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Strength Seen in MediWound (MDWD): Can Its 14.3% Jump Turn into More Strength?

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MediWound (MDWD - Free Report) shares soared 14.3% in the last trading session to close at $18.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 1.7% gain over the past four weeks.

Last month, the company announced robust financial results for the full year and fourth quarter ended 2023. This might have been driving the share price rally.

This developer of treatments for burns and hard-to-heal wounds is expected to post quarterly loss of $0.40 per share in its upcoming report, which represents a year-over-year change of +9.1%. Revenues are expected to be $4.65 million, up 22.3% 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 MediWound, the consensus EPS estimate for the quarter has been revised 8.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MDWD 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 >>>>

MediWound belongs to the Zacks Medical - Drugs industry. Another stock from the same industry, Xeris Biopharma (XERS - Free Report) , closed the last trading session 2.7% lower at $1.80. Over the past month, XERS has returned -13.2%.

Xeris Biopharma's consensus EPS estimate for the upcoming report has changed -0.7% over the past month to -$0.12. Compared to the company's year-ago EPS, this represents no change. Xeris Biopharma currently boasts a Zacks Rank of #4 (Sell).

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