Tactile Systems Technology (TCMD Quick QuoteTCMD - Free Report) shares ended the last trading session 7.1% higher at $52.06. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.1% loss over the past four weeks.

Tactile Systems recorded a strong price increase on optimism surrounding a Piper Sandler report of Mar 30 which reiterated its overweight rating on the stock. The report referred to a favorable outcome related to the company’s qui tam lawsuit. The report also projected a recovery in Tactile Systems’ core business in the coming quarters from the pandemic debacle.

Price and Consensus

This medical device maker is expected to post quarterly loss of $0.10 per share in its upcoming report, which represents a year-over-year change of -42.9%. Revenues are expected to be $41.56 million, down 4.9% 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 Tactile Systems Technology, 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 TCMD 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 >>>>