CareDx CDNA shares rallied 11.5% in the last trading session to close at $26.18. 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 11% gain over the past four weeks.
CareDx scored a strong price increase on investors’ optimism surrounding the publication of a new analysis from the Kidney Allograft Outcomes AlloSure Registry (KOAR), a landmark multi-center study, in the Journal of the American Society of Nephrology (JASN). Data support the role of AlloSure Kidney as a noninvasive tool for longitudinal risk stratification and clinical decision-making.
This molecular diagnostics company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +120%. Revenues are expected to be $114.35 million, up 31.9% 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 CareDx, 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 CDNA 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 >>>>
CareDx belongs to the Zacks Medical Services industry. Another stock from the same industry, LifeMD, Inc. LFMD, closed the last trading session 3.3% lower at $4.75. Over the past month, LFMD has returned 15.3%.
LifeMD's consensus EPS estimate for the upcoming report has changed -300% over the past month to -$0.2. Compared to the company's year-ago EPS, this represents a change of -233.3%. LifeMD currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
