterix, Inc. institutional ownership is held at 21.40% while insider ownership was 0.20%. As of now, TRXC has a P/S, P/E and P/B values of 166.51, 0 and 5.91 respectively. Its P/Cash is valued at 0. The Company’s net profit margin for the 12 months at 0. Comparatively, the gazes have a Gross margin 0.
Looking into the profitability ratios of TRXC stock, an investor will find its ROE, ROA, ROI standing at -98.10%, -76.10% and -272.90%, respectively.
Earnings per Share Details of TransEnterix, Inc.
The EPS of TRXC is strolling at -1.70, measuring its EPS growth this year at -124.30%. As a result, the company has an EPS growth of 0 for the approaching year.
Given the importance of identifying companies that will ensure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years.
The payout ratio shows the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company’s earnings. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow. The payout ratio is also known as the dividend payout ratio. The Company’s payout ratio was 0 and Price to free cash flow remained $0.