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Strength Seen in Profound Medical (PROF): Can Its 19.5% Jump Turn into More Strength?

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Profound Medical (PROF - Free Report) shares ended the last trading session 19.5% higher at $9.56. 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 8.9% loss over the past four weeks.

The rise in share price is attributed to positive investor expectation on the company's lead marketed product Tulsa-Pro system which is approved for the ablation of prostate tissue. Last month, management announced revenues of around $3.4 million for the first half of 2023.

This company is expected to post quarterly loss of $0.32 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $2.4 million, up 17.7% 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 Profound 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 PROF 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 >>>>

Profound Medical is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Corcept Therapeutics (CORT - Free Report) , finished the last trading session 3.4% lower at $32.32. CORT has returned 8.2% over the past month.

For Corcept, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.20. This represents a change of -33.3% from what the company reported a year ago. Corcept currently has a Zacks Rank of #2 (Buy).

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