Neuronetics (STIM Quick QuoteSTIM - Free Report) shares soared 39.2% in the last trading session to close at $14.13. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 17.1% loss over the past four weeks.

Neuronetics scored a strong price rise driven by its encouraging first-quarter 2021 results, with adjusted loss narrower than the Zacks Consensus Estimate as well as the year-ago reported figure. The quarter’s revenue too surpassed the consensus mark and exceeded the year-ago top line. The company’s raised 2021 worldwide revenue guidance also buoys optimism.

Price and Consensus

This medical device company focused on psychiatric disorders is expected to post quarterly loss of $0.33 per share in its upcoming report, which represents a year-over-year change of +51.5%. Revenues are expected to be $11.5 million, up 0.1% 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 Neuronetics, 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 STIM 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 >>>>