EDAP TMS S.A. (EDAP Quick QuoteEDAP - Free Report) shares rallied 18.8% in the last trading session to close at $9.68. 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 14.6% loss over the past four weeks.

This marks the third consecutive trading day of EDAP TMS’s price increase driven by the optimism surrounding its upcoming release of fourth quarter 2020 financial results scheduled on Mar 30. As per the Zacks Consensus Estimate, earnings per share for the quarter will likely be near 10 cents while revenue will be around $18.61 million implying expected growth of 150% and 39.4% respectively over the year-ago period.

Price and Consensus

This company is expected to post quarterly earnings of $0.10 per share in its upcoming report, which represents a year-over-year change of +150%. Revenues are expected to be $18.61 million, up 39.4% 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 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 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>