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Profound Medical (PROF) Soars 9.5%: Is Further Upside Left in the Stock?

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Profound Medical (PROF - Free Report) shares soared 9.5% in the last trading session to close at $8.34. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.3% loss over the past four weeks.

Profound Medical’s share price rose following the announcement that Mount Sinai Hospital has successfully treated its first prostate cancer patient using the TULSA-PRO system.  This platform is used by physicians to treat both prostate cancer and benign prostatic hyperplasia. Profound is commercializing TULSA-PRO, an advanced technology that integrates real-time MRI guidance, AI-enhanced treatment planning, robotically driven transurethral ultrasound, and closed-loop temperature feedback control.

This company is expected to post quarterly loss of $0.28 per share in its upcoming report, which represents a year-over-year change of -40%. Revenues are expected to be $8 million, up 91.4% 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 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, Rigel Pharmaceuticals (RIGL - Free Report) , finished the last trading session 3.4% lower at $37.78. RIGL has returned -6.7% over the past month.

For Rigel, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.17. This represents a change of +46.3% from what the company reported a year ago. Rigel currently has a Zacks Rank of #3 (Hold).


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