MediWound (MDWD) shares ended the last trading session 8.5% higher at $19.83. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.5% gain over the past four weeks.

The sudden stock price rise can be attributed to positive investor expectations regarding the company’s pipeline potential. MediWound is currently developing EscharEx in mid to late-stage studies for treating various ulcer indications. A regulatory filing seeking the approval of the candidate for venous leg ulcers is expected in 2025. Another candidate, MW005 is also currently undergoing mid-stage development for non-melanoma skin cancer. MediWound currently markets NexoBrid which is approved for eschar removal in adult and pediatric patients with deep partial thickness and/or full thickness thermal burns in several geographies including the United States. Investors also likely expect an increase in year-over-year sales of the product in the upcoming quarterly release.

This developer of treatments for burns and hard-to-heal wounds is expected to post quarterly loss of $0.61 per share in its upcoming report, which represents a year-over-year change of -221.1%. Revenues are expected to be $5.8 million, up 8.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For MediWound, the consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on MDWD 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 >>>>

MediWound is a member of the Zacks Medical - Drugs industry. One other stock in the same industry, Nektar Therapeutics (NKTR), finished the last trading session 1.1% lower at $0.88. NKTR has returned -6% over the past month.

For Nektar , the consensus EPS estimate for the upcoming report has changed +0.2% over the past month to -$0.13. This represents a change of +40.9% from what the company reported a year ago. Nektar currently has a Zacks Rank of #3 (Hold).

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