(EYE) - Advanced Medical Optics has risen about 35% since May 31, 2005 and set new highs on Tuesday

Full Analysis It'll be a couple of weeks before EYE reports earnings for the Jun 06 quarter. The analysts' consensus is that the company will earn 50 cents per share, up 35.1% from the 37 cents achieved in the Jun 05 quarter. Technical Analysis Advanced Medical Optics has performed well since the May 2005 acquisition of VISX, Inc. The stock has risen about 35% since May 31, 2005 and set new highs on Tuesday, topping out at $52.90 before closing at $52.04. The stock experienced some resistance at the $50 level (more psychological than material) before moving above that level last week. But it was Tuesday's wide range and heavy volume that made Momentum traders sit up and take notice. EYE is a perfect example of a company with improving fundamentals (earnings expected to be up 35% from last year) being rewarded by the market as a result (the stock is up 35% year to date). With no overhead resistance, EYE will continue to move higher until there is some evidence of slowing earnings. And if it can manage a positive earnings surprise on Aug 1, when the company expects to announce the Jun quarter results, then given the current positive technical profile, the stock could move much higher. Background Advanced Medical Optics is a global leader in the development, manufacturing and marketing of medical devices for the eye and contact lens care products. They focus on developing a broad suite of innovative technologies and devices to address a wide range of eye disorders. Products in the ophthalmic surgical line include foldable intraocular lenses, phacoemulsification systems, viscoelastics and related products used in cataract surgery and microkeratomes used in LASIK procedures for refractive error correction. Note: The Zacks Rank is a very sensitive indicator that can change frequently for an individual stock. This important indicator is updated daily on Zacks.com and is available to Zacks Premium subscribers. As such, it is prudent to check the site for the latest Zacks Rank on the stocks highlighted in this section. Simply click the link for the stock or enter the symbol in the ticker entry box in the upper left hand corner of the web site. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. Blog Home