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Strength Seen in NeuroPace (NPCE): Can Its 5.1% Jump Turn into More Strength?

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NeuroPace, Inc. (NPCE - Free Report) shares rallied 5.1% in the last trading session to close at $6.35. 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 10.1% loss over the past four weeks.

NeuroPace recorded a strong price rise on investors’ optimism surrounding its impending third-quarter 2024 financial results, which is slated to be released on Nov. 12, 2024, post the closing bell. The Zacks Consensus Estimate for the third quarter revenue suggests a growth of 17.6% and earnings growth of 7.1%. 

This company is expected to post quarterly loss of $0.26 per share in its upcoming report, which represents a year-over-year change of +7.1%. Revenues are expected to be $19.33 million, up 17.7% 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 NeuroPace, 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 NPCE 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 >>>>

NeuroPace belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Masimo (MASI - Free Report) , closed the last trading session 1% lower at $139.33. Over the past month, MASI has returned 5.7%.

For Masimo, the consensus EPS estimate for the upcoming report has changed +0.9% over the past month to $0.84. This represents a change of +33.3% from what the company reported a year ago. Masimo currently has a Zacks Rank of #2 (Buy).


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