Inspire Medical Systems stock is living up to its name, with inspiring earnings growth, ranging from 36% to 390% over the last four quarters, and sales ramping up strongly too.
The maker of innovative apnea relief devices hit a key performance benchmark Wednesday, seeing its Relative Strength (RS) Rating jump into the 80-plus percentile with an improvement to 81, up from 72 the day before.
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An upgrade to 81 shows that Inspire stock is in the top 20% of all stocks for price performance over the past year. Its other ratings are outstanding too. Inspire Medical carries an 81 EPS Rating, and a 91 Composite Rating, a combination of five other key IBD ratings. Growth stocks often have a Composite Rating above 90 at the start of their biggest runs.
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Inspire Medical makes implantable devices that keep the airway open during sleep. There is no mask involved as there is with CPAP (continuous positive airway pressure) devices, which have long been the standard treatment for sleep apnea, in which people briefly stop breathing while asleep.
Small-cap Inspire Medical Systems stock is working on a consolidation with a 225 entry. See if it can break out in heavy trade. Its stock roughly doubled from a 123 low on July 26 to a 225 high on Sept. 9 and then consolidated. Wednesday afternoon it traded around 214.
Analyst Consensus: Continued Strong Growth
Golden Valley, Minn.-based Inspire Medical last quarter reported a reversal from a 29-cent per share loss a year earlier to a 60-cent per share profit, ostensibly a 307% increase. Revenue ramped up 33% in its most recent quarter to $203.2 million.
The prior three quarters its EPS rose 390%, 36% and 178%. During that period sales grew 40%, 28% and 30%. Consensus of analysts polled by FactSet is for a 46% increase in EPS on a 21% hike in revenue for the current quarter.
Inspire Medical Systems earns the No. 9 rank among its peers in the 126-stock Medical-Products industry group. Globus Medical, Penumbra and Boston Scientific are among the top five highly rated stocks within the group.
IBD's unique RS Rating identifies technical performance by showing how a stock's price action over the last 52 weeks compares to that of the other stocks in our database. Decades of market research shows that the best stocks often have an 80 or higher RS Rating in the early stages of their moves.
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