​iRhythm: Heart-Felt Investment

MoneyShow |

Image via iRhythm/Facebook

The major trend for stocks is still up, but intermediate-term, the onus is on the bulls, as many stocks have fallen toward key support, notes growth stock expert Mike Cintolo, editor of Cabot Top Ten Trader.

A couple of big selloffs from here would be a red flag, especially for names that have had big runs during the past year, though a strong sign of support could arrest the decline.

Right now, we remain mostly bullish because many stocks are still in good shape, especially early-stage growth stocks that are trading resiliently and new leadership is emerging as money rotates into other areas.

iRhythm Technologies (IRTC) is a small firm with a potentially revolutionary product. The company’s Zio technology is a wearable patch heart monitor that can give up to two weeks of electrocardiogram (ECG) data on cardiac arrhythmias like atrial fibrillation.

Extended monitoring is recommended for patients who have undergone an ablation procedure for the treatment of an arrhythmia as well as diagnostic monitoring for suspected arrhythmias.

The gold standard for this kind of monitoring has been a Holter monitor, a portable device that uses between three and eight attached electrodes and a recording device that either hangs on the patient’s neck or is attached to the belt.

iRhythm’s Zio patch is a compact, wire-free wearable device that packs both electrodes and recording technology into an unobtrusive water-resistant patch.

The Zio device was found to be “substantially equivalent” to a Holter in 2013. But iRhythm is being favored by investors now because a recent study by a number of professional organizations found that Zio’s long-duration recording and ease of use actually made it superior to Holter technology in post-ablation monitoring.

iRhythm’s 150-million-hour database of sample ECGs is also useful to physicians for diagnostic purposes. The cardiac monitoring market in the U.S. is around $1.4 billion annually, and while iRhythm isn’t yet profitable, revenue growth has been strong — 66% in 2015 and 73% in 2016.

IRTC came public in October 2016 at $26, and after a couple of false starts soared to $40 in February 2017. The stock’s orderly dip to the low $30s in April and May looks like its post-IPO consolidation.

The stock then blasted off on heavy volume in June and continued higher all month. You can buy on any weakness, with a stop around $38.

Mike Cintolo is Vice President of Investments and Chief Analyst at Cabot Heritage Corporation.

Subscribe to Mike Cintolo’s Cabot Top Ten Trader here…

About MoneyShow.com: Founded in 1981, MoneyShow is a privately held financial media company headquartered in Sarasota, Florida. As a global network of investing and trading education, MoneyShow presents an extensive agenda of live and online events that attract over 75,000 investors, traders and financial advisors around the world.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Symbol Name Price Change % Volume
IRTC iRhythm Technologies Inc. 70.98 2.81 4.12 465,412 Trade


Emerging Growth

Viking Energy Group Inc

Viking Investments Group Inc provides professional advisory and consulting services to companies undergoing or anticipating periods of rapid growth, change or ownership transition.

Private Markets

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.


Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…