Back to top

Image: Bigstock

Bear of the Day: NeuroPace (NPCE)

Read MoreHide Full Article

NeuroPace (NPCE - Free Report) is a $200 million commercial-stage medical device company focused on developing products to treat and transform the lives of patients suffering from epilepsy. NeuroPace Inc. is based in Mountain View, CA.

The company's patented RNS® System is the only FDA-approved epilepsy device that delivers personalized treatment by responding to abnormal brain activity and provides EEG data that can help improve patient care.

The RNS System is a treatment for adults with drug-resistant focal epilepsy. The NeuroPace website describes the benefits of their platform with these three key benefits...

The RNS System can help patients achieve significant seizure reduction and quality of life improvements.

Data from the RNS System provides unprecedented visibility into seizure trends and triggers that can help physicians optimize patient treatment plans.

The RNS System responds to a patient’s unique seizure fingerprint -- so patients get the treatment they need, when they need it.

A Longer Path to EPS Growth

The reason that NPCE is in the cellar of the Zacks Rank is due to recent disappointments on their quarterly earnings reports.

After their most recent report, the three Wall Street analysts providing earnings model coverage revised their consensus EPS projection down 52% for this year from a loss of $1.29 to a loss of $1.96.

And the Zacks EPS consensus for 2023 was dropped 51% from a loss of $1.04 to a loss of $1.57.

The good news is that for now, the 2023 consensus projection for $56.7 million in revenue, representing 22.8% growth, is still intact. This means the stock is trading under four times forward sales estimates.

NeuroPace is an exciting company with what appears to be an innovative solution to treating epilepsy. As soon as earnings estimates stop going down and stabilize, it could be a welcome addition to a portfolio seeking small-cap medical device growth.

The Zacks Rank will let you know.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NeuroPace, Inc. (NPCE) - free report >>

Published in