Strength Seen in PROCEPT BioRobotics Corporation (PRCT): Can Its 15.1% Jump Turn into More Strength?
PROCEPT BioRobotics Corporation (PRCT) shares soared 15.1% in the last trading session to close at $48.60. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 9.4% gain over the past four weeks.
PROCEPT BioRobotics scored a strong price increase, driven by investor’s optimism surrounding the company’s announcement of preliminary revenues for the quarter and fiscal year ended Dec 31, 2023. The company anticipates revenues in the fourth quarter to be within $43.3 million-$43.6 million, higher than the Zacks Consensus Estimate of $40.8 million. Revenues are also projected to increase nearly 81%-82% year over year in the fiscal 2023. The Zacks Consensus Estimate for the same reflects a year-over-year growth of 77.9%.
This company is expected to post quarterly loss of $0.44 per share in its upcoming report, which represents a year-over-year change of +21.4%. Revenues are expected to be $40.83 million, up 71.7% 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 PROCEPT BioRobotics Corporation, 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 PRCT 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 >>>>
PROCEPT BioRobotics Corporation is part of the Zacks Medical - Instruments industry. Accuray (ARAY), another stock in the same industry, closed the last trading session 1.4% lower at $2.78. ARAY has returned 8.9% in the past month.
Accuray's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.07. Compared to the company's year-ago EPS, this represents a change of -250%. Accuray currently boasts a Zacks Rank of #3 (Hold).
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