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Strength Seen in EDAP TMS S.A. (EDAP): Can Its 13.4% Jump Turn into More Strength?

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EDAP TMS S.A. (EDAP - Free Report) shares rallied 13.4% in the last trading session to close at $7.20. 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 3.9% loss over the past four weeks.

EDAP TMS S.A. scored a strong price rise on investors’ optimism surrounding the newly-proposed outpatient prospective payment system (OPPS) reimbursement rule of the U.S. Centers for Medicare and Medicaid Services (CMS) for calendar year 2023. Per the proposed rule, the reimbursement level for a Focal One HIFU (High-Intensity Focused Ultrasound) procedure completed on an outpatient basis at a hospital will be raised to an Ambulatory Payment Classification (APC) level 6, as compared to APC level 5 at present.

Since many commercial payors have begun to cover focal HIFU for their members, the move to APC level 6 is expected to have positive effects for patients outside of Medicare as well.

This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of -50%. Revenues are expected to be $14.17 million, up 13.8% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For EDAP TMS S.A., 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 EDAP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

EDAP TMS S.A. belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Semler Scientific Inc. , closed the last trading session 3.3% lower at $28.13. Over the past month, SMLR has returned -0.2%.

Semler Scientific Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.40. Compared to the company's year-ago EPS, this represents a change of -51.8%. Semler Scientific Inc. currently boasts a Zacks Rank of #3 (Hold).


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