iRhythm Technologies Inc. (NASDAQ:IRTC) saw its stock surge 5.27% intraday on Wednesday, rebounding from a recent selloff. The movement comes after the company reported preliminary fourth-quarter operational highlights earlier in the week, which initially led to a 20% drop in share price.

Analyst Brandon Vazquez of William Blair attributed the earlier weakness to delays in the launch of Zio MCT and guidance that fell short of Street expectations. However, Vazquez believes the selloff was overblown and recommends buying the stock, citing a favorable growth setup and a rapid reset in valuation. William Blair maintains an Outperform rating and has added IRTC to its Analyst Conviction List.