NeuroPace, Inc. NPCE shares soared 6.3% in the last trading session to close at $18.12. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.4% gain over the past four weeks.
NeuroPace scored a strong price increase on investors’ optimism surrounding the company’s impending first quarter financial result, which is slated to release on May 12. Per the Zacks Consensus Estimate, the company’s first quarter revenue is projected to be $21.6 million and loss per share is pegged at 19 cents.
This company is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of +9.5%. Revenues are expected to be $21.62 million, down 4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For NeuroPace, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on NPCE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
NeuroPace is part of the Zacks Medical - Instruments industry. Steris STE, another stock in the same industry, closed the last trading session 0.7% higher at $214.46. STE has returned -2.9% in the past month.
For Steris, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.89. This represents a change of +5.5% from what the company reported a year ago. Steris currently has a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
