ViewRay shares rallied 13.8% in the last trading session to close at $5.44. 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 12.5% gain over the past four weeks.

ViewRay recorded a strong price increase driven by its encouraging first-quarter 2021 results, with revenues surpassing Zacks Consensus Estimate by 28.2%. The company received seven new orders for MRIdian systems in the reported quarter compared to the year-ago period, which contributed robustly to the top line. The company’s clinical innovation and commercial pipelines raise optimism.

Price and Consensus

This radiation therapy systems maker is expected to post quarterly loss of $0.16 per share in its upcoming report, which represents a year-over-year change of +11.1%. Revenues are expected to be $13.93 million, down 2% 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 ViewRay, the consensus EPS estimate for the quarter has been revised 2.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on VRAY 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 >>>>