What happened Shares of Zynex (NASDAQ: ZYXI) were tanking 26.5% lower as of 11:20 a.m. EDT on Monday. The big decline came after the medical technology company announced lower-than-expected orders for the third quarter and lowered its third-quarter revenue estimate because of the impact of the COVID-19 pandemic. So what Today's sell-off might seem like an overreaction. After all, Zynex still expects that its orders in Q3 will increase 96% year over year and 87% from the previous quarter. The company's Q3 revenue estimate is now between $20 million and $20.5 million. While that's down from the previous guidance range of $22.3 million to $22.8 million, it reflects a decrease of only 10% at the midpoints of the ranges. Image source: Getty Images. Zynex also still expects that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will be between $2.3 million and $2.8 million, in line with its previous outlook. The company projects that full-year 2020 revenue will be between $80 million and $81 million, within its previous guidance of full-year revenue between $80 million and $85 million. The problem for Zynex, though, is that its valuation is priced for perfection. The healthcare stock trades at nearly 44 times expected earnings. Any bad news is likely to take a toll when a stock trades at such a lofty level. Now what In the short term, the main thing to watch with Zynex is how the COVID-19 pandemic might continue to impact its order growth. Over the longer term, though, the company's expansion of its sales force could pay off in higher revenue. 10 stocks we like better than Zynex, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Zynex, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of September 24, 2020 Keith Speights 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.Source