Outset MedicalNASDAQ: OM

Outset Medical (OM) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

OM's most recent agreement is expected to offer patients and caregivers the opportunity to use advanced home dialysis technology with the Tablo Hemodialysis System.

Outset Medical, Inc. (OM) Q4 2023 Earnings Call Transcript

Outset Medical, Inc. (OM) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

Target has moved past its inventory woes and is showing positive signs. Outset Medical has faced setbacks, but still has a long runway for growth.

Outset Medical, Inc. (OM) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.

The heavy selling pressure might have exhausted for Outset Medical, Inc. (OM) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.

Outset Medical Inc stock was downgraded by BofA Securities analysts to ‘Underperform' from ‘Buy', and its price objective was cut to $3 per share from $32, after the medical technology company reported lower-than-expected preliminary third-quarter 2023 revenue and warned of reduced capital spending in 4Q.  "We think the Underperform rating is appropriate as Outset has had multiple execution missteps now and companies without profitability have even less margin of error given there is no real profitability valuation floor," the analysts wrote.

Outset Medical Inc shares sank as much as 40% in pre-market trading on Friday after the medical technology company reported lower-than-expected preliminary third-quarter 2023 revenue of $30.4 million and warned of reduced capital spending in 4Q.   Outset also said it now expects revenue for 2023 to be about $130 million, down from the company's previous forecast of $144 million to $150 million in August.