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Strength Seen in Silk Road Medical (SILK): Can Its 9.3% Jump Turn into More Strength?

Silk Road Medical SILK shares rallied 9.3% in the last trading session to close at $47.94. 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 12.5% gain over the past four weeks.

Silk Road Medical recorded a strong price rise on investors’ optimism surrounding a bullish report (released on Sep 27) published in PULSE 2.0. The report says, Stifel analyst Rick Wise reiterated a ‘Buy’ rating on the stock after a factory tour, interactions with CEO Erica Rogers, and a TCAR user panel. As per the report, Wise was encouraged about the company’s growth and innovation outlook.

This medical device maker is expected to post quarterly loss of $0.44 per share in its upcoming report, which represents a year-over-year change of -10%. Revenues are expected to be $33.84 million, up 37% 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 Silk Road 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 SILK 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 >>>>

Silk Road Medical is part of the Zacks Medical - Instruments industry. OrthoPediatrics KIDS, another stock in the same industry, closed the last trading session 4.7% higher at $47.21. KIDS has returned -10.1% in the past month.

For OrthoPediatrics , the consensus EPS estimate for the upcoming report has changed +2.6% over the past month to -$0.19. This represents a change of -26.7% from what the company reported a year ago. OrthoPediatrics currently has a Zacks Rank of #3 (Hold).

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