Profound Medical (PROF) shares rallied 5.1% in the last trading session to close at $7.85. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 17.2% loss over the past four weeks.
The sudden surge in share price can be attributed to positive investor expectations from Profound’s lead marketed product, the Tulsa-Pro system, which is approved for the ablation of prostate tissue. In July 2024, the U.S. Centers for Medicare & Medicaid Services proposed a reimbursement rule under the outpatient prospective payment system for three new CPT Category 1 codes related to the TULSA procedure. The final rule is expected in November 2024 and will take effect on January 1, 2025. An early-stage study is currently comparing the TULSA procedure to radical prostatectomy in men with localized prostate cancer. Profound expects to report interim data from this post-market study in the first half of 2025.
This company is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of -19.2%. Revenues are expected to be $3.27 million, up 88.8% 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 Profound Medical, 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 PROF 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 >>>>
Profound Medical is part of the Zacks Medical - Drugs industry. USANA Health Sciences (USNA), another stock in the same industry, closed the last trading session 3.6% higher at $37.83. USNA has returned -9.6% in the past month.
For USANA Health
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