Paragon 28, Inc. (FNA) Moves 16.2% Higher: Will This Strength Last?

Paragon 28, Inc. FNA shares rallied 16.2% in the last trading session to close at $11.91. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 15.7% loss over the past four weeks.

Paragon 28 scored a strong price increase, on investors’ optimism driven by the company’s recent announcement of the 2023 fourth-quarter results, wherein the top-line increased 17.6% compared to the last year’s comparable period. International revenues jumped 43.1% year over year and the company continued to witness solid, balanced growth from each of its foot and ankle segments. Further, the market is also upbeat about Paragon 28’s full 2024 revenue guidance, expected to grow 15.1%-19.7% compared to the prior year.

This company is expected to post quarterly loss of $0.11 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $58.89 million, up 13.2% 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 Paragon 28, Inc., the consensus EPS estimate for the quarter has been revised 31.3% 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 FNA 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 >>>>

Paragon 28, Inc. is a member of the Zacks Medical - Instruments industry. One other stock in the same industry, Fresenius FMS, finished the last trading session 2.4% higher at $19.36. FMS has returned -3.6% over the past month.

For Fresenius , the consensus EPS estimate for the upcoming report has changed -4% over the past month to $0.24. This represents a change of -14.3% from what the company reported a year ago. Fresenius currently has a Zacks Rank of #3 (Hold).

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