Natus Medical shares rallied 6.6% in the last trading session to close at $28.25. 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 10.7% gain over the past four weeks.

Natus Medical recorded a strong price rise on investors’ optimism surrounding its impending first-quarter 2021 earnings result. The Zacks Consensus Estimate for the first-quarter earnings is pegged at 16 cents, an expected 300% surge from the year-ago reported figure.

Price and Consensus

This maker of medical device for newborn care is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of +300%. Revenues are expected to be $111.4 million, up 1.9% 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 Natus 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 NTUS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>