Why AI Stock HeartFlow Triumphed on Thursday
Key Points
The specialized healthcare diagnostics company earned two endorsements from heart health organizations.
These concerned HeartFlow's plaque detection product.
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HeartFlow (NASDAQ: HTFL) had a Thursday to remember, at least as far as its stock was concerned. The specialty healthcare company saw its share price leap by 9% that day, on news that its technology had received a stamp of approval from two influential heart health organizations.
Heartened by new endorsements
HeartFlow, which harnesses artificial intelligence (AI) to deliver deep analysis of the most important organ in the body, announced that the pair of groups effectively endorsed one of its products.
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Image source: Getty Images.
The company said that both the American College of Cardiology (ACC) and the American Heart Association (AHA) have published scientific statements in medical journals supporting the value of quantifying coronary plaque. These are potentially harmful fatty deposits that can accumulate in the heart and are detectable using the company's products.
Its HeartFlow Plaque Analysis is a Food and Drug Administration (FDA)-cleared diagnostic tool that analyzes standard cardiac CT scans for plaque, and is foundational to the company's business.
Reputation enhancement
In the press release heralding the twin endorsements, HeartFlow wrote of Plaque Analysis that its "rigor, together with HeartFlow's commitment to standardized reporting and advanced algorithmic approaches such as adaptive thresholds, reflects a level of validation and quality oversight consistent with ACC guidance."
In the healthcare field, endorsements from top organizations -- particularly those comprised of physicians -- carry significant weight. The ADC's nod, in particular, should help lift the reputation and prominence of HealthFlow's anchor product. It also provides a compelling reason to hold onto or buy the stock.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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